Yen Intervention Boosts Japanese Equities
The recent yen intervention by US and Japanese monetary authorities has had an unexpected impact on global markets. While some critics argue that its effects were short-lived, Japanese equities have actually gained modestly over the past month.
One such example is the WisdomTree Japan Opportunities Fund (OPPJ A-), which posted a gain despite the yen intervention unnerving some investors.
The fund's success can be attributed in part to its 13.7% weight to tech stocks, which have been leading the gains in Japanese equities.
Naoki Kamiyama, chief strategist at Amova Asset Management, notes that these sectors are supported by strong volume growth rather than a weak yen.
As such, the impact of yen appreciation on the earnings of high-growth AI- and semiconductor-related sectors is expected to be relatively modest.