- Policy announcements that include a $278 billion rescue package have given Chinese equities a boost.
- Longer-term, economic fundamentals will likely remain the key driver – deflation remains an issue and authorities need to defuse the property bubble.
- Despite near-term challenges, China remains a potential beneficiary of long-term strategic planning around themes like clean energy.
- Japanese equities continue to benefit from ongoing improvements in corporate governance as well as the country’s gradual exit from deflation.
- Despite some concerns about an appreciating yen, the outlook for Japan remains a broadly positive one.