Standard & Poor's has downgraded Japan's sovereign debt rating to AA- from AA as the group expects the country's fiscal deficit to remain high in the next few years.
Threadneedle's chief investment officer Mark Burgess explains why he is selling down emerging market equities and moving from underweight to neutral on Japan.
Sentiment towards out-of-favour Japan is beginning to turn, with the market rising 11% since October, said Sarah Whitley, manager of the £168m Baillie Gifford Japan trust.
Fund manager heavyweights Hugh Hendry and Anthony Bolton have clashed on the outlook for China.
BlackRock's Bob Doll has hit back at those drawing comparisons between Japan and the US, saying the latter has actually learnt from Japan's misfortune.