Japanese markets and Japan ETFs were among the better performers on Tuesday, despite the announcement of a third round of U.S. tariffs on Chinese goods.

Among the leaders, the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) increased 3.2%, iShares Currency Hedged MSCI Japan ETF (NYSEArca: HEWJ) advanced 3.1% and Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) gained 3.0%, breaking back above their long-term resistance at the 200-day simple moving average.

The weaker yen also helped the currency-hedged ETF strategies outperform, with the Invesco CurrencyShares Japanese Yen Trust (NYSEArca: FXY) down 0.5% as the yen currency depreciated to JPY112.38 against the U.S. dollar. Currency hedged ETF strategies included currency swaps to diminish the negative effects of the weaker local currency.

Brokers pointed out that the Nikkei 225 and Topix popped into positive territory and gained momentum, backed by futures-led buying, the Jiji Press reports.

Japanese Market’s Bullishness An Unexpected Surprise

The Japanese market’s bullishness was an unexpected surprise, especially after President Donald Trump announced a new 10% tariff on $200 billion in Chinese products from September 24 and increased the rate to 25, effective January 1.

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