Japanese asset managers are increasing efforts to promote domestic equities abroad as investors move away from Chinese stocks due to trade tensions and economic challenges, Nikkei Asia Review reported Wednesday.

Sumitomo Mitsui Trust Asset Management (TYO:8309) will open its first Asian office outside Japan in Singapore to market Japan equity funds, the report said.

Meanwhile, First Sentier Investors and Asset Management One are expanding their offerings in Europe, Australia, and the US, responding to growing demand for Japanese equities, according to the report.

Japanese stocks are gaining appeal as alternatives to Chinese assets, boosted by strong earnings and Tokyo Stock Exchange reforms, the report said.

"Demand is especially strong from Middle Eastern investors," a Japanese asset manager reportedly said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)