The Japanese stock market has been quite strong in recent years, and today I want to share some interesting things about it.

What’s the most attractive? In 2023, the Nikkei 225 index increased by over 31%, surpassing both the S&P 500 and the Dow Jones. Imagine that, a Japanese stock market that people usually overlook is performing even better. Bloomberg also calculated that the market capitalization gap between China and Japan has narrowed significantly, the lowest since 2020. Perhaps it’s because Warren Buffett invested in five Japanese trading companies, creating a new wave of interest from international investors.

But the problem is, Vietnamese people wanting to buy Japanese stocks directly is quite complicated—legal issues, investor verification, the entire process is very cumbersome. Therefore, a simpler way is to invest in indices or derivatives based on the price movements of Japanese stocks without actually owning the assets.

The most notable indices are Nikkei 225 (the 225 largest companies on the Tokyo Stock Exchange), Nikkei 300, TOPIX, or S&P Japan 500. Each has a different weighting method, but all reflect the health of Japan’s economy.

If you want to pick individual stocks, a few notable companies are: Tokyo Electron (semiconductors, clients include Samsung and TSMC), Fast Retailing (parent company of Uniqlo, with over 4,500 stores worldwide), Sony (diverse industries, from electronics to gaming), Mitsubishi (major trading company, active in energy and chemicals), or Nippon Suisan Kaisha (food, exports to over 70 countries).

The advantage of Japanese stocks is that the economy remains stable, technologically advanced, and now has growth opportunities from geopolitical factors and post-pandemic recovery. However, you need to find a reputable trading platform that is closely monitored before starting. Are you interested in Japanese stocks?