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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.
The BOJ also cuts its growth forecasts for the fiscal year 2026 to 0.5% from 1%. The bank raised its core inflation forecasts to 2.8% from 1.9%.
The iShares MSCI Japan Value ETF has delivered solid gains so far in 2026, boosted by attractive valuations and lower political risk in Japan. While recent energy price volatility is likely to negatively affect earnings growth at cyclical Japanese companies, I rank EWJV a Buy for investors focused on long-term total returns. EWJV holdings trade at a steep discount relative to the S&P 500, indicating a significant margin of safety as long as the Japanese economy does not enter a recession.
Japan's Nikkei 225 hits a record as Sanae Takaichi's election win fuels stimulus hopes, lifting investor appetite for Japanese ETFs like EWJ.
Osaic Holdings Inc. raised its stake in shares of iShares MSCI Japan Value ETF (NASDAQ: EWJV) by 31.8% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 72,595 shares of the company's stock after acquiring an additional 17,506