"Japan To Allow Arms Exports To Patent-Holder Nations; Japan Plans To Permit Exports Of All Defense Equipment Produced Under Foreign Licenses To Countries Where Those Patent Holders Are Based" - Nikkei Asia
Portfolio Pulse from Benzinga Newsdesk
Japan is set to relax its arms trade regulations by allowing exports of all defense equipment produced under foreign licenses to the countries where the patent holders are located. This decision was reached by a working group under Japan's ruling Liberal Democratic Party and its coalition partner Komeito.
December 13, 2023 | 8:11 pm
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The iShares MSCI Japan ETF (EWJ), which tracks the investment results of a broad-based index composed of Japanese equities, may see a positive impact as Japan's decision to allow arms exports could bolster the defense sector.
While the ETF itself is not directly involved in defense, the policy change could lead to increased business for Japanese defense companies included in the ETF's holdings. This could result in a positive sentiment among investors towards Japanese equities, particularly in the defense industry, and thus potentially increase the value of EWJ in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70