Goldman Sachs ActiveBeta Japan Equity ETF

GSJY

Market cap $81.9M

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.

The Nikkei 225 falls to 49,303 as rate-hike odds for December 19 approach 80%. Electronics, pharma, and industrials lead declines as liquidity expectations tighten.

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

Solid growth and ongoing shareholder-friendly reforms are driving Japanese equity gains, keeping us overweight. We see the AI theme playing out globally.

As the global private equity industry took tentative steps toward recovery in 2024, Japan raced ahead. The value of private equity investment in Japan jumped nearly 41% over the prior-year total in 2024, far outpacing the 25% year-over-year gain in global private equity deal value, according to S&P Global Market Intelligence data.

Today's data were a mixed bag, but the Bank of Japan will pay more attention to the sharp rise in Tokyo's inflation. Tokyo consumer prices rose more than expected to 2.6% YoY (vs 2.2% in July, 2.3% market consensus).