Investing

How to Invest in Japan as the BOJ Hikes Interest Rates

The country’s stock market is booming, but the first rate hike since 2007 may temper the rally. 

Pedestrians cross an intersection in the Shibuya district of Tokyo.

Photographer: Toru Hanai/Bloomberg
Lock
This article is for subscribers only.

International investor interest in Japan is heating up as the country’s stock market surges, but the first rate hike since 2007 may dampen the rally.

After years of struggling with a sluggish economy, Japan appears finally to be back on track for sustainable growth, with wages and exports increasing. That’s attracting foreign investors who are pouring money into the country’s assets and lifting the Nikkei 225 — Japan’s major stock-market gauge — to surpass a record set three decades ago. Even Warren Buffett has boosted his holdings in Japanese companies.