Japanese stock markets have surged to record highs thanks to a US-Japan trade deal. Four ETFs with Gold Medalist Ratings offer investors exposure to Japanese stocks, with notable gains in real estate and technology sectors. The deal, signed by President Trump, reduces tariffs on Japanese car imports, benefiting major automakers like Toyota and Honda.

Japan’s stock market outperformance this year marks a turnaround from previous underperformance against global equity markets. The Bank of Japan’s decision to maintain short-term interest rates at 0.50% reflects caution amid slowing inflation and global uncertainty. This contrasts with rate cuts in the US and Europe, with Japan expected to see strengthening yen and increased purchasing power.

Investors seeking exposure to Japan large-cap stocks can consider ETFs like iShares Core MSCI Japan IMI, Vanguard FTSE Japan, Franklin FTSE Japan, and Amundi IS Japan Topix. These funds boast Gold Medalist Ratings for their potential to outperform their category over the long term. Each ETF tracks different indexes, offering diverse exposure to the Japanese market.

Read more at Morningstar: The Best Japan Large-Cap Blend Equity ETFs