Japanese equities and the yen are moving in opposite directions — the Csop Nikkei 225 Index Etf (03153.HK) is up more than 1.5% in afternoon trade.

NewTimeSpace — 26 Jan 14:14: Wind data show Japanese equities and the yen have parted ways since the start of 2026, with stocks powering ahead. The Csop Nikkei 225 Index Etf (03153.HK) is up more than 1.5% in afternoon trade.

HKEX records indicate the fund tracks the Nikkei 225 — Japan’s bell-wether gauge compiled by Nikkei Inc., comprising the 225 most liquid, large-cap and sector-representative domestic common stocks.

For the first time in at least twenty years, the equity-market dividend yield has fallen below that of the 10-year JGB, a reversal driven by the recent bond rout and seen as a potential head-wind for Japanese shares. Still, sticky inflation and worries over the deteriorating fiscal balance are providing some underpinning for equity investors.

JPMorgan’s 23 January note “Can Japanese Equities Withstand the Double Pressure of Yen Weakness and Rising Rates?” argues that as long as USD/JPY stays below 165 and the 10-year JGB yield remains under 3%, the up-trend can be maintained. Any non-fundamental sell-off that pushes the Nikkei toward 48,000 would be a key entry point, with medium- to long-term upside driven by improving corporate earnings and pension-fund reallocation.

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