iShares MSCI Japan ETF

EWJ

Market cap $15.8B

Japan's recent bond yield surge stems from persistent inflation, GDP contraction, and a $135.5B stimulus amid high government debt. Rising yields and domestic bondholder selling have fueled volatility, but Japan's largely domestic debt limits risk of capital flight.

Real gross domestic product shrank 0.4% on a quarter-over-quarter basis, further complicating the timeline of the central bank's next interest-rate hike.

On an annualised basis, Japan's third quarter GDP slipped 1.8%, a softer fall than the 2.5% expected.

Nikkei closes at 51,063, extending gains for a second session. Manufacturing confidence hits a four-year high as exports strengthen.

Keep Japanese ETFs like EWJ, DXJ, and EWJV in your watchlist as investors pivot from volatile U.S. markets to Japan's surging equities.

Global equities strategies are having a moment this year. The SPDR S&P 500 ETF in isolation looks strong, posting an 18.3% year-to-date gain.

Tony Coniaris, Oakmark co-CIO of international equities, joins 'Squawk on the Street' to discuss the role international equities play in diversification, the performance gap between the U.S. and abroad and much more.

Japan's largest labour union group said on Thursday it would seek wage hikes of 5% or more in 2026, aiming for bumper pay raises for the fourth consecutive year to counter inflation despite headwinds from U.S. tariffs.

Global money managers are circling back to Japan's stock and debt markets, drawn by the promises of its new reflationist government and a desire to diversify from pricier U.S. and European markets.

Japanese stocks surged to fresh highs on Monday, with the Nikkei 225 jumping 3.37% to close at 49,185.5 and the broader Topix gaining 2.46% to end at 3,248.45.