UPDATE: Warren Buffett’s Berkshire Hathaway has just ramped up its investment in Japanese stocks, signaling a significant shift in market dynamics. A new report reveals record-breaking inflows into Japanese equities, with investors pouring an astounding $6 billion into ETFs in October 2025 alone.
This surge not only eclipses July’s previous high of $5.8 billion but positions the total inflows for 2025 on track to reach a staggering $50 billion. This marks a dramatic increase compared to $31 billion in 2024, showcasing a burgeoning appetite for Japanese securities.
Why should you pay attention? The report from ASX ETF provider Global X highlights a wave of optimism surrounding Japanese stocks, driven by several key factors. With inflation in Japan normalizing, decades of deflation are giving way to increased pricing power, wage growth, and corporate reinvestment opportunities.
Moreover, sweeping corporate governance reforms initiated by the Tokyo Stock Exchange are compelling companies to utilize excess cash more effectively. This includes raising dividends and conducting stock buybacks, which enhances shareholder value. Major firms are now aligning with global megatrends such as AI, electric vehicles (EVs), and energy transitions.
Notably, the TOPIX index—a major benchmark for the Tokyo Stock Exchange—is outperforming both the S&P 500 and the S&P/ASX 200 indices in 2025, further indicating Japan’s shifting investment landscape.
Buffett’s Berkshire Hathaway is not alone in this investment trend. The firm identified Japanese companies as having compelling valuations and robust balance sheets, making them attractive for long-term investment. These insights signal a profound transformation in Japan’s equity market, characterized by moderate inflation and renewed investor enthusiasm.
For Australian investors eyeing this lucrative opportunity, several ASX ETFs offer exposure to Japanese stocks. The iShares MSCI Japan ETF (ASX: IJP) targets large and mid-cap companies, while the BetaShares Japan ETF – Currency Hedged (ASX: HJPN) provides diversified exposure to significant Japanese firms with currency protection.
Additionally, a new ETF from Global X is set to launch this month, marking a first by tracking the TOPIX index directly. It will be available on the ASX under the ticker code J100, providing yet another avenue for investors to capitalize on Japan’s market growth.
As these developments unfold, investors are urged to consider the compelling case for Japanese stocks. With significant inflows and institutional interest, Japan is increasingly viewed not as a past economic relic but as a potential powerhouse in the global investment landscape.
Stay tuned for further updates as this situation develops, and consider how these movements in Japanese equities could impact your investment strategy today.
