iShares MSCI Japan ETF

EWJ

Market cap $19.2B

Inflation in Japan's capital cooled below the central bank's 2% target for the first time in over a year, but the slowdown is unlikely to derail further interest rate hikes.

Nikkei 225 hits 59,000 as BOJ dovish bets and a tech surge ignite Japan stocks - here's why ETFs like EWJ are in focus now.

With deflation now firmly in the rearview mirror, the path is clear for the Bank of Japan to raise interest rates sooner rather than later, said policy board member Hajime Takata.

JGBs rose in price terms in the morning Tokyo session, aided by government data released earlier showing slowing inflation in Japan.

The 1.5% figure ended a run of 45 straight months that the inflation rate has been above the Bank of Japan's 2% target. Government tax relief and fading food costs were expected to push CPI below 2% in 2026.

Consumer inflation, excluding volatile fresh food prices, climbed 2.0% in January from a year earlier, compared with December's 2.4% rise.

Japan's $36B U.S. investment targets energy, exports and minerals. ETFs like XLE could ride the industrial boost from this landmark pledge.

The iShares MSCI Japan ETF has been one of the best single-country developed-markets ETFs for over the past several years. Prime Minister Sanae Takaichi's resounding victory in recent snap elections confirms investors like her economic policies.

Japan ETFs rally as "Takaichi Trade" lifts Nikkei to record highs. Stimulus hopes, reform optimism and growth bets drive strong gains across funds.

Japan's Nikkei 225 hits a record as Sanae Takaichi's election win fuels stimulus hopes, lifting investor appetite for Japanese ETFs like EWJ.