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Thoughts on Nikkei vs. Chinese Equities Divergence
It's been interesting to watch the Nikkei maintain its upward trajectory, while we've seen more hesitancy in some of the Chinese equity markets. My personal take is that the 'Japan is back' narrative has gotten a bit ahead of itself, driven largely by Yen weakness and a perception of better corporate governance that hasn't fully materialized across the board. On the other hand, the pessimism surrounding China feels overdone given some of the underlying fundamentals, especially outside of real estate. I'm starting to think the smart money might be quietly accumulating in select Chinese names while everyone chases the Nikkei's reflection. Change my mind. What am I missing here?
1 comments · 1 points
That's a good point about the 'Japan is back' narrative potentially being overblown. I'm curious if you think there are specific sectors within the Nikkei that are more susceptible to a correction if that narrative doesn't fully play out, or if it's more of a broad market concern?