Weak yen boosts OPPJ; AI tech and investment support gains

The yen’s slide to multi-decade lows has supported export-focused Japanese equities and helped lift the WisdomTree Japan Opportunities Fund (OPPJ) by more than 26% in recent trading.

OPPJ is not currency-hedged and holds about $289.8 million in assets. The fund allocates roughly 52.59% to industrial stocks, many of which are exporters, and about 14% to technology companies, giving it exposure to firms engaged in automation and artificial intelligence.

Analysts caution that the direct effect of yen moves on corporate earnings appears modest. Amova Asset Management estimated that yen depreciation increases operating profits for Japanese firms by between 0.3% and 2.8% year-over-year. “Impacts from yen depreciation on operating profits range between 0.3% and 2.8% year‑over‑year, a stark contrast with the Nikkei’s outsized gains,” Amova wrote.

With deflation easing in Japan, corporate spending on technology has risen as companies seek higher productivity. Amova noted the need for coordination between fiscal and monetary policy and observed “signs of sustainable, productivity‑enhancing investment.”

The fund’s sector mix means its returns reflect both currency movements and shifts in corporate investment patterns. During the period of yen weakness, the Nikkei Stock Average reached new highs.