Stefanie Drews

Japan equities are in a powerful structural uptrend supported by multiple tailwinds: corporate governance reforms, geopolitical stability, the successful NISA tax-free retail investment program that is shifting household cash deposits into capital markets, potential GPIF reallocation toward broader assets, and enormous renewed global institutional interest that is driving index performance. Japan also plays the AI ecosystem as a downstream play, adding another layer of demand.

China presents a clear two-tier market: the new economy (lithium, solar, electric vehicles, industrial robotics, hardware and massive government-backed infrastructure) is a powerful growth story, while the legacy economy (property, weak retail) is structurally fading. Geopolitical risk is already fairly priced, making the innovation premium attractive. Investors should go long new-economy sectors and avoid legacy real estate and consumer names.