Asian markets have entered the Year of the Horse with investor attention increasingly turning towards China, even as Japanese equities rallied on renewed trade clarity with the United States. While Tokyo advanced sharply following confirmation of a bilateral trade and investment framework, mainland Chinese and South Korean exchanges were closed for the Lunar New Year holiday, limiting immediate regional comparison.
Japan’s move illustrates how quickly capital can respond to discrete policy catalysts. Greater visibility on tariffs and cross border investment flows has reduced uncertainty for export oriented Japanese companies, compressing risk premia in the short term. China presents a different dynamic. Rather than a single external agreement, its investment case rests on domestic policy calibration and incremental measures aimed at stabilising growth and restoring confidence in capital markets.
Recent commentary has pointed to the potential for renewed support in Chinese equities as policymakers signal a preference for steadier economic conditions and improved market functioning.
Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.
