1. EWJ surged due to U.S.-Japan trade deal reducing auto tariffs to 15%. 2. Chart indicates EWJ broke resistance but may pull back if momentum wanes. 3. Japan's political instability may affect investment sentiment in EWJ. 4. Long-term factors like improved governance and weak yen favor EWJ. 5. Investments from Japan total $550B, boosting growth potential.
The trade deal and investment package enhance economic prospects, promoting overall growth for Japanese equities, including EWJ. Historically, trade agreements leading to lower tariffs have positively impacted equity market sentiment, as seen after the USMCA implementation.
The article discusses significant economic developments relevant to EWJ. The reduction of tariffs and large investment support the case for higher EWJ valuations, making this a fundamental news piece.
The effects of structural changes like trade deals and governance improvements typically materialize over time. Japan's corporate governance reforms and stability issues require ongoing assessment but have potential for sustained positive impact.