Japan’s stock market surged to a record high overnight as new political leadership in Tokyo fueled bets on stronger fiscal support and stable monetary policy. Here’s how U.S. investors can take advantage of one of the world’s most powerful equity bull runs. Japan’s Nikkei 225 index jumped 4.8% to overnight Monday after the country’s ruling Liberal Democratic Party elected staunch conservative Sanae Takaichi as its new leader Saturday, putting her on track to become Japan’s first female prime minister. The rally was led by gains in real estate, technology and consumer cyclical stocks. Investors interpreted the outcome as signaling continued stimulus and a steady hand at the Bank of Japan, easing fears of policy tightening in the near term. “The first market reaction and based on Takaichi comments in the past is that she supports more fiscal and monetary stimulus, with the latter punching up against the BoJ’s desire to continue to raise interest rates, albeit slowly, and the elevated inflation in the country,” Peter Boockvar, CIO of One Point BFG Wealth Partners, said in a note. After decades of deflation and slow growth, corporate reforms and stronger shareholder returns have made Japan one of the most attractive developed markets. The latest political change could further accelerate that trend, at least in the short run. The Nikkei has now gained more than 20% in 2025, outperforming the S & P 500 and Europe’s Stoxx 600. .N225 YTD mountain The Nikkei year to date Warren Buffett famously saw Japan’s appeal a few years ago. Buffett’s Berkshire Hathaway has taken major stakes in Japan’s five major trading houses , saying the companies were “as attractive as anything we see around the world.” At the time, these stocks were selling at a deep discount, and he was attracted to the reliable dividends and diversified, cash-generative businesses. Buffett’s endorsement helped transform sentiment toward a market long viewed as value-trapped. Buffett’s picks — Itochu , Marubeni , Mitsubishi , Mitsui and Sumitomo — have all more than tripled since he initially took the stakes over five years ago with the best performer surging more than 500%, according to JPMorgan’s calculations. Ways to play it For investors looking to participate, broad exchange-traded funds such as iShares MSCI Japan ETF (EWJ), WisdomTree Japan Hedged Equity Fund (DXJ) and iShares MSCI Japan Value ETF (EWJV) offer exposure to major Japanese companies. Fidelity Japan Fund (FJPNX) is mutual fund that has a medalist rating on Morningstar and its 28% year-to-date gain ranked in the top percentile among its peers. For exposure to individual Japanese stocks, here are some ADRs or individual Japanese stocks listed in U.S. markets. Toyota , Japan’s leading automaker, is listed on the NYSE under the ticker TM. Honda Motor and Sony Group are also listed on the NYSE. Investors can also get indirect exposure to Japan from Berkshire Hathaway’s stock as the conglomerate now owns more than $20 billion worth of Japanese equities. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
Japan’s stock market surged nearly 5% overnight. Why it’s happening and how to invest in it
Oct 6, 2025
