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Mahjabeen Zaman from ANZ Bank thinks the BOJ will hike rates by 25 bps in its upcoming meeting, but it will be difficult for the BOJ to be more hawkish than other central banks due to fiscal difficulties, which might be disappointing to people who want the yen to strengthen more.
The yen's surge may be signaling something much bigger than another carry-trade scare: the price of Japanese capital is changing. For the first time in decades, rising JGB yields are making it increasingly rational for Japanese investors to keep more money at home.
The Japanese economy notched a third consecutive quarter of growth, but at a slower pace as household and corporate spending weakened.
EWJV, which focuses on over 100 value-style Japanese large and mid-caps, has outperformed other style-agnostic Japanese stocks, developed market stocks, and global stocks by 1.4-1.9x over the past year. Despite strong price appreciation, EWJV's valuations look compelling, while its growth prospects look better than most of these competing counters. EWJV's heightened financial sector exposure also bodes well as credit growth is at 5-year highs, NIMs are poised to see a further uplift, and dealmaking activities are going to ramp up.
Japanese stocks were higher following a recovery in U.S. technology stocks overnight.
The BOJ lifted rates to a 31-year high as inflation risks persist. Here are Japan-focused ETFs that could benefit from the policy shift.
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.
The Bank of Japan kept its policy rate at 0.75% but raised inflation forecasts and trimmed growth views as it warned about the impact of a spike in energy prices.