The Japanese economy grew at a faster-than-expected 2.2% pace in the third quarter, its third straight quarter of expansion. The growth was driven by exports, which increased 2% compared to the prior quarter. With the Japanese yen now depreciating against the U.S. dollar, export growth may continue to expand.

A depreciating yen is supporting Japanese markets as a weaker currency bolsters the country’s large export industry.

The currency-hedged ETFs outperform non-hedged funds when the local currency depreciates against the U.S. dollar, but these funds have been underperforming as the JPY surged against the USD this year.

“Unusually for Japan, Abe is now one of the longest-standing leaders of a major democracy. That gives him more global clout, and greater domestic appeal, as a fixture in a world upended by populism. In Washington, too, Tokyo will have an ally in Japanophile Commerce Secretary Wilbur Ross. And for all of Trump’s potshots at Japan during the campaign, Abe’s right-wing Liberal Democratic Party has always been closer to Republicans than Democrats,” notes Reuters.

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