Real gross domestic product shrank 2.3% on an annualized basis in the third quarter, compared with preliminary estimates of a 1.8% fall.
The European Union and Japan expressed confidence on Friday that they had secured limits on U.S. tariffs on pharmaceuticals, which President Donald Trump said he would impose next week at a rate of 100%.
Nikkei 225's rally, fueled by U.S. rate cut hopes, trade truces, and Japan's pro-investment policies, is boosting demand for Japan-focused ETFs like EWJ and JPXN.
Japan's leading trade negotiator said on Tuesday that the trade deal Tokyo agreed with the United States last week guarantees Japan will always receive the lowest tariff rate on chips and pharmaceuticals of all the pacts negotiated by Washington.
Japan's $550 billion investment package agreed in this week's U.S. tariff deal could help finance a Taiwanese firm building semiconductor plants in the U.S., Japan's top trade negotiator Ryosei Akazawa said on Saturday.
U.S. stocks are rising toward more records on Wednesday following a trade deal between the world's No. 1 and No. 4 economies, one that would lower proposed tariffs on Japanese imports coming to the United States.
I rate EWJ a Buy, driven by Japan's recovering economy, attractive valuation, and potential Yen appreciation. The main investment thesis is the highly devalued Yen, which I expect to appreciate as the BOJ tightens policy and the USD weakens. Consensus data shows EWJ offers 8% upside plus a 2% dividend, with accelerating EPS growth forecast through 2027.
Shares of General Motors , Ford Motor , and Jeep-maker Stellantis , some of the biggest automakers in the U.S., rallied on Wednesday after news of a trade deal that will reduce tariffs on imported Japanese cars, as investors saw it as a sign of more deals to come.
President Trump will get to decide where to invest Japanese money and the United States will keep 90 percent of the profits, the White House said.
Japanese stocks have outperformed global and US markets year-to-date, sparking interest as a potential alternative to US equities. Despite recent gains, Japan's 5-year performance lags behind the US, with a significant breakout only occurring in late April 2024. This breakout could signal the end of a year-long consolidation, presenting a potential profit opportunity for investors.
After a volatile April, Wall Street has stepped into the defamed May. While many may want to sell this month, some specific ETFs are likely to rise.
Things have been looking down for most stocks and ETFs so far this year. With Donald Trump recently criticizing Federal Reserve chair Jerome Powell over a lack of interest rate cuts, going as far as to refer to him as a “major loser” and “Mr.