MARKET OUTLOOK - As China's Market Becomes Murky, Japan Shines

According to Dilin Wu from Pepperstone, uncertainty prevails in the Asian markets while the stock outlooks for China and Japan appear to be diverging. Wu stated, "The lack of focus on consumption and real estate incentives in China failed to trigger upward momentum," adding that concerns about weak domestic demand persist and Trump's threat of tariffs on exports complicates recovery in the stock market. On the other hand, Wu noted that "Japan is following a more positive trajectory," highlighting that the Nikkei is exhibiting increasing optimism, with the 3rd quarter GDP growth and ongoing wage increases indicating promising economic conditions. Wu also mentioned that corporate reforms and the depreciation of the yen are boosting profits for export-oriented firms and supporting investor confidence. Furthermore, he emphasized that China's stringent tariffs could unintentionally increase Japan's global market share and enhance the competitiveness of its firms as alternatives to Chinese manufacturers.