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The Zacks Analyst Blog Highlights EWJ, SPY, OPPJ, FJP, JPXN, SCJ and DFJ
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For Immediate Release
Chicago, IL – February 12, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares MSCI Japan ETF (EWJ - Free Report) , State Street SPDR S&P 500 ETF Trust (SPY - Free Report) , WisdomTree Japan Opportunities Fund (OPPJ - Free Report) , First Trust Japan AlphaDEX Fund (FJP - Free Report) , iShares JPX-Nikkei 400 ETF (JPXN - Free Report) , Japan Smallcap iShares MSCI ETF (SCJ - Free Report) and WisdomTree Japan SmallCap Dividend Fund (DFJ - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Japan ETFs Soar on "Takaichi Trade": Top Performers in Focus
Japanese equities surged to record levels after Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP) secured a landslide victory in the national election held on Feb. 8, 2026. The Nikkei 225 crossed the 57,000-mark for the first time on Feb. 10, 2026.
iShares MSCI Japan ETF has gained 9.2% over the past month and 14.5% so far this year (as of Feb. 10, 2026), clearly outstripping 1.3% year-to-date gains in State Street SPDR S&P 500 ETF Trust.
Landslide Election Victory Strengthens Government Control
The LDP won 316 out of 465 seats, marking the first time since 1947 that a single party has achieved a two-thirds majority in Japan's lower house, as mentioned on BBC. Coalition partner Japan Innovation Party added 36 seats, bringing the alliance's combined total to 352 seats. The win allows Takaichi to push forward pro-business reforms with limited resistance.
Policy Agenda Focused on Growth and Stimulus
Following the victory, Takaichi reiterated plans for a "responsible yet aggressive" fiscal strategy, including stimulus measures, tax adjustments and deregulation aimed at reviving economic growth, per the same BBC article.
Chris Scicluna, head of research at Daiwa Capital Markets Europe, told BBC that Takaichi's pledge to end austerity and intentions for increased investment in strategic sectors such as defense and artificial intelligence (AI) could further support Japan's ongoing equity market rally.
Raised Economic Growth Forecasts Ahead of Snap Election
In late January, the Bank of Japan upgraded its real economic growth forecast for the fiscal year 2025 to 0.9% from 0.7% in October 2025, and raised its GDP expansion outlook for the 2026 fiscal year to 1% from 0.7%.
Inflation will likely be in upward trajectory with the fiscal 2025 outlook being raised from 2.8% to 3%. Fiscal 2026 inflation is likely to be 2.2% compared with the 2% forecast made in October.
The central bank kept the benchmark interest rate steady in a split 8-1 decision on Jan. 23, after hiking it to the highest level in 30 years in December, as quoted on CNBC.
Can the Nikkei Rally Last?
The rising trend of inflation may deter the central bank from going for policy easing in the near term. Rahul Ghosh of T.Rowe Price noted that there is 'more bark than actual bite' when it comes to Takaichi's influence on the Bank of Japan's ongoing rate hiking cycle, as quoted on CNBC.
Moreover, the likelihood of more government spending and the suspension of sales tax on food has unnerved investors already concerned about Japan's debt burden, the largest in the developed world (as quoted on US News).
Uncertainty over funding risks could trigger a bond market sell-off and a rise in government bond yields. This, in turn, would increase the cost of servicing public debt that is roughly twice the size of Japan's economy (per Reuters). Deteriorating fiscal sustainability could also cause yen weakness and lead to higher import costs.
So, it all depends on how the prime minister deals with the entire scenario and to what extent a fiscal boost will be applied. It is also needed to be seen if any kind of yen intervention will be made. Till then, a short-term boost to equities should be seen.
ETF Winners
Against this backdrop, we highlight a few winning Japan ETFs. All these ETFs are at a 52-week high.
WisdomTree Japan Opportunities Fund– Up 8.5% over the past five days
First Trust Japan AlphaDEX Fund– Up 6.7% over the past five days.
iShares JPX-Nikkei 400 ETF– Up 6.4%
Japan Smallcap iShares MSCI ETF– Up 6.3%
WisdomTree Japan SmallCap Dividend Fund– Up 6.1%
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights EWJ, SPY, OPPJ, FJP, JPXN, SCJ and DFJ
For Immediate Release
Chicago, IL – February 12, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares MSCI Japan ETF (EWJ - Free Report) , State Street SPDR S&P 500 ETF Trust (SPY - Free Report) , WisdomTree Japan Opportunities Fund (OPPJ - Free Report) , First Trust Japan AlphaDEX Fund (FJP - Free Report) , iShares JPX-Nikkei 400 ETF (JPXN - Free Report) , Japan Smallcap iShares MSCI ETF (SCJ - Free Report) and WisdomTree Japan SmallCap Dividend Fund (DFJ - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Japan ETFs Soar on "Takaichi Trade": Top Performers in Focus
Japanese equities surged to record levels after Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP) secured a landslide victory in the national election held on Feb. 8, 2026. The Nikkei 225 crossed the 57,000-mark for the first time on Feb. 10, 2026.
iShares MSCI Japan ETF has gained 9.2% over the past month and 14.5% so far this year (as of Feb. 10, 2026), clearly outstripping 1.3% year-to-date gains in State Street SPDR S&P 500 ETF Trust.
Landslide Election Victory Strengthens Government Control
The LDP won 316 out of 465 seats, marking the first time since 1947 that a single party has achieved a two-thirds majority in Japan's lower house, as mentioned on BBC. Coalition partner Japan Innovation Party added 36 seats, bringing the alliance's combined total to 352 seats. The win allows Takaichi to push forward pro-business reforms with limited resistance.
Policy Agenda Focused on Growth and Stimulus
Following the victory, Takaichi reiterated plans for a "responsible yet aggressive" fiscal strategy, including stimulus measures, tax adjustments and deregulation aimed at reviving economic growth, per the same BBC article.
Chris Scicluna, head of research at Daiwa Capital Markets Europe, told BBC that Takaichi's pledge to end austerity and intentions for increased investment in strategic sectors such as defense and artificial intelligence (AI) could further support Japan's ongoing equity market rally.
Raised Economic Growth Forecasts Ahead of Snap Election
In late January, the Bank of Japan upgraded its real economic growth forecast for the fiscal year 2025 to 0.9% from 0.7% in October 2025, and raised its GDP expansion outlook for the 2026 fiscal year to 1% from 0.7%.
Inflation will likely be in upward trajectory with the fiscal 2025 outlook being raised from 2.8% to 3%. Fiscal 2026 inflation is likely to be 2.2% compared with the 2% forecast made in October.
The central bank kept the benchmark interest rate steady in a split 8-1 decision on Jan. 23, after hiking it to the highest level in 30 years in December, as quoted on CNBC.
Can the Nikkei Rally Last?
The rising trend of inflation may deter the central bank from going for policy easing in the near term. Rahul Ghosh of T.Rowe Price noted that there is 'more bark than actual bite' when it comes to Takaichi's influence on the Bank of Japan's ongoing rate hiking cycle, as quoted on CNBC.
Moreover, the likelihood of more government spending and the suspension of sales tax on food has unnerved investors already concerned about Japan's debt burden, the largest in the developed world (as quoted on US News).
Uncertainty over funding risks could trigger a bond market sell-off and a rise in government bond yields. This, in turn, would increase the cost of servicing public debt that is roughly twice the size of Japan's economy (per Reuters). Deteriorating fiscal sustainability could also cause yen weakness and lead to higher import costs.
So, it all depends on how the prime minister deals with the entire scenario and to what extent a fiscal boost will be applied. It is also needed to be seen if any kind of yen intervention will be made. Till then, a short-term boost to equities should be seen.
ETF Winners
Against this backdrop, we highlight a few winning Japan ETFs. All these ETFs are at a 52-week high.
WisdomTree Japan Opportunities Fund– Up 8.5% over the past five days
First Trust Japan AlphaDEX Fund– Up 6.7% over the past five days.
iShares JPX-Nikkei 400 ETF– Up 6.4%
Japan Smallcap iShares MSCI ETF– Up 6.3%
WisdomTree Japan SmallCap Dividend Fund– Up 6.1%
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Get it now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.