Global Capital Reallocation Wave
The start of the Fed rate cut cycle is triggering global capital reallocation. A weaker dollar and declining expected returns on dollar assets are driving large-scale capital flows to non-US markets. Asia, with strong economic growth, reasonable valuations and deepening financial market reforms, has become the primary destination.
Japan Stocks: The Double-Edged Sword of Yen Appreciation
The Japanese stock market experienced complex effects from yen appreciation in 2025. On one hand, BOJ rate hikes and yen strengthening boosted Japanese assets international appeal. On the other hand, yen appreciation pressured export-oriented companies earnings.
HK and A-shares: Valuation Gap Effect
Hong Kong and A-shares, with the lowest valuations among major global markets, have become key targets for value investors. Cross-border capital is accelerating into Chinese assets through Stock Connect and QFII channels.
