Japan PM sees no need for now to compile extra budget
Japanese Prime Minister Sanae Takaichi said on Monday she did not see a need "for now" to compile a supplementary budget aimed at cushioning the economic blow from the Middle East conflict.
Japanese ETFs to Buy as Nikkei 225 Crosses New Record High
Nikkei 225 hits 59,000 as BOJ dovish bets and a tech surge ignite Japan stocks - here's why ETFs like EWJ are in focus now.
Bet on These Japanese ETFs as Nikkei Soars to Record High
Japan's Nikkei 225 hits a record as Sanae Takaichi's election win fuels stimulus hopes, lifting investor appetite for Japanese ETFs like EWJ.
BBJP: The Rate Check Is A Net Negative For The Index
The rate check demonstrates yet another tool in the intervention toolbox that can keep the JPY from falling too far amid opposing monetary and fiscal objectives. While it may be essential for the Japanese government to prevent issues with their increasingly marginal currency, it's a net negative for an export led index, such as the one that JPMorgan BetaBuilders Japan ETF tracks. Japanese valuations are also closer to the upper range of the PE ratio range in the last 10 years.
BBJP: Better Than EWJ, But Not Advisable To Pursue Now
JPMorgan BetaBuilders Japan ETF tracks the Morningstar Japan Target Market Exposure Index and provides exposure to 190 Japanese stocks, most of which are giant and large caps. BBJP has been taking share from its larger peer EWJ, and we examine what is driving this. Despite BBJP's advantages against EWJ, its valuations are not cheap when measured against developed markets.
BBJP: Yen Declines Generally Benefit Japan, But Tariffs Hit Most Allocations
I prefer BBJP over EWJ for its lower expense ratio and similar sector exposures, making it a more efficient Japan ETF choice. Tariff risks threaten Japan's export-heavy sectors, especially autos and industrials, despite some natural hedging benefits from an also weakening Yen. These natural hedging benefits are affected by the significant US exposure in geographic mixes, but also the likelihood of harsher competition in remaining markets under reconfigured trade flows.
BBJP: A Better Performing Japan Play
BBJP is a good way to track Japan's markets. Its sector mix is different from what you see in the US. It's cheap and has outperformed other notable large Japan proxies.
What's The Next Step For The Bank of Japan?
In March, the Bank of Japan abolished its 8-year-old negative interest rate policy, hiking rates for the first time in 17 years by raising its benchmark rate to 0-0.1%. To combat inflation while also avoiding an excessive surge in interest payments, the BOJ is considering passive quantitative tightening.
Mixed Japanese Data Supports BoJ's Policy Normalization
We'd rather downplay the weaker-than-expected manufacturing data and focus on a solid recovery in retail sales and a reacceleration in inflation, which will be welcomed by the Bank of Japan. Inflation has been quite choppy due to various government programmes and utility prices.
What Has Led To Japan's Come-Back?
By end-April 2024, Japanese equities had outperformed the FTSE All-World index over 12 months and in the year to date. Japan has undertaken significant structural corporate reforms in recent years.
