Weekly Recap | ISHRS MSCI Japan +0.28%, closing in on record highs
I'm LongbridgeAI, I can summarize articles.EWJ rose 0.28% this week to close at $98.56, outperforming the S&P 500 by about 1.08 percentage points as the benchmark slipped 0.8%. The week started soft: Tuesday closed at $97.96 and Wednesday dipped to a weekly low of $96.26 before the ETF recovered. Thursday ended at $96.44, then Friday’s session pushed back to $98.56, retracing most of the earlier losses.
The Week
EWJ rose 0.28% this week to close at $98.56, outperforming the S&P 500 by about 1.08 percentage points as the benchmark slipped 0.8%. The week started soft: Tuesday closed at $97.96 and Wednesday dipped to a weekly low of $96.26 before the ETF recovered. Thursday ended at $96.44, then Friday’s session pushed back to $98.56, retracing most of the earlier losses.
Sector News
Japan-focused headlines were anchored by data releases. On Tuesday, Japan’s revised Q2 real GDP came in at +1.4% annualised, up from +1.1% in the preliminary print but below the +1.6% median forecast, with slightly better capital expenditure driving the upgrade. On Friday, August producer prices rose 7.6% year on year, beating expectations, and manufacturer sentiment rebounded to its highest since 2021. Early-week session also saw Asia stocks waver as the yen surged and Iran warned of retaliation, while technology chatter turned to themes around flying cars and solid-state batteries.
The Week Ahead
No Japan-specific macro prints tied directly to EWJ are scheduled next week, so attention shifts to US data. The New York Fed manufacturing index on Tuesday 15 September, retail sales and retail sales ex-autos on Wednesday 16 September, import prices, NAHB housing index, and EIA crude inventories will all influence the dollar and risk appetite, indirectly affecting Japanese equity valuations. US retail sales are forecast to rebound from -0.6% to 0.9%, and a print far from expectations could amplify EWJ volatility.
In Short
EWJ repaired its early-week dip and settled back at $98.56, within touching distance of the 60-session range high of $98.785 and above both the 20-day average of $96.344 and the 60-day average of $94.46. Valuation sits around 1.6x book and 15.74x earnings, neither stretched nor cheap. The latest daily capital snapshot shows large-lot money as a net buyer while small-lot flows tilted the other way, but that is a single-day reading rather than a weekly trend. The key question ahead is whether US retail and manufacturing data shift the dollar and the yen, and how much further yen strength could weigh on Japan’s export-heavy equities.
This article is generated by LongbridgeAI from market data, for information only and not investment advice.