iShares MSCI Japan ETF

iShares Currency Hedged MSCI Japan ETF

HEWJ tracks an index of large- and mid-cap Japanese stocks, while fully hedging out its exposure to the yen relative to the US dollar.

JPMorgan BetaBuilders Japan ETF

Xtrackers MSCI Japan Hedged Equity ETF

WisdomTree Japan SmallCap Dividend Fund

WisdomTree Japan Hedged Equity Fund

WisdomTree Japan Hedged SmallCap Equity Fund

iShares MSCI Japan Value ETF

First Trust Japan AlphaDEX Fund

Franklin FTSE Japan Hedged ETF

Franklin FTSE Japan ETF

Goldman Sachs ActiveBeta Japan Equity ETF

iShares JPX-Nikkei 400 ETF

iShares MSCI Japan Small-Cap ETF

Today's data were a mixed bag, but the Bank of Japan will pay more attention to the sharp rise in Tokyo's inflation. Tokyo consumer prices rose more than expected to 2.6% YoY (vs 2.2% in July, 2.3% market consensus).

Japan: Hotter Than Expected Inflation, Output Rebound Should Support The BoJ's Policy Normalization

Japan's economy enjoyed a strong second quarter, according to official data, which corroborates recent robust survey data. Gross domestic product rose 0.8% in the three months to June, according to initial estimates from the Cabinet Office.

Third Quarter Economy Signals Sought From Flash PMI Data After Japan GDP Shows Rebound

The Nikkei suffered its worst ever one-day slump this morning. There are plenty of technical efforts, and it might have been a perfect storm of slightly negative data that agglomerated together into poor sentiment, but Sahm's Rule looms. We think the primary driver of the declines in Japan, at least to the extent that they can be justified, comes down to the higher unemployment in the US.

HEWJ: Black Monday Declines Mean Selectivity Is Key

Invesco Currencyshares Japanese Yen Trust

ProShares Ultra Yen

ProShares UltraShort Yen

The “real” policy rate is massively negative, with the new policy rate of 0.25% far below Core CPI of 2.6%. When QT reaches about ¥3 trillion per month in 2026, it would represent a reduction of its JGB holdings of about 0.5% per month.

BoJ Hikes By 25 Bps And Starts QT: Too Little Too Late, But In Right Direction To Prop Up The Plunging Yen

Japan has been struggling for some time to generate enough velocity in inflation to escape the gravitational pull of deflation. The story for the rest of 2024 and into 2025 is now centered on whether inflation will be sustained at the BOJ's 2% target.

Escape Velocity: Japan's Drift Toward Sustained Inflation

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.

What's The Next Step For The Bank of Japan?

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.

Mixed Japanese Data Supports BoJ's Policy Normalization

The iShares Currency Hedged MSCI Japan ETF has successfully taken advantage of the rise in Japanese indices while avoiding the depreciation of the Yen. The ETF benefits from a weak Yen, particularly in the automotive and industrial sectors, but imported inflation and consumer sentiment are hurting domestic demand. The carry trade is the key activity that is weakening the Yen even further, and it will be difficult to get that trade to unwind. Sustainable Japanese inflation is needed.

HEWJ: The Yen Hedge Is Still Paying Off

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.

What Has Led To Japan's Come-Back?

A weak yen is unlikely to end the positive momentum in Japanese equities. The drivers of the recent rally remain, so we stay overweight Japanese stocks.

Weak Yen Unlikely To End Japan's Rally

By Christopher Gannatti, CFA Global Head of Research Key Takeaways Japan's equity market reached a 35-year record high in the first quarter of 2024, driven by the weakness of the yen against the U.S. dollar.

How to Experience a 35-Year Record High in Japan

Invesco Aerospace & Defense ETF

Global X Interest Rate Hedge ETF

SPDR Portfolio S&P 500 High Dividend ETF

Technology Select Sector SPDR Fund

With April turning out downbeat, Wall Street will be striving hard to make an ascent in May, but the operating environment is not all smooth this time around.

What "Sell in May"? 5 ETFs That Could Defy the Adage

March activity data was a mixed bag in Japan. Weak manufacturing weighed on growth in the first quarter of the year.

Japanese Industrial Production Strengthens As Retail Sales Disappoint

Inflation slowed down in March but underlying inflationary pressures are still alive. The BoJ's pause at its next week's meeting is widely expected but markets will pay more attention to the BoJ's quarterly outlook report.

Cooler Inflation Ahead Of The Bank of Japan Meeting

Japan's equity benchmark, the Nikkei 225 Index, has been on a tear in 2024, eclipsing its previous high set back in 1989. As of early April, the index is hovering near 40,000. Solid economic growth, a revamp in the country's tax-free stock investment program and corporate governance reform have helped propel Japanese equities to record highs.

Can Japan's Stock Market Continue Its Record-Setting Run?

The Bank of Japan is set to normalise monetary policy when certain conditions are met, namely inflation, positive real cash earnings, and a recovery in domestic demand growth. We expect the window for normalisation to open from July for about a year before inflation begins to fall below 2%.

The Bank of Japan's New Path Ahead

Goldman Sachs Physical Gold ETF

GraniteShares Gold Shares

Invesco DB Precious Metals Fund

SPDR Gold Trust

Credit Suisse X-Links Gold Shares Covered Call ETN

SPDR Gold MiniShares Trust

Aberdeen Standard Precious Metals Basket Trust

iShares Gold Trust

iShares Gold Strategy ETF

iShares Gold Trust Micro

FT Cboe Vest Gold Target Income ETF

VanEck Merk Gold Trust

Sprott Physical Gold Trust

Sprott ESG Gold ETF

Aberdeen Standard Gold ETF Trust

The Bank of Japan's historic move to end the country's negative interest rate policy after nearly two decades triggered a jolt upward to new all-time highs for gold against the yen. The BoJ announced it will now hold short-term rates at a still-accommodative 0% to 0.1% and is getting rid of its yield curve control program and ETF purchases.

The End Of Japan's Negative Interest Rates: What It Means For Gold

Japan's private sector picked up growth momentum into the end of the first quarter, according to flash PMI data.

Japan Flash PMI Signals Accelerating Growth Momentum And Rising Inflation In March 2024

Kazuo Ueda becomes Governor of the Bank of Japan, continuing the loose monetary policies implemented by his predecessor. The BOJ raises short rates from -0.1% to 0.1%, becoming the last central bank to exit a Negative Interest Rate Policy.

End Of An Era - Bank of Japan Reverses Negative Interest Rate Policy

The Bank of Japan raised interest rates for the first time since 2007 and has eliminated the yield curve control framework. According to the central bank, the virtuous cycle between wages and prices was assessed to have come into sight, bringing the 2% inflation target within a sustainable and stable possibility by the end of fiscal year 2025.

Flash Insights: Bank of Japan - A 'Watchful' Adjustment

The Bank of Japan has now ended decades of unconventional and aggressive monetary easing. Strong wage negotiation results played a crucial role in today's move.

Bank of Japan Pivot Proves Underwhelming For Markets

Japanese stocks have been on the hottest ride over the past several months, with the Nikkei 225 Index now breaching the 40,000 milestone for the first time.

Japan Nikkei Tops 40,000: Currency-Hedged ETFs Win

Japan's private sector activity broadly stagnated in February according to flash PMI data, attributed to a combination of slowing services activity growth and an acceleration in manufacturing output contraction. A sharper decline in goods new orders, underpinned by sluggish demand conditions, also largely offset improved demand for services.

Flash PMI Signal Cooling Inflation And Stagnating Private Sector Activity In Japan

ProShares Ultra MSCI Japan

Matthews Japan Active ETF

SPDR S&P 500 ETF Trust

Japan ETFs have been surging over the past year on several factors and beating the S&P 500.

Japan ETFs Beating S&P 500: More Growth in the Cards?

iShares MSCI All Country Asia ex Japan ETF

SmartETFs Asia Pacific Dividend Builder ETF

iShares Asia 50 ETF

Global X FTSE Southeast Asia ETF

JPMorgan BetaBuilders Developed Asia EX-Japan ETF

iShares Asia/Pacific Dividend ETF

iShares MSCI Emerging Markets Asia ETF

iShares MSCI Philippines ETF

iShares MSCI Pacific ex-Japan ETF

iShares MSCI Australia ETF

iShares MSCI Malaysia ETF

iShares MSCI Singapore ETF

iShares MSCI Taiwan ETF

iShares MSCI South Korea ETF

Franklin FTSE Australia ETF

Franklin FTSE Asia ex Japan ETF

Franklin FTSE South Korea ETF

Franklin FTSE Taiwan ETF

First Trust Asia Pacific ex-Japan AlphaDEX Fund

SPDR S&P Emerging Asia Pacific ETF

Xtrackers International Real Estate ETF

iShares Core MSCI Pacific ETF

Direxion MSCI Daily South Korea Bull 3X Shares

iShares MSCI Thailand ETF

Global X MSCI Vietnam ETF

VanEck Vectors Vietnam ETF

Vanguard FTSE Pacific ETF

While the China macro story of ongoing transition is a headwind to the rest of Asia, there is more to the region's economic health than this.

News for iShares Currency Hedged MSCI Japan ETF ETF (HEWJ)