A Tale of Two Markets for a Marketplace. I'm Sabrie Beneshore in for David Brancaccio.

It was the best of times and it was the worst of times for markets in Asia.

Japan's Nikk had 34-year highs, China's... for markets in

have hit 5 year lows.

The Hangsang's lost more than half its value since the end of 2020.

Capital is moving in Asia, and that appears to be a sign of bigger economic trends.

With us to talk about it is Eric Altbach, a partner at Albright Stonebridge Group.

Good morning.

Good morning. What is going on in Japan that is driving its

market so high and does it say something about Japan's economy broadly speaking?

The proximate cause is you know the recovery in tech stocks so that's part of it but another element is the fact that Japan's market has been

Undervalued for many years by a variety of metrics.

That is in contrast to the fortunes of Chinese markets, which have not done so great.

Hangsang has lost half its value in just about four years.

Why is that?

What's going on there?

Well, investor sentiment on China internationally, I think has soured quite a bit over the past year in particular because of the disappointing recovery post-COVID, the rising tensions between China and its key trading partners, all of

that is creating a negative sentiment towards the China market.

So that I think is quite different from the views on Japan.

How much of this is just sort of a, well, this is a thing that's happening this year,

and how much of it is something more fundamental about both the Chinese and Japanese economies.

I think on China, there will probably be some recalibration if China seems to be able to kind of get on a more sustainable growth trajectory.

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