The Bank of Japan’s money printing spree has helped devalue the Japanese yen, which has depreciated 16% against the dollar and 14% against the euro so far this year. The CurrencyShares Japanese Yen Trust (NYSEArca: FXY) is down 15.3% year-to-date.
Meanwhile, the Nikkei 225 Stock Average has jumped 45% year-to-date and recently topped 15,000. [Yen-Hedged Japan ETFs Soar as Nikkei Tops 15,000]
“Some say Japanese stocks may be too high but the GDP shows the strength of economy may justify the uptick trend in stocks,” Shinke added. “I see a chance that Japan will have even better growth this quarter.”
The non-yen hedged ETF, iShares MSCI Japan (NYSEArca: EWJ), is up 24.1% so far this year. The yen-hedged DXJ has increased 40.3% year-to-date and DBJP gained 43.6%.
WisdomTree Japan Hedged Equity Fund
For more information on Japan, visit our Japan category.
Max Chen contributed to this article.