Last month, I took a look at the Japanese stock market a bit because I saw news that Nikkei 225 surged to its highest level in 34 years. I wanted to know which stocks here are truly worth keeping an eye on.

Let’s see why the Japanese market looks so interesting right now. Most importantly, the BOJ (Bank of Japan) has started gradually raising interest rates. After being stuck in deflation for many decades, they’re now sending signals of a shift toward mild inflation—about 2% per year. This is good for the economy, because it encourages people to spend and companies to invest more.

Another big development is Japan’s corporate reform, which is placing greater emphasis on delivering returns to shareholders. This time, it seems companies are genuinely willing to change—not just saying the right things like before.

Speaking of stocks, I’ve compiled a list of 10 interesting ones for you to check out:

Toyota is still the unchallenged automotive powerhouse. What’s impressive is that they’re stepping up their development of electric vehicles (EVs) and solid-state batteries. The P/E ratio is around 9–10 times, not expensive, with a dividend of 2.5–3%.

Sony isn’t just ordinary consumer electronics anymore. It also has PlayStation gaming, camera sensors, music, and movies. It looks like profits could grow well over the next few years. The P/E ratio is around 17–18 times, with a dividend of 1.1%.

MUFG, Japan’s biggest bank, benefits fully from rising interest rates, which increases their interest income. The P/E ratio is around 10–11 times, with a 3% dividend—very attractive.

Fast Retailing (UNIQLO) continues expanding steadily. Revenue is growing thanks to new store openings and online sales, but its P/E is a bit high at about 38 times, which reflects expectations for future growth.

Keyence—if you think of the most profitable Japanese company, this is the first name that comes to mind. The king of sensors and automation systems benefits from the global AI trend. Its profits and ROE are extremely high, but the P/E is also high at about 35 times.

Mitsubishi Heavy Industries (MHI) benefits from two major trends: increasing defense budgets and the shift toward clean energy. Profit is expected to grow strongly as orders continue to come in. The P/E ratio is around 34–38 times.

Tokyo Electron Limited (TEL), one of the world’s largest chip equipment manufacturers, benefits from the recovery in the chip industry and AI data center investments worldwide. It’s expected that profits will jump significantly in 2025–2026. Dividend yield is 2.1%.

Advantest, a leader in chip testing equipment, benefits from the growth of AI chips and electric vehicles. After a period of slowdown, it’s expected to bounce back strongly. The P/E ratio is around 19–29 times.

Nintendo—if we’re talking about the most exciting rumors, it’s the anticipated Switch 2. If it becomes real, I’m sure sales will surge dramatically. In addition, they’re expanding into movies and theme parks. The P/E ratio is around 18–20 times, with a dividend of 1.6%.

Itochu, the largest comprehensive trading company, has a wide variety of businesses. Most importantly, Warren Buffett has invested! Net profit in 2025 is expected to reach 880 billion yen, up 9.7%. The P/E ratio is around 10–11 times. Dividend is 200 yen per share, up 25%.

When it comes to investing, the Japanese stock market offers easy options for Thais. The first is to buy individual stocks directly through Thai brokers that provide this service, or to invest through Japanese ETFs. If you want to invest long term and spread risk, another option is trading CFDs if you want to speculate on short-term price movements—using less capital but with higher risk.

I think 2025 is a good year for the Japanese stock market, because of policy changes and corporate reforms. If anyone is interested in investing abroad, Japan should be a strong option.