The China-led stock slump that's taking Japanese equities down with it will ultimately prove a boon for investors in Japan, according to Taiyo Pacific Partners LP, which manages $2.2 billion, including money from the world's biggest pension fund.
Concerns about an economic slowdown in China and government meddling in its markets has dragged down equities worldwide, with major Japanese stock indexes falling as much as 20 percent from 2015 highs. Meanwhile the performance of the yen, which strengthened to a one-year high against the dollar last week, signals a turning point for investor sentiment, said Brian Heywood, chief executive officer of Taiyo.
"Over the last 10 years, China has been the sexy market," he said in a recent interview in Tokyo. "There is a shift going on. Japan could benefit from the shakeout of China. It is a safer place to put your money."