Are you looking for advice on which best Japanese stocks to invest in?
Sushi, robots, anime, and other Japanese exports have helped make the nation famous across the world.
However, Japan is home to more than just sushi and sake; the country also produces some fascinating multinational corporations that have permeated economies and cultures worldwide.
Japanese stock portfolios often prioritize Japanese companies. Given the size of the Japanese stock market, these portfolios’ contents might vary widely.
Different portfolios focus on either the largest or smallest Japanese enterprises. These investment packages put at least 75% of their stock holdings in Japanese companies and at least 70% of their total assets in equities.
If you’re curious about the best Japanese stocks to invest in, you’ll find a wealth of information in this article.
If you have any questions or want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use estas opciones de contacto.
In general, we advise that you should invest in funds and ETFs rather than individual stocks.
This article is merely looking at some of the better individual stocks to buy.
Individual stocks always carry more risks than ETFs.
Japanese Stock Market
Recently, inflation has become the topic of all economics discussion.
The globe is presently experiencing a high-interest rate environment, which has been influenced by stimulus measures implemented during the epidemic, the following increase in the price of oil, and geopolitical reasons.
Perhaps the only institution maintaining its lax attitude on monetary policy in such a situation was Japan’s central bank. Though the central bank expanded its yield curve control range in late 2022, it only modestly tightened its monetary policy.
The Japanese economy’s expansion would be constrained by high interest rates and inflation. However, some of the biggest Japanese firms have seen their exports and profit margins increase as a result of a strong dollar (and a weak yen).
An increase in the value of the yen may result from a downturn in the world economy, which would reduce inflation.
Meanwhile, a central bank under pressure to alter its monetary policy might be affected by consistently rising inflation. Thus, Japan as a whole and the majority of the Asian individual markets are both in an attractive position.
14 Best Japanese Stocks to Invest in
Sony Group Corporation (NYSE:SONY)
Sony Group Corporation Overview
The Sony Group Corporation, which trades under the symbol SONY on the New York Stock Exchange, is in the business of designing, manufacturing and marketing various types of electronic devices. It is one of the best Japanese stocks to invest in.
The Sony Corporation is largely regarded as being among the most successful and well-known corporations in Japan.
The consumer electronics, gaming, music, and image sensor sectors are some of the ones that the firm is active in. The total amount of the Japanese company’s market capitalization is calculated to be 14.6 trillion yen.
A research analyst at Goldman Sachs named Minami Munakata has resumed coverage of Sony Group Corporation (NYSE: SONY) shares.
She has assigned the company a Neutral rating and set a price target of 12,200 yen for the stock. According to Munakata, it is anticipated that the company’s short-term profitability would become more stable.
According to the hedge fund monitoring conducted by Insider Monkey, GAMCO Investors, an investment business with headquarters in New York, has a significant position as a shareholder in Sony Group Corporation (NYSE: SONY).
GAMCO Investors is a major stakeholder in Sony Group Corporation. The company is the owner of 1.8 million SONY shares, which have a combined market value of around $146.5 million.
Aristotle Capital Management, which is in the business of asset management, highlighted a number of stocks in its investor letter for the first quarter of 2022, and Sony Group Corporation (NYSE: SONY) was one of the firms that were featured.
Sony’s Brand and Financial Strength
The exclusive designation of the product Sony is a well-known and acclaimed brand all over the world, having expanded beyond its roots in Japan to become a well-known and significant household brand.
The company enjoys a huge edge over its competitors. Sony is a company of significant volume and scope, which endows it with enormous financial power. Because of this, Sony is a corporation of such significance that the likelihood of its failing seems to be fairly remote.
Challenges and Ongoing Innovation
Despite this, Sony’s activities consistently run across stumbling blocks. When it comes to products that are sensitive to price, Sony’s market share might often be hurt by the availability of inexpensive Chinese electronics.
Similarly, Sony is subject to the ongoing and fast advancement of the technology that is now available. As a result, it is very necessary for it to make an ongoing effort to remain relevant via the implementation of ongoing innovation.
The Betamax format was a huge disappointment to consumers, and as a direct consequence, it was eventually forced to cede its leadership position in the home video industry to the VHS format.
Trading the Sony Corporation Contract for Difference (CFD) is one of the options that can be taken advantage of at Admirals. Another possibility is to invest directly in the shares of the Sony Corporation.
Nippon Suisan Kaisha Ltd. (NISUY)
Nippon Suisan Kaisha Overview
Formerly known by its acronym Nippon Suisan Kaisha, the company is now more well known by its current name, Nissui Corporation. It is one of the best Japanese stocks to invest in.
The total value of the company’s stock on the market is equal to 167 billion yen. The company is active in the seafood business, which gives it major importance at a time when there is an increasing focus on ensuring that there is enough food for everyone.
Global Reach and Steady Performance
The number of countries to which Nippon Suisan Kaisha ships its wares brings the total number of destinations to more than 70.
As a player in the food sector, Nippon Suisan Kaisha often encounters high levels of demand for the products it offers.
Some investors consider purchasing this specific stock, which has a performance that can be described as very constant, to be a defensive investing strategy.
Challenges in the Seafood Sector
Nonetheless, working in the seafood sector comes with a number of inherent dangers, one of which being the possibility of encountering resistance from political activists and environmentalists who are opposed to techniques that are seen as being unsustainable.
Because of the intense opposition from environmentalists, Nippon Suisan Kaisha was forced to call an end to its commercial whaling operations.
In addition to this, the development of disease outbreaks and diseases may have a negative impact on the ecology of the maritime environment.
The operations of Nippon Suisan Kaisha are susceptible to being impacted both by the climatic conditions and any natural disasters that may occur. These threats are, by their very nature, impossible to manage.
It is now time to begin trading the Nippon Suisan Kaisha Ltd Contract for Difference (CFD).
MEDIROM Healthcare Technologies Inc. (NASDAQ:MRM)
MEDIROM Healthcare Technologies Inc. Overview
MEDIROM Healthcare Technologies Inc., which trades on the NASDAQ under the ticker symbol MRM, is a business that provides all-encompassing medical services in the Japanese market. It is one of the best Japanese stocks to invest in.
This specific Japanese stock is widely regarded as one of the most attractive oportunidades de inversión currently available.
The city of Tokyo serves as the location for the company’s headquarters, which opened in the year 2000.
Diverse Beauty Salon Network
The corporation owns and manages a network of more than 300 branded beauty salons that provide a variety of services to its clientele.
These treatments include physical therapy components in addition to finger-pressure type bodywork therapy, stretch therapy, posture and joint alignment, and joint mobilization.
In addition, each salon provides a selection of individualized therapies, including reflexology, anti-fatigue therapy, slim-down therapy, and athletic support therapy.
Positive Analyst Ratings and Comparison with Other Japanese Stocks
Mizuho Financial Group, Inc. (NYSE:MFG) shares was upgraded to Outperform from Neutral by financial advisory firm Daiwa on August 24.
The firm has set a price objective of 1,700 yen for the company. Akira Takai, an analyst, has provided the most recent ratings.
In addition to this, they decided that the target price would be 1,700 yen. Analyst Akira Takai is responsible for the latest ratings change.
Similar to Honda Motor Co., Ltd. (NYSE:HMC), Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG), and Sony Group Corporation (NYSE:SONY), MEDIROM Healthcare Technologies Inc. (NASDAQ:MRM) is regarded to be one of the best Japanese stocks for investment.
Honda Motor Co., Ltd. (NYSE:HMC)
Honda Motor Co., Ltd. Overview
The Honda Motor Co., Ltd., which trades on the New York Stock Exchange under the ticker symbol “HMC,” is a multinational business that focuses on the design, production, and global distribution of automobiles, motorcycles, and power products. It is one of the best Japanese stocks to invest in.
Among the several Japanese investing opportunities, one particular stock stands out as being in a category of its own.
Ambitious Joint Venture with LG Energy Solution
The plan of the company to partner with LG Energy Solution in a large investment of $3.5 billion towards the creation of a joint venture battery factory in Fayette, Ohio was disclosed in the statement that was made on October 11.
According to the comments that were supplied by the companies, it is projected that this joint endeavor will produce a total of 2,200 job possibilities; however, this prediction is contingent on the government granting their final license.
Fisher Asset Management as Major Shareholder
According to information provided by Insider Monkey, the New York-based investment firm Fisher Asset Management has a significant position as a large investor in Honda Motor Co., Ltd. (NYSE:HMC).
Fisher Asset Management is a major shareholder in the company. The company has a sizeable position in the company, which is estimated to be worth around $213 million and consists of 8.8 million shares.
Fast Retailing Co., Ltd. (FRCOY)
The Uniqlo Brand and Diverse Portfolio
The leading clothing retailer in Japan called Fast Retailing Co. is the parent company of the well-known Uniqlo brand. J Brand, Princesse Tam Tam, and Theory are some of the other brands that it carries and are featured in its portfolio.
Global Presence and Impressive Market Capitalization
The international firm known as Fast Retailing has a wide network of over 4500 retail shops spread over a number of different nations.
It has the distinction of being ranked as the third-largest clothing company anywhere in the globe in terms of total income generated through sales. It is estimated that 8.9 trillion yen is the total market capitalisation of Fast Retailing, one of the best Japanese stocks to invest in.
The existence of a powerful brand inside the business, such as Uniqlo, provides as an advantage for the company in terms of competition.
The goal of Fast Retailing’s strategic resource allocation is to improve operational efficiency and retain a competitive advantage in the market. This is accomplished by investing in technical developments and emerging trends like artificial intelligence (AI) and robotics.
Vulnerabilities in the Retail Industry
In spite of this, the retail business is often one of the first to feel the effects of a slowing economy, placing it among the front-runners among all industries in this regard.
A substantial obstacle to Fast Retailing is posed by the possibility that increasing interest rates and inflation may have an effect on the company.
In addition, the retail business is characterized by high levels of rivalry, which makes it difficult to develop a distinctive position in the market.
There is a possibility that other businesses providing comparable or equal things at lower prices may compete with Fast Retailing, which might put a downward strain on the company’s profit margins.
You may want to think about participating in the trading of Fast Retailing Company Contracts for Difference (CFDs), or you could decide that a direct investment in Fast Retailing Company shares is a better choice.
ORIX Corporation (NYSE:IX)
ORIX Corporation Overview
The establishment of the organization can be traced back to the year 1950 and took place in Tokyo. The business employs more than 32,000 people throughout its many departments and branches.
ORIX Corporation is a global provider of a diverse set of financial services, operating in several countries and marketplaces throughout the world, including the Europe, Americas, Asia, Australasia, the Middle East, Japan, and other countries
This specific stock is often regarded as one of best Japanese stocks to invest in.
On October 11, ORIX manufacturer (NYSE:IX) was included in a coalition of companies that were given bidder status by Toshiba, a famous electronics manufacturer.
The consortium was led by investment business Japan Industrial Partners and consisted of other companies as well.
The purchase of Toshiba is now being pursued by the group, which includes Chubu Electric Power among other companies. ORIX is the new name that has been given to the business that was previously known as Orient Leasing.
Comprehensive Range of Commercial Activities
ORIX Corporation (NYSE: IX), one of the best Japanese stocks to invest in, offers a varied range of commercial activities, encompassing not just banking but also insurance, environmental efforts, and energy-related products and services as well.
Growing Performance
At the end of the second quarter of 2022, the database maintained by Insider Monkey had information on six hedge funds that had holdings in ORIX Corporation (NYSE:IX) worth a total of $10.4 million.
This statistic reflects an increase from the previous quarter, during which four hedge funds had stakes valued at $9.2 million. This quarter, this figure represents an increase from the previous quarter.
Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)
Mitsubishi UFJ Financial Group, Inc. Overview
MUFG Bank, Ltd. is a financial institution that provides a wide variety of banking and financial services. It is one of the best Japanese stocks to invest in.
Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG) is the bank holding company that oversees MUFG Bank, Ltd. Within the context of the Japanese investing environment, this specific stock has achieved a position of substantial significance.
Strategic Acquisition Agreement with US Bancorp
The company issued a statement on September 19 about an agreement it had reached with US Bancorp to exercise a right granted to it under the purchase agreement for the acquisition of the core regional banking franchise now held by Mitsubishi UFJ Financial Group Union Bank.
This agreement will remain in effect until December 31, 2022, even if its expiration date has been moved forward.
Hedge Fund Holdings in Mitsubishi UFJ Financial Group, Inc.
At the end of the second quarter of 2022, the total number of hedge funds included in the Insider Monkey database had financial holdings in Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) valued at $22.8 million.
These interests were held by a total of 12 hedge funds. This is a reduction from the previous quarter’s statistic, which showed the same number of hedge funds owning positions with a total value of $37 million.
Mizuho Financial Group, Inc. (NYSE:MFG)
Mizuho Financial Group, Inc. Overview
Mizuho Financial Group, Inc., which trades under the ticker symbol “MFG” on the New York Stock Exchange, is engaged in a variety of financial services, including banking, trust, securities, and other linked businesses. It is one of the best Japanese stocks to invest in.
The specific stock in question has a significant place among the investing opportunities available in Japan.
Reports from the media dated October 6 indicated that conversations had taken place between the company and the Rakuten Group over the possibility of the business’s purchase of a part in the securities division of the e-commerce behemoth.
The financial services company has communicated its aim to buy a twenty percent ownership stake in Rakuten Securities at a total cost of five hundred and fifty four million dollars.
On July 29, the company Mizuho Financial Group, Inc. (NYSE:MFG) announced the publication of its financial results for the first fiscal quarter.
Strong Financial Performance in the First Fiscal Quarter
In contrast to the same period in the previous year, the business recorded earnings per share of 62.85 and an ordinary income of 1.24 trillion, which indicates a remarkable rise of 67.6% in comparison to the previous year’s results.
The financial institution has not revised its forecast for net profit for the whole year, which now stands at 540 billion yen. This figure is much lower than the experts’ average estimate of 550.60 billion yen.
According to the hedge funds that are tracked by Insider Monkey, the New York-based investment firm Renaissance Technologies has emerged as a significant investor in Mizuho Financial Group, Inc. (NYSE:MFG).
Renaissance Technologies is a publicly traded corporation. The company has around 2.2 million shares of MFG, which have a value of approximately $4.9 million.
Hedge Fund Holdings in Mizuho Financial Group, Inc.
At the end of the second quarter of 2022, the database maintained by Insider Monkey revealed a total of seven hedge funds with holdings valuing $8 million in Mizuho Financial Group, Inc. (NYSE:MFG).
These positions were valued at the completion of the second quarter of 2022. This number shows a decline from the previous quarter when eight hedge funds had stakes in the aforementioned firm for a total of $10 million. This statistic represents the decrease.
Mitsubishi Corp (MSBHF)
Mitsubishi Corporation Overview
The Mitsubishi Corporation is a worldwide conglomerate corporation that is active in a variety of areas, including the financial sector, the energy sector, the equipment industry, and the chemical industry, amongst others.
Mitsubishi is a significant player in the field of Japanese business, and its headquarters are located in Tokyo. It is one of the best Japanese stocks to invest in.
The company in issue is widely regarded as the largest commercial enterprise operating in Japan.
It is generally accepted that Mitsubishi Corporation employs something in the neighborhood of 80,000 people worldwide. The total value of the corporation represented by its market capitalization is 6.7 trillion yen.
Diverse Commercial Activities
Mitsubishi is involved in a variety of commercial activities in a variety of sectors, including the food industry, the financial industry, the chemical industry, and the equipment industry.
Because of this, the firm is in a position where it can use the benefits of diversity in conjunction with its well known brand identity.
The fact that Mitsubishi has a vast network of subsidiaries and partners spread out across a variety of geographic regions enables the business to expand its commercial activities and break into new markets.
As a result of the fact that other businesses are able to provide equivalent products at prices that are comparable with Mitsubishi’s, the company faces intense competition within the energy and equipment sectors.
This argument is especially relevant when considered in the context of countries like China that are now through the process of industrialisation and building their industrial infrastructure.
The ever-changing character of the technology landscape presents Mitsubishi with an ongoing challenge, one that requires the company to make consistent adjustments in order to stay relevant in the market.
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)
The financial services provided by Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) include consumer loans, commercial banking, leasing, and securities, and a variety of other services.
This specific stock is often regarded as one of the best Japanese stocks to invest in.
Following the finding of breaches of intra-group firewall restrictions throughout their banking and securities divisions, the Japanese financial authority on October 7 issued a directive to the banking company, asking them to establish strategies targeted at strengthening compliance. This was done in response to the revelation that the violations had occurred.
According to research conducted by Insider Monkey on hedge funds, the Quebec-based investment firm Ramius has a sizeable position in Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG).
Ramius is one of the hedge funds that was analyzed. Over $58.5 million dollars’ worth of SMFG stock is held by Ramius, who is the owner of 9.9 million shares in the company.
Nomura Holdings, Inc. (NYSE:NMR)
Nomura Holdings, Inc. Overview
Nomura Holdings, Inc., which trades on the New York Stock Exchange under the ticker symbol “NMR,” provides a wide variety of financial services to a worldwide clientele that consists of people, corporations, financial institutions, governments, and agencies of governments.
This specific stock has substantial notoriety within the Japanese market and is seen as a promising investment prospect due to its strong market presence. It is one of the best Japanese stocks to invest in.
According to the chief executive officer of global investment banking for Nomura Holdings Inc. (NYSE:NMR), the business has plans to increase the size of its staff by hiring more bankers.
This strategic decision has been made with the intention of strengthening its sustainable finance division in preparation for an expected increase in the demand for financing associated to decarbonization activities.
According to research provided by Insider Monkey, the Boston-based investment firm Arrowstreet Capital has a significant position as a big investor in Nomura Holdings, Inc. (NYSE:NMR).
Arrowstreet Capital is a substantial shareholder in the company. The organization is the owner of 2.4 million Nomura Holdings shares, which have an approximate value of $8.9 million.
Hedge Fund Holdings in Nomura Holdings, Inc.
At the end of the second quarter of 2022, the database maintained by Insider Monkey revealed a total of seven hedge funds had holdings in Nomura Holdings, Inc. (NYSE:NMR) valued at $12.6 million.
These interests were held in the company. This number shows a decline from the previous quarter, in which nine hedge funds had interests in the aforementioned firm for a total of $15 million. This statistic represents the decrease.
Takeda Pharmaceutical Company Ltd. (NYSE:TAK)
Takeda Pharmaceutical Company Ltd. Overview
Takeda Pharmaceutical Company Limited, which trades on the New York Stock Exchange under the ticker symbol “TAK,” is active in a number of facets of the pharmaceutical business. It is one of the best Japanese stocks to invest in.
These facets include research and development, as well as the manufacture, marketing, and licensing of pharmaceutical products. This specific Japanese stock is widely regarded as one of the most attractive oportunidades de inversión currently available.
On October 5th, the company issued a public statement on the acceptance of their supplementary biologics license application by the FDA.
This application relates to the potentially expanded use of their Takhzyro injectable for the treatment of attacks induced by hereditary angioedema in children ranging in age from 2 to 12. The affected children have been given the age range to fall inside.
Outperform Rating and Price Objective Upgrade
Takeda Pharmaceutical Company Limited (NYSE: TAQ) stock has been given an Outperform rating after an investigation that was carried out by Cowen analyst Ken Cacciatore on July 19. This resulted in the company receiving an upgrade from a Market Perform rating.
The analyst has also raised the price objective for the business, which previously stood at $21, to the current level of $24. Cacciatore draws attention to the fact that the current share price of Takeda Pharmaceutical Company Limited presents an alluring value proposition.
Significant Investment by Renaissance Technologies
Among the hedge funds that are tracked by Insider Monkey, the New York-based investment firm Renaissance Technologies stands out as a significant shareholder in Takeda Pharmaceutical Company Limited (NYSE:TAK).
Renaissance Technologies is a member of the Renaissance Technologies Group. The company has a sizeable investment in the form of 2.8 million shares, which have a combined worth of around $39.7 million.
Tokyo Electron Ltd. (TOELY)
Tokyo Electron Ltd. Overview
The city of Tokyo is home to the headquarters of the semiconductor company known as Tokyo Electron. The total value of the company’s stock on the market is equal to 7.6 trillion yen.
The company supplies semiconductor businesses all around the world with both equipment and services. Tokyo Electron Ltd. is one of the best Japanese stocks to invest in.
Diverse Product Offerings
The wide variety of goods that Tokyo Electron offers has earned the company a stellar reputation. Some of the company’s most well-known offerings include coaters, wafer processors, and cleaning systems.
Because of the widespread use of semiconductor materials in a wide variety of consumer electronics and military hardware, the semiconductor sector is steadily moving toward playing a more important strategic role.
According to the predicted trend, there will continue to be a significant demand for these things, and there is the possibility that this need could increase even higher.
Customers of Tokyo Electron include some of the most well-known names in the industry, such as Samsung, TSMC, and Intel. As a result of the organization’s actions in Asia, Europe, and the Americas, the company has established a footprint all over the globe in the realm of commercial endeavors.
The MetaTrader WebTrader platform is available for use by anybody interested in engaging in trading activities involving the Tokyo Electron Ltd Contract for Difference (CFD).
Geopolitical Context and Potential Impact
The semiconductor sector is susceptible to the effects of the current geopolitical context. Tokyo Electron may be impacted as a result of export restrictions imposed on China by the United States. These restrictions have the potential to have an effect.
Furthermore, it is important to make note of the fact that the adoption of severe monetary policies throughout the world may have the potential to have a negative influence on the demand for semiconductor manufacturers in the near term, which might result in recessions or slowdowns.
Canon Inc. (NYSE:CAJ)
Canon Inc. Overview
In addition to plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, lithography equipment, and office multifunction devices (MFDs), Canon Inc. is a publicly traded company that is listed on the New York Stock Exchange under the ticker symbol CAJ.
Canon Inc. is engaged in the production and distribution of a variety of products. This specific stock has a prominent place among the many investing opportunities available in Japan because it is one of the best Japanese stocks to invest in.
The company published a statement on the 10th of October on its desire to present a varied assortment of cutting-edge printing solutions, large format technology, and high-value print at the upcoming PRINTING United Expo, which is set to take place at the convention center in Las Vegas.
Canon Inc. (NYSE:CAJ) provides a variety of items that are linked to printing, such as image scanners, calculators, inkjet printers, laser printers, laser multifunction printers, large format printers, digital sheet-fed presses, digital continuous feed presses, and document solutions. These products may be found on their website.
Hedge Fund Holdings in Canon Inc.
At the end of the second quarter of 2022, it was discovered that the combined holdings of the eight hedge funds that are a part of the Insider Monkey database were worth $51.6 million in Canon Inc. (NYSE:CAJ) shares.
This number shows a decline from the previous quarter, in which 8 hedge funds owned positions in the aforementioned firm for a total of $63.5 million. This statistic represents the decrease.
Among the several hedge funds that are tracked by Insider Monkey, the investment business Renaissance Technologies, which has its headquarters in New York, stands out as a significant shareholder in Canon Inc. (NYSE:CAJ).
The company has a sizeable position in the company, which is valued at more than $32 million and consists of 1.4 million shares.
Notable Japanese equities include Honda Motor Co., Ltd. (NYSE: HMC), Mitsubishi UFJ Financial Group, Inc. (NYSE: MUFG), Sony Group Corporation (NYSE: SONY).
All three of these companies are listed on the New York Stock Exchange. In addition, the current selection of Japanese stocks includes Canon Inc. (NYSE: CAJ), which is seen as a positive investment choice among the options available.
Reflexiones finales
Any potential investor in the company’s shares should undertake their own due diligence, taking into account the company’s prospects and current market circumstances.
Both the underlying health of a firm and the larger economic climate influence stock price movement. Nothing is certain.
The markets have been quite unstable recently. Consider your individual risk tolerance and the trading environment while doing this analysis. There is no assurance that I will repeat my past successes. Don’t risk money you can’t afford to lose.
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Adam es un autor reconocido internacionalmente en temas financieros, con más de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.
