EWJ: Why Japan Is At Risk From Surging LNG And Oil Prices

WideAlpha6.23K FollowersFollow5ShareSavePlay(9min)CommentsSummaryJapan's equity market, represented by EWJ, faces headwinds from energy shocks, a weak yen, and limited fiscal space despite recent investor enthusiasm.EWJ's sector exposure is vulnerable, with heavy weights in industrials and financials, while more resilient sectors have minimal representation.Valuation for EWJ at ~19x P/E is not excessive versus global peers but is above its own 10-year average and reflects sector mix differences.Defensive individual names like NTT and Tokyo Metro offer clearer opportunities amid macro risks, energy dependence, and potential recession. Aaphakon Yusomsri/iStock via Getty Images To paraphrase Charles Dickens, for Japanese investors, these are the best of times, and these are the worst of times. Japan is once again drawing global attention. From anime and manga to philosophical concepts like Wabi-Sabi, Japanese culture is increasinglyThis article was written byWideAlpha6.23K FollowersFollowFin-tech startup leveraging machine learning technology to discover investing opportunities and to generate growth-optimal portfolios. Publisher of the WideAlpha AI-Selected Index, which has markedly outperformed its benchmark.Analyst’s Disclosure: I/we have a beneficial long position in the shares of TKMTY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling shares, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.