The yen-to-dollar exchange rate hit an 18-month high, and Global X Japan Global Leaders ETF (03150.HK) jumped more than 1.5% in early trading.

NewTimeSpace News: Wind data show the yen briefly broke 159.4 per dollar on 14 January, its strongest level since mid-2023. The surge pushed Japanese equities to fresh records and lifted Global X Japan Global Leaders ETF (03150.HK) more than 1.5% in early trade. Traders say the rapid appreciation reflects both expectations that the BoJ will keep policy loose for longer and concern that looming fiscal expansion could spur capital outflows, raising the odds of FX intervention.

According to HKEX filings, 3150.HK tracks the FactSet Japan Global Leaders Index, co-developed by FactSet and Solactive. The gauge applies an “overseas-revenue + ESG” double filter to create a 20-stock basket of Japanese champions that dominate globally through technology, brands or distribution, offering built-in currency hedging for investors who want Japan exposure without the yen noise.

The top-10 holdings blend “old-money” industrials and trading houses (≈40%) with growth-heavy tech (21%) and consumer names (20%), plus smaller weights in telecom, healthcare and financials.

In local politics, Prime Minister Takashi Sanae has told LDP executives she intends to dissolve the Lower House during the ordinary Diet session starting 23 January, teeing up a snap election. Markets expect the move to cement her leadership and clear the way for a USD 135 bn stimulus package focused on defence, nuclear power and AI, reigniting “Sanae trade 2.0” and sparking simultaneous selling of the yen and JGBs.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.