Core Insights - All nine global indexes tracked have shown gains through November 24, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 31.2% [2] - The second and third positions are held by Canada's TSX with a gain of 22.9% and Japan's Nikkei 225 with a gain of 21.9% [2] - India's BSE SENSEX has the smallest year-to-date gain at 6.2% [2] Index Performance Context - A table is provided that compares each index's current value to its all-time peak, including the date of that peak and the distance from that record level [3] - Historical performance charts illustrate the comparative performance of world markets since significant lows, with specific start dates for various indexes [5][6] Additional Information - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Core Insights - All nine global indexes tracked have shown gains through November 17, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 34.5% [2] - Japan's Nikkei 225 follows with a 26.1% gain, while China's Shanghai Composite is at 21.8% [2] - India's BSE SENSEX has the smallest gain at 6.3% [2] Index Performance Context - A comparative performance chart illustrates the indexes' standings relative to their historical peaks, showing current values, all-time peaks, and the distance from those peaks [3] - The performance of world markets has been analyzed since March 9, 2009, aligning various indexes to visualize relative performance effectively [5] - Additional charts provide insights starting from October 9, 2007, and the turn of the century, offering a longer-term view of index performance [6] Index Tracking Methodology - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Core Insights - All nine global indexes tracked have shown gains through November 3, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 33.3% [2] - Japan's Nikkei 225 follows with a gain of 31.4%, while China's Shanghai index has increased by 21.9% [2] - India's BSE SENSEX has the smallest year-to-date gain at 5.1% [2] Index Performance - The performance of the indexes is compared to their historical peaks, providing context on their current values and distance from all-time highs [3] - A chart illustrates the comparative performance of world markets since March 9, 2009, highlighting the relative performance of various indexes [5] - Another visualization starts from October 9, 2007, to show the relative performance during a previous market peak [6] Market Trends - The analysis includes a focus on the impact of recent recessions on world indexes, starting from the official NBER recession date of February 3, 2020 [4] - The data visualizations utilize a log-scale vertical axis for better comparison of performance across different indexes [5][6]

Core Insights - Japan's Nikkei index has reached an all-time high, crossing the 51,000-mark on October 30, 2025, with a 14% increase in the past month [1] - The Bank of Japan (BoJ) has maintained its policy rate at 0.5% and is not in a hurry to tighten monetary policy despite inflation expectations [2][3] - Prime Minister Sanae Takaichi supports "Abenomics" and aims to enhance investment in strategic sectors, which may lead to a weaker yen [4][5] Monetary Policy - The BoJ is expected to keep its monetary policy loose, with inflation projected at 2.7% for fiscal 2025, 1.8% for fiscal 2026, and 2.0% for fiscal 2027 [2] - Two board members advocated for a 25 basis points rate hike, but the majority preferred to wait for further assessment [2] Economic Environment - Japan's exports have faced a weakening environment, having dropped for four consecutive months before a slight increase in September [3] - A weaker yen could enhance the profitability of export-oriented sectors, benefiting from repatriated income [5] Investment Opportunities - The rally in Japanese equities is expected to increase demand for Japan-focused large-cap ETFs, such as WisdomTree Japan Hedged Equity Fund (DXJ) and iShares Currency Hedged MSCI Japan ETF (HEWJ) [6][7] - ProShares UltraShort Yen (YCS) is anticipated to benefit from a declining yen, with the Invesco CurrencyShares Japanese Yen Trust (FXY) losing 3.2% over the past month [5][8]

Core Insights - The WisdomTree Japan Hedged Equity Fund (DXJ) has increased nearly 21% year-to-date, showcasing its resilience despite a weak dollar environment [1] - The fund's performance is expected to benefit from the ascension of Sanae Takaichi as Japan's first female prime minister, who is anticipated to continue pro-market reforms [2][3] Fund Performance - DXJ has risen by 2.42% for the week ending October 21, indicating investor confidence in Takaichi's economic plans [3] - The pricing in of Takaichi's victory by Japan stocks and ETFs like DXJ reflects investor optimism regarding her economic strategies [4] Economic Policies - Takaichi is viewed as a leader focused on targeted public investment, with fiscal expansion likely to remain central to her policies, particularly in defense, technology, energy, and cybersecurity [5] - The ETF allocates 25.63% of its weight to industrial stocks and nearly 11% to technology stocks, making these sectors crucial for prospective investors [5] Market Sentiment - Global investors are increasingly embracing Japan's equities, which may signal confidence in Takaichi's platform and encourage American market participants to engage with DXJ [6] - Political stability and renewed fiscal ambition under Takaichi are seen as providing fresh impetus for a rally in Japan's markets [7]

Core Insights - All nine global indexes tracked have shown gains through October 27, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 34.7% [2] - Japan's Nikkei 225 follows with a 26.6% gain, while Canada's TSX has increased by 22.5% [2] - India's BSE SENSEX has the smallest year-to-date gain at 6.1% [2] Index Performance Context - A table is provided that compares each index's current value to its all-time peak, including the date of that peak and the distance from that record level [3] - Historical performance is illustrated, showing the comparative performance of world markets since March 9, 2009, with various indexes indexed to 800 on that date [5] - Additional charts provide insights starting from October 9, 2007, and the turn of the century, allowing for a longer view of relative performance [6] Index Tracking Methodology - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Core Insights - Japanese Prime Minister Sanae Takaichi is implementing a post-election agenda that could significantly impact investment opportunities, particularly in legacy Japan ETFs [1] - The agenda emphasizes shareholder rewards, with Japanese companies increasingly engaging in stock buybacks and raising dividends, which aligns with Takaichi's goals [3][4] - The WisdomTree Japan Opportunities Fund (OPPJ) and WisdomTree Asia Defense Fund (WDAF) are highlighted as potential beneficiaries of this agenda [2][6] Group 1: Investment Opportunities - The WisdomTree Japan Opportunities Fund (OPPJ) aims to capture Japan's shareholder yield opportunities, which are becoming more relevant as companies focus on shareholder rewards [3] - Shareholder payouts in Japan have quadrupled over the past decade, with buybacks now surpassing total dividends from ten years ago [4] - OPPJ has significant allocations to Japan's trading houses, with approximately 45% of its weight in stocks that are also part of Warren Buffett's investments, providing greater exposure to these assets [5] Group 2: Defense Spending - Takaichi is prioritizing increased defense spending, which could enhance the relevance of the WisdomTree Asia Defense Fund (WDAF) [6] - Japan is the third-largest country exposure in WDAF, which is timely as several Asian economies, including India and South Korea, are also increasing their defense budgets [7] - South Korea is becoming a key player in defense exports, while India is focusing on transforming procurement into production, reshaping its defense ecosystem [8]

Core Insights - All nine global indexes tracked have shown gains through October 20, 2025, with Hong Kong's Hang Seng leading at a year-to-date gain of 31.8% [2] - Japan's Nikkei 225 follows with a 23.3% gain, while Canada's TSX has a 22.2% gain, and India's BSE SENSEX has the smallest gain at 5.5% [2] Index Performance - The performance of the indexes is compared to their historical peaks, providing context on their current values relative to all-time highs [3] - A chart illustrates the comparative performance of world markets since March 9, 2009, with various indexes indexed to 800 on that date for visualization [5] - Another chart starts from October 9, 2007, showing relative performance during a previous market peak [6] Index Tracking - The DAXK is tracked as a price-only index for consistency with other indexes that do not include dividends [8]

Core Viewpoint - The WisdomTree Japan Hedged Equity Fund (DXJ) has outperformed the S&P 500 by nearly 300 basis points year-to-date as of September 30, indicating strong performance despite a stagnant U.S. dollar [1] Performance Metrics - Over the five years ending September 30, DXJ outperformed the unhedged MSCI Japan Index by approximately 5-to-1 and provided returns that were slightly more than double those of the S&P 500 [2] Investment Sentiment - BlackRock identifies Japan as a preferred investment destination, highlighting the Bank of Japan's gradual move towards monetary policy normalization without disrupting global markets, which is favorable for DXJ [3] Corporate Governance and Technology - Japan's corporate governance initiatives and the globalization of AI are significant factors contributing to DXJ's appeal, with over 10% of its portfolio allocated to technology stocks [4] Shareholder Gains - Corporate governance reforms in Japan are leading to tangible shareholder gains, including improved performance and increased share buybacks, which are attracting foreign investors back to Japanese equities [5] Buyback Trends - Share buybacks in Japan have surged, with the first eight months of 2023 nearly matching the total for the entire previous year, indicating a strong reform momentum [6] Return on Equity - Japan's return on equity is at its highest levels in 40 years, suggesting that DXJ offers a quality investment linked to favorable monetary and corporate policies that could enhance returns in Japan's risk assets [6]

Group 1 - The global markets watchlist includes nine prominent indexes from various economies, such as the S&P 500, TSX, FTSE 100, DAXK, CAC 40, Nikkei 225, Shanghai, Hang Seng, and BSE SENSEX [1] - As of September 29, 2025, all nine indexes have shown gains, with Hong Kong's Hang Seng leading at a year-to-date gain of 37.4%, followed by Canada's TSX at 22.6% and Japan's Nikkei 225 at 20.2%. India's BSE SENSEX has the smallest gain at 2.3% [2] - A comparative performance chart illustrates the indexes' performance since March 9, 2009, showing the relative changes from their respective lows [5] Group 2 - A historical context is provided for the indexes, including their current values, all-time peaks, and the dates of those peaks, highlighting how far they are from record levels [3] - The performance of world markets is also analyzed in relation to recent recessions, starting from February 3, 2020, which marks the official start of the NBER recession [4] - A longer-term performance analysis begins from October 9, 2007, capturing the mid-point of market peaks for a comprehensive view of the indexes' relative performance [6]