Economy Improving but Leveraged Japan ETF Still Hinges on Trade Wars

Still, the topic of trade wars will be a major driver for JPNL and as such, traders should take heed as the U.S.-China negotiations unfold.

“Attention should be given to risks including the effects of situations concerning trade issues on the world economy, the uncertainty in overseas economies and the effects of fluctuations in financial and capital markets,” Japan’s Cabinet Office said.

A rise in market sentiment can fuel more overseas investing by the Japanese, which was evident during a September that saw a marked increase in U.S. bond purchases as investors snatched up a net 2.28 trillion yen ($20 billion) of the debt based on a balance-of-payments data from the Asian nation’s Ministry of Finance. The bond buying wasn’t just relegated to United States Treasuries as Japanese investors were also large buyers of debt in European countries like Germany, Spain and France.

Related: Japan ETFs Brush Off Escalating Trade War Fears

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