Japan's stock market is up about 19% so far in 2026, beating the S&P 500's 13% gain, even as the yen trades near multi-decade lows. The iShares MSCI Japan Index Fund has been driven by technology, financials, basic materials, and industrials, according to Yardeni Research. Japan's economy expanded at an annualized 2.1% in the first quarter, with exports up 11.5% year over year, led by a 29% jump in semiconductor equipment shipments. The country imports about 97% of its oil, mostly from the Middle East, leaving it vulnerable to energy price spikes.
