Goldman Sachs ActiveBeta Japan Equity ETF

GSJY

Börsenwert 97,9 Mio. $

Japanese equities have undergone one of the most significant re-ratings in the developed world - but the story is evolving. The early phase was about leaner balance sheets and better capital management.

The rare, coordinated intervention by the U.S. and Japan last month to strengthen the yen caught markets by surprise, but it's important to separate currency mechanics from the investment case on the country. Interventions of this magnitude draw attention because the stakes extend beyond exchange rates.

The Bank of Japan is likely to take a breather this week to assess the effects of its latest move after raising its policy rate to the highest level in three decades.

Japanese stocks were lower in early trade as uncertainty over the Middle East conflict continues.

Japan's recovery from the “lost decades” of deflation and meager growth has been an on-again, off-again phenomenon. We believe that Japan should reach the “cruising altitude” phase this year and beyond, with a revised code to push companies to make better use of their cash and other assets in helping drive long-term growth.

Japan's central bank could look past Middle East uncertainty and raise interest rates if inflation becomes a bigger threat to the economy than the risk of slowing growth, Gov. Kazuo Ueda said.

Japan's government is preparing a supplementary budget of around 3 trillion yen, or about $19 billion, to replenish reserves and fund fuel and utility subsidies amid higher energy costs. Takaichi has said overall bond issuance will remain unchanged, even though the extra spending will be financed with deficit-covering bonds.

I am bullish on Japanese equities, emphasizing that Japan's high debt/GDP is offset by a robust asset base and pension fund scale. Japan's Government Pension Investment Fund and BOJ asset accumulation provide significant competitive advantages and underpin market resilience.

It's the age of the foreign equities ETF, with investors clamoring for shares of ex-U.S. offerings. That rush for international equities saw the category set records for inflows in January, with the overall space off to a strong start in the new year.

Nikkei 225 struggles below 50,000 as upside momentum fades. Daily RSI drifts into neutral territory, signaling consolidation.