Investors favour Japan's rising sun over China's fading star

Long Japan, short China. If there is a general macro, relative value trade playing out right now, it might be that as the contrasting fortunes of Asia's economic and financial behemoths become starker by the day. China's economy is rapidly losing steam and investor appetite for Chinese assets is cooling accordingly, while Japan's growth is accelerating and its main stock markets are at or flirting with their highest levels in 33 years. Some of these trends are not new – overseas investors have been selling Chinese bonds for over a year and deteriorating U.S.-China relations have hung over investors for…