Japan equity managers are buying back into domestic companies and cutting their exposure to export-led firms as the slowdown in China and a flat yen weigh on sentiment.
Consumer sector growth in China could bolster the economy and make the country a better long-term investment than it may currently appear, according to fund managers.
Martin Gilbert, chief executive of Aberdeen Asset Management, said there are currently no capacity constraints on the group's Asia Pacific funds, despite previously suggesting they will soon be soft-closed.
Shinzo Abe's weekend election victory means Japan is set to enjoy the implementation of a 'Super-Abenomics' strategy which could surprise investors, according to strategists.