Japan-focused ETFs surged on news of a trade deal between the U.S. and Japan, avoiding steep tariffs. The top three ETFs saw gains of around 4.5%, hitting new highs for the year. President Trump announced a $550 billion investment from Japan into the U.S., with reciprocal tariffs on imports. This news was well-received by investors as it spared Japan’s auto sector from a significant blow. Toyota and other major Japanese automakers saw double-digit gains. ETFs like EWJ and BBJP are up nearly 15% year-to-date, while DXJ is up over 10%. Currency exposure plays a role in performance differences between hedged and unhedged funds. Last year, DXJ soared when the yen tumbled, but this year, the yen’s rally has weighed on its performance.

Read more at Yahoo Finance: Japan ETFs Hit Record Highs After Trump Announces Trade Deal