Bank of America strategist Michael Hartnett has advised investors to buy into any dips in Chinese stocks ahead of an anticipated announcement of new fiscal stimulus from the Chinese government. This recommendation comes as recent data indicates a record inflow into China equity funds, with investors showing increased confidence in the country's economic policies. In contrast, Japan has experienced significant outflows, with a reported $8.8 billion leaving its stock market, marking the largest weekly outflow in history. The broader market context includes easing expectations for U.S. Federal Reserve rate cuts and surging bond yields, which have led to a narrowing of U.S. credit spreads to multi-year lows. Overall, the market sentiment reflects a shift in focus towards emerging markets, particularly China, as investors react to changing economic conditions.