Japanese equity market faces collateral damage in US-China trade war

The Japanese equity market has seen net outflows in the past 12 months, with concerns over global growth and the trade war weighing on investor sentiment in the region.

Principal among investors' fears has been the outlook for China, Japan's second largest trade partner after the US, where growth has been slowing at a faster rate than other major economies. Moreover, ongoing trade machinations have done little to instil confidence in a turnaround.  The 'icing on the cake' in Japan While trade tensions remain a genuine concern, the impact on Japan will be limited as the tariffs imposed so far do not specifically target Japanese businesses. Even in cases where Japan has faced collateral damage, the impact should be lower than market expectations ...