Global stock investors' appetite shifts from Japan to Europe, China

First phase of Tokyo's governance reforms has begun losing appeal

20250306 Japan stocks

The Nikkei Stock Average dropped more than 2% on Friday amid concerns the U.S. could be heading in to a recession and a stronger yen. (Photo by Rie Ishii)

LISA KIM

TOKYO -- Foreign investors' demand for Japanese stocks has waned as momentum shifts to European and Chinese shares and as the appeal of Tokyo's corporate governance reforms begins to lose steam.

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