Why iShares MSCI Japan ETF (EWJ) fell 1.62%
iShares MSCI Japan ETF (EWJ) fell 1.62% on July 27, 2026 — BoJ rate hike signals lift yen, weigh equities.
What happened
The Bank of Japan is set to signal more rate hikes as price pressures build.
Why it moved
Rate-hike signals strengthen yen expectations and compress Japanese equity valuations in a higher-rate regime, pressuring growth stocks especially.
Why it matters
Japan's rate normalization cycle is now driving simultaneous yen strength and equity weakness — the unwind of yen-carry dynamics.
What would break the thesis
If the BOJ signals a slower pace or pulls back on hike guidance, yen weakness could reverse and support equities.
Sources
- Bank of Japan to signal more rate hikes as price pressures build — Investing.com