“The stock market ought to maintain its uptrend, and Japan could enter a virtuous circle that would enable Japanese corporates to stop deleveraging and lead Japan to escape the sluggish domestic demand and deflationary environment that has plagued it for so long,”according to Societe Generale.
The U.S. dollar is trading at 104.31 Yen. The CurrencyShares Japanese Yen Trust (NYSEArca: FXY) has declined 15.6% over the past year.
As the yen weakens and the Japanese economy expands, investors can take a look at yen currency-hedged Japan equity ETFs, like DXJ and db X-trackers MSCI Japan Hedged Equity Fund (NYSEArca: DBJP), which jumped 35.5% and 43.6%, respectively, over the past year. In comparison, the iShares MSCI Japan ETF (NYSEArca: EWJ), a non-currency hedged ETF, rose 24.2%.
WisdomTree Japan Hedged Equity Fund
For more information on Japan, visit our Japan category.