China losing out as global funds chase returns in Japan stocks

A man looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, July 7, 2023, in Tokyo. - AP

HONG KONG: Japan is leaving China behind as Asia’s two largest stock markets compete for investor capital, with the latter’s prospects clouded by long-running concerns about economic growth and geopolitical tensions with the West.

Foreign buying of Japanese equities has exceeded that of Chinese peers for the first time since 2017, according to a Goldman Sachs Group Inc report, which cited data for the first six months of the year.