Japan's Exports Accelerate But Middle East Risks Cloud Outlook
Japan's exports grew at a faster-than-expected pace in April, as a weak yen and resilient global demand offset the negative impact of Middle East tensions.
Japan's economy grows at an annualized 2.1% rate in the first quarter, beating expectations
GDP rose by 2.1% on an annualised basis, compared with Reuters-polled analysts' average estimate of 1.7%, and against the 1.3% in the previous quarter. On a quarter-on-quarter basis, the economy expanded 0.5%, compared with estimates of 0.4%, and improving from the 0.3% expansion at the end of 2025.
Japan's Record Run: The Land of the Rising Returns
Japan equities are riding a historic surge, with the Nikkei 225 topping 62,000 for the first time. While the S&P 500 and Nasdaq continue to notch records, Japan is carving out its own bull market, driven by AI-fueled tech gains, structural corporate reforms, and a transformative era of economic policy.
Nikkei 225 crosses 62,000 as Asian markets rally on relief hopes
Asian markets opened Thursday with a powerful relief bid, as investors leaned into hopes that tensions in the Middle East may ease enough to keep the Strait of Hormuz open. Japan set the tone, with the Nikkei 225 vaulting through 62,000 for the first time, while broader regional equities also pushed higher.
Yen Consolidates; Downside Likely Limited by Possible FX Intervention
The yen consolidated against other G-10 and Asian currencies on the first day of trading in Tokyo following Japan's long Golden Week holidays.
Japan just put a ‘Band-Aid' on the yen. Why high oil prices could soon rip it off.
Concerns about high oil prices are adding to inflation fears in Japan, as the BOJ just moved to rescue the yen from a roughly 40-year low.
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.
