Japan
Hi James Thoughts on Japan and Japan facing ETFs. Enjoying the reports, always look forward to the Weekend Q & A Cheers Phil
The Latest Q&A
Answer
Hi Phil,
Japanese stocks are currently in a bull market, alongside many of their global peers. With Sanae Takaichi taking the reins as Prime Minister and her preference for proactive and expansionary fiscal measures, including stimulus, tax relief, and subsidies aimed at boosting demand and supporting households, we have a promising outlook for Japanese equities. At the same time, her emphasis on responsible fiscal management, including monitoring debt-to-GDP levels and market reactions, adds a reassuring layer of prudence.
Following her surprise election win the Japanese Nikkei 225 surged nearly +5% in just two trading sessions, reaching record highs. The surge reflects investor optimism about her pro-stimulus policies and potential economic reforms. Industries such as pharmaceuticals, automotive manufacturing, engineering, semiconductors, and defence saw noticeable gains.
The market’s reaction concurs with how we see her impact on risks assets, but she does have a tough job balancing interest rates, inflation and economic growth in a country with a declining population. The iShares MSCI Japan ETF (IJP) is an ASX traded ETF we like which provides investors with exposure to Japanese equities. It tracks the performance of the MSCI Japan Index, which includes large- and mid-cap companies across various sectors in Japan. We like the IJP ETF at current levels while leaving some “ammo” to buy dips if they occur.
- We are bullish the ASX-traded iShares MSCI Japan ETF (IJP) into 2026.
