Japan’s Stock Rally Isn’t Over. But Patience Is Key.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 07 2024
0mins
Source: MarketWatch
- Japanese Stock Rally: The easy part of the Japanese stock rally seems to be over after a significant jump in the iShares MSCI Japan exchange-traded fund from late October to late March.
- Factors Driving the Rally: The rally was driven by Tokyo's potential to break a three-decade deflationary cycle, attracting global investors to low-multiple equities.
- Longer-Term Gains: While the rally has tapered off by 4% since late March, some factors that fueled it may still lead to longer-term gains.
- Subscription Requirement: To access more details on this topic, readers are prompted to subscribe or sign in for continued reading.
Trade with 70% Backtested Accuracy
Analyst Views on EWJ
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Japan's Nikkei Index Surges 4.5% Past 56,000; Korea's KOSPI Index Increases 5% to 5,800, Boosting Related ETFs with EWJ Up 3% and EWY Up 7%; DRAM Stocks, Heavily Influenced by Samsung and SK Hynix, Soar 10%.
Japan's Nikkei Performance: Japan's Nikkei share average has risen by 4.5%, surpassing 56,000 points.
KOSPI Index Growth: The Korean KOSPI index has increased by 5%, reaching 5,800 points.
ETFs Surge: Related ETFs have seen significant gains, with EWJ rising by 3% and EWY climbing by 7%.
DRAM Stocks Rise: DRAM stocks, heavily weighted in Samsung and SK Hynix, have soared by 10%.
See More
Japan's Market Proves More Robust Than Anticipated: 3 Stocks to Watch.
- Investor Behavior: Investors have withdrawn from Japanese assets following the onset of the Iran War a month ago.
- Potential Opportunities: If the conflict de-escalates in the coming weeks, it may present buying opportunities for investors.
See More
The Iran Conflict Highlights Taiwan Risks: Implications for Your Investment Portfolio.
- Geopolitical Risks: The ongoing war in Iran and the blockage of the Strait of Hormuz highlight significant geopolitical risks affecting global markets.
- Impact on Tech Investments: Investors in tech-heavy portfolios, particularly those focused on artificial intelligence, should be wary of the potential risks associated with Taiwan's geopolitical situation.
See More
Tech Stocks Decline Due to AI Concerns; European Markets Could Offer Greater Stability.
- Investor Concerns: Investors are worried about a weakening dollar, prompting them to diversify their portfolios away from the U.S. market.
- Shift to Developed Markets: Over the past year, there has been a noticeable trend of moving investments into other developed markets as a strategy for risk management.
- AI-Related Equities Impact: The recent volatility in AI-related equities in the U.S. has further motivated investors to seek alternative investment opportunities.
- Portfolio Insulation: Diversifying into different markets is seen as a prudent approach to insulate portfolios from potential downturns in the U.S. economy.
See More
Takaichi's Victory in Japan: Facing the Challenges Ahead.
Election Victory: Japanese Prime Minister Sanae Takaichi led her Liberal Democratic Party to its largest election victory, securing a two-thirds majority in the Lower House of parliament.
Constitutional Amendments: This majority enables the party to override Upper House vetoes and pursue amendments to Japan's pacifist constitution.
See More
Takaichi of Japan May Trigger a Reaction from Bond Vigilantes
- Political Influence: The presence of Liz Truss is being felt in Japan, highlighting the impact of female leadership in global politics.
- Emerging Leadership: Sanae Takaichi, another female politician, is noted for bringing this influence to Japan.
See More
Japan's Nikkei Index Surges 4.5% Past 56,000; Korea's KOSPI Index Increases 5% to 5,800, Boosting Related ETFs with EWJ Up 3% and EWY Up 7%; DRAM Stocks, Heavily Influenced by Samsung and SK Hynix, Soar 10%.
Japan's Nikkei Performance: Japan's Nikkei share average has risen by 4.5%, surpassing 56,000 points.
KOSPI Index Growth: The Korean KOSPI index has increased by 5%, reaching 5,800 points.
ETFs Surge: Related ETFs have seen significant gains, with EWJ rising by 3% and EWY climbing by 7%.
DRAM Stocks Rise: DRAM stocks, heavily weighted in Samsung and SK Hynix, have soared by 10%.
See More
Japan's Market Proves More Robust Than Anticipated: 3 Stocks to Watch.
- Investor Behavior: Investors have withdrawn from Japanese assets following the onset of the Iran War a month ago.
- Potential Opportunities: If the conflict de-escalates in the coming weeks, it may present buying opportunities for investors.
See More
The Iran Conflict Highlights Taiwan Risks: Implications for Your Investment Portfolio.
- Geopolitical Risks: The ongoing war in Iran and the blockage of the Strait of Hormuz highlight significant geopolitical risks affecting global markets.
- Impact on Tech Investments: Investors in tech-heavy portfolios, particularly those focused on artificial intelligence, should be wary of the potential risks associated with Taiwan's geopolitical situation.
See More
Tech Stocks Decline Due to AI Concerns; European Markets Could Offer Greater Stability.
- Investor Concerns: Investors are worried about a weakening dollar, prompting them to diversify their portfolios away from the U.S. market.
- Shift to Developed Markets: Over the past year, there has been a noticeable trend of moving investments into other developed markets as a strategy for risk management.
- AI-Related Equities Impact: The recent volatility in AI-related equities in the U.S. has further motivated investors to seek alternative investment opportunities.
- Portfolio Insulation: Diversifying into different markets is seen as a prudent approach to insulate portfolios from potential downturns in the U.S. economy.
See More
Takaichi's Victory in Japan: Facing the Challenges Ahead.
Election Victory: Japanese Prime Minister Sanae Takaichi led her Liberal Democratic Party to its largest election victory, securing a two-thirds majority in the Lower House of parliament.
Constitutional Amendments: This majority enables the party to override Upper House vetoes and pursue amendments to Japan's pacifist constitution.
See More
Takaichi of Japan May Trigger a Reaction from Bond Vigilantes
- Political Influence: The presence of Liz Truss is being felt in Japan, highlighting the impact of female leadership in global politics.
- Emerging Leadership: Sanae Takaichi, another female politician, is noted for bringing this influence to Japan.
See More
