Japan's so-called "Abenomics" and its territorial row with China have prompted a shift in Japanese money away from the world's second largest economy and into the Philippines and its Southeast Asian neighbors, according to US banking giant Bank of America. In a report released Thursday, the Bank of America-Merril Lynch said the conflict between Asia's two economic powerhouses has hit a turning point to the benefit of smaller Asian economies. Japan and China are fighting over the Diayou Islands or Senkaku, with naval vessels of both parties playing cat and mouse around islets since Japan's government bought the formerly privately owned territory in 2012.

Territorial spat turns in Philippines' favor. (2014, May 16-17). BusinessWorld, p. S2/1-8.