Japan’s market capitalization increase is top in Asia, reaching twice that of China with the Nikkei Stock Average recording its highest level in 33 years.
Investors are once again paying attention to Japanese stocks due to uncertainty in China’s future, resulting in numerous buy orders coming from Asia and Europe.
In the midst of prolonged conflict with China, Canada’s pension fund has also taken steps to decrease Chinese investment.
The reason foreign investors are focusing on Japanese stocks is due to expectations of improvement in return on equity (ROE) and expansion of shareholder return.