Despite the Weakening Yen, Japan's Stock Market Is Outperforming. Here's How to Invest.
Japan's economy and stock market are booming.
Overview
The U.S. Treasury recently intervened in currency markets to prop up the Japanese yen, which hit a four-month low against other major world currencies.
The Japanese currency has been weakening against the dollar for years and hit a 40-year low against the greenback in July. That's primarily because the Bank of Japan has kept its benchmark interest rate low for years. Global capital tends to flow to countries with higher interest rates, so currency traders have been selling the yen to buy the dollar, pushing the yen lower.
Details
Yet despite the weakening yen, the Japanese stock market is doing very well this year. That market is up about 19% so far in 2026, as measured by the iShares MSCI Japan Index Fund (NYSEMKT: EWJ). That handily beats the S&P 500 index, which is up about 13% year to date.
Source
Originally published at www.fool.com.