ETF Trends
ETF Trends

Traders will keep a close eye on iShares MSCI Japan Index Fund (NYSEArca: EWJ) in U.S. trading Friday after the government said the economy is in trouble after the massive earthquake and tsunami.

The Nikkei Stock Average closed up by nearly 2% in Japan as stocks rose despite an aftershock Thursday that triggered tsunami warnings. The Japan exchange traded fund (ETF) ended Thursday lower as its share price fell back into single digits.

Japan’s economy is in a “severe condition” and a quick recovery isn’t expected following a triple disaster triggered by the March 11 earthquake, the government said, according to Reuters.

The $7 billion iShares MSCI Japan was down nearly 13% for the month ended April 7, according to Morningstar.

iShares MSCI Japan

Japan’s currency, the yen, has also been under pressure since mid-March.

CurrencyShares Japanese Yen Trust (NYSEArca: FXY)

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

The opinions and forecasts expressed herein are solely those of John Spence, 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.