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Major foreign media outlets are leaving Japan in droves, a sign of financial difficulties at home as the news industry struggles with falling advertising revenue. But observers note that Japan is also losing its appeal as the most newsworthy country in Asia, with China now the hot spot.

In the latest withdrawal from Japan, the news magazine Time closed its editorial branch in Tokyo earlier this month. Last year, Newsweek shut down its editorial section in Tokyo while the editorial staff of BusinessWeek merged with Bloomberg after the financial news service announced it would buy the magazine last October.

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