WisdomTree Japan Hedged Equity Fund

DXJ

Market cap $7.19B

iShares MSCI Japan ETF (NYSEARCA:EWJ) is the default way for American investors to gain exposure to Japan.

Our global markets watchlist tracks nine prominent indexes from economies around the world.

Navigating the macroeconomic landscape in the first half of 2026 has been a study in contrasts. Markets have marched toward all-time highs even as historic valuation metrics flash warning signs behind the scenes.

Lately, the land of the rising sun has been the land of the falling yen. While single-country equity exposure to Japan has provided investors with relative outperformance year-to-date (YTD), they appear to be better off shedding the currency drag.

The Nikkei 225 Index traded sideways on July 8 as artificial intelligence (AI) stocks rebounded after Tuesday's sharp sell-off. The index was trading at 39,770, about 7% below its highest level this year.

JGBs fell in price terms in early Tokyo trade amid concerns over Japan's fiscal policies.

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

Reports that Japan's Ministry of Finance is abandoning its custom of telegraphing intervention risks and may instead enter the FX market to surprise market participants, has traders on edge.

The Nikkei 225 Index has sold off recently as investors book profits following its strong rally to the all-time high of 72,781 in June. It was trading at 69,190 on Thursday, up by 37% this year.

One of the persistent themes in the first half of 2026 has been international exposure. With potentially overstretched valuations in U.S mega-cap names and higher-for-longer inflation devaluing the U.S. dollar, more investors have been looking overseas for a greater opportunity set.