iShares MSCI Japan ETF

EWJ

Market cap $22.4B

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

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.

Ayano Sato pledged to carefully watch the impact of a weak yen on prices, though she didn't give any clear hints on her monetary policy stance.

2026 is more than halfway done, somehow, after a whirlwind start defined by volatility. Geopolitical risk and AI bubble risk were the headline drivers, even as portfolios were rewarded by strong tech earnings.

Japanese equities have hit all-time highs at a pace not seen since 1989.