Nikkei 225 has risen three trading sessions in a row since Prime Minister Suga’s announced last Friday his plan to step aside after just a year in office. Suga’s sudden decision came after he had spent days trying to salvage a historically unpopular administration, who according to several polls, failed to manage the coronavirus pandemic. Since last Friday’s opening session, the Nikkei 225 is up by 4.5%.
Japanese shares climbed on hopes the next prime minister would boost the economic recovery, with at least two contenders for the position, former Foreign Minister Fumio Kishida, supporting more spending to soften the pandemic’s blow and Taro Kono, the minister leading Japan’s COVID vaccination drive and is now emerging as another challenger. Kono is already topping opinion polls as the preferred leader among the public.
Amidst the optimism, investing in Japan may represent an opportunity for some investors who seek to gain exposure to the third richest country by GDP. Japan ETFs offer access to Japanese Equities with diversification to different sectors and industries. One of them would be iShares MSCI Japan ETF (EWJ), the largest Japan Equities ETF with $12.46 billion in assets under management. EWJ was up 2.84% following Suga’s announcement.
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