China (FXI) vs Japan (EWJ)
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
China and Japan offer different Asian investment themes: FXI reflects Chinese policy cycles and growth outlook, while EWJ reflects yen cycles and corporate reforms. When FXI leads EWJ, China reopening or stimulus narratives dominate. When EWJ leads FXI, yen weakness and Japanese-specific catalysts are the drivers.
Cross-Asset Analysis
China Large-Cap (FXI) captures iShares China Large-Cap ETF, proxy for Chinese equity market, whereas Japan / Nikkei (EWJ) reflects iShares MSCI Japan ETF, proxy for the Nikkei 225 and Japanese equity market, and the difference between how they move is what the peer pair relationship is really about. Index construction choices inside China Large-Cap (FXI) and Japan / Nikkei (EWJ), including weighting methodology and inclusion rules, create persistent tilts that show up in the spread. Late-cycle environments force China Large-Cap (FXI) and Japan / Nikkei (EWJ) to express their respective defensive and cyclical tilts more sharply, making the spread a useful regime tell.
Liquidity differences between China Large-Cap (FXI) and Japan / Nikkei (EWJ) produce asymmetric spread moves during risk-off episodes. Factor exposures embedded inside China Large-Cap (FXI) and Japan / Nikkei (EWJ) drive their relative performance, with growth-value, large-small, and domestic-international all surfacing in the spread. Pairs like China Large-Cap (FXI) and Japan / Nikkei (EWJ) trade tighter than either leg does individually, because the common component is high and the remaining idiosyncratic share is what the pair expresses.
Inside the Equity Index universe, China Large-Cap (FXI) and Japan / Nikkei (EWJ) represent different flavors of the same underlying exposure. China Large-Cap (FXI) and Japan / Nikkei (EWJ) look similar at a glance, but the embedded factor tilts between them matter substantially over time.
90-Day Statistics
No data available
No data available
Explore Each Metric
Related Scenarios & Forecasts
Get daily macro analysis comparing key metrics delivered to your inbox. Stay ahead of market-moving divergences.
Frequently Asked Questions
What is the relationship between China Large-Cap (FXI) and Japan / Nikkei (EWJ)?+
China Large-Cap (FXI) and Japan / Nikkei (EWJ) are connected through shared asset class exposure with different factor tilts. When the underlying asset class shifts, both respond, though with different sensitivities and at different speeds. The spread between China Large-Cap (FXI) and Japan / Nikkei (EWJ) captures the specific macro signal that flows through this relationship.
When does China Large-Cap (FXI) typically lead Japan / Nikkei (EWJ)?+
China Large-Cap (FXI) tends to lead Japan / Nikkei (EWJ) during rotation episodes between the two factor exposures. In those periods, moves in China Large-Cap (FXI) precede corresponding moves in Japan / Nikkei (EWJ) by days to weeks, depending on the transmission channel and the depth of each market.
How are China Large-Cap (FXI) and Japan / Nikkei (EWJ) historically correlated?+
Long-run correlation between China Large-Cap (FXI) and Japan / Nikkei (EWJ) varies by regime. Peers in the same asset class are highly correlated in direction, with the spread reflecting factor tilts and rotation dynamics. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the China Large-Cap (FXI)-Japan / Nikkei (EWJ) relationship.
What macro conditions drive divergence between China Large-Cap (FXI) and Japan / Nikkei (EWJ)?+
Divergence between China Large-Cap (FXI) and Japan / Nikkei (EWJ) typically arises from index reconstitution, mega-cap earnings surprises, or liquidity differences between the peers. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in China Large-Cap (FXI) or Japan / Nikkei (EWJ).
Is China Large-Cap (FXI) a hedge for Japan / Nikkei (EWJ)?+
Peers like China Large-Cap (FXI) and Japan / Nikkei (EWJ) do not hedge each other; both rise or fall with the shared asset class, and using the pair as a spread trade is different from using it as a hedge. Effective hedging requires matching the hedge to the specific risk being protected, and the China Large-Cap (FXI)-Japan / Nikkei (EWJ) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
Related Comparisons
Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.