URGENT UPDATE: Warren Buffett’s Berkshire Hathaway has just announced a significant increase in its investments in Japanese stocks, reflecting a growing trend among global investors. This move coincides with a record-breaking inflow of $6 billion into Japanese ETFs just last month, as reported by Global X.
According to the ETF Market Scoop – October 2025 report, this surge in investments marks a new high, surpassing the previous record of $5.8 billion set in July 2025. The total inflows for 2025 are projected to reach an astounding $50 billion, significantly exceeding last year’s record of $31 billion. This year is shaping up to be a remarkable period for ETFs, with a notable increase in interest towards Japanese equities.
The report reveals that Australian investors are particularly enthusiastic, with $167 million flowing into Japanese equities in October alone. This newfound optimism around Japanese stocks is fueled by several compelling catalysts, including a normalization of inflation, which has long been stagnant. As a result, companies are gaining pricing power, driving wage growth, and facilitating reinvestment opportunities.
Global X highlights that recent corporate governance reforms led by the Tokyo Stock Exchange are encouraging firms to repurpose excess cash, boost dividends, and execute stock buybacks. The TOPIX index, a major benchmark for Japanese stocks, is currently outperforming both the S&P 500 and the S&P/ASX 200.
This shift in investor sentiment is not limited to individual investors. Warren Buffett and his Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) are seizing opportunities in this transforming market, citing attractive valuations, robust balance sheets, and effective capital deployments as key reasons for their increased focus on Japan.
As Japan undergoes a transformation marked by moderate inflation and robust governance reforms, it is shedding its past image of stagnation. This favorable environment has caught the attention of not only the likes of Buffett but also a broader base of institutional investors.
For those looking to gain exposure to this booming market, several ASX ETFs are available. The iShares MSCI Japan ETF (ASX: IJP) targets large and mid-cap Japanese companies, offering a diversified investment option. Additionally, the BetaShares Japan ETF – Currency Hedged (ASX: HJPN) provides a hedge against currency fluctuations while tracking top-performing Japanese firms.
Moreover, Global X is set to launch its first Japan ETF, tracking the TOPIX index, under the ticker J100 this month. This new offering will be the first of its kind on the ASX, further broadening investment opportunities in the Japanese market.
As financial markets react to these developments, investors are urged to stay informed and consider their options strategically. With the momentum building for Japanese stocks, the time to act is now.
Stay tuned for further updates on this rapidly evolving situation and what it means for investors globally.
