Japan’s exchange traded fund (ETF) appears to have reversed the downtrend it’s been on of late, but other Asian economies may still be more appealing.

iShares MSCI Japan (NYSEArca: EWJ) is up 4.8% in the last month, a decent turnaround for a country often seen as one of the more troubled developed markets. But is Japan a place worth investigating at this point? [Asia ETFs: Fast Growth May Have Consequences.]

The Japanese economy is struggling with a number of negative factors, including an aging population, a high rate of savings, a too-strong currency and persistent deflation. [Japan ETFs: Don’t Call a Turnaround Just Yet.]

That aside, Japan’s economy surged more than the government predicted it would in the third quarter, jumping 4.5% on an increase in capital spending. And it looks like consumers are getting freer with the spending, too.

The temptation might be to look for other areas in Asia, but in the last month, few have performed much better than Japan – including the powerhouse emerging markets. Market Vectors Indonesia (NYSEArca: IDX) is down 6% and iShares MSCI Thailand (NYSEArca: THD) is down 0.5%.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.