Warren Buffett’s Berkshire Hathaway has increased its exposure to Japanese stocks and here’s why you should too!

A new report from ASX ETF provider Global X shows there were record-breaking inflows in Japanese stocks in October.

According to the ETF Market Scoop – October 2025 report, investors poured a record $6 billion into ETFs last month. This surpassed the previous high of $5.8 billion set in July 2025. 

Total inflows are on track to reach $50 billion in 2025. This is significantly above the $31 billion record in 2024. Ultimately, this year is shaping up to be a record-breaking year for ETFs.

Interestingly, the report shed light on increased appetite for Japanese securities. 

Optimism in Japanese stocks

According to Global X, October 2025 saw an impressive surge of Australian ETF inflows into Japanese equities of $167 million.

So why invest in Japanese stocks?

The team at Global X believe the case for investing in Japan is compelling. 

The report from the ETF provider pointed to a few key catalysts. 

It said Japanese inflation is normalising, ending decades of deflation and unlocking pricing power, wage growth, and reinvestment. 

Additionally, sweeping corporate governance reforms driven by the Tokyo Stock Exchange and regulators are prompting companies to repurpose excess cash, increase dividends, and engage in buybacks. 

Blue-chip firms now boast stronger shareholder-friendly practices and meaningful alignment with global megatrends like AI, EVs, and energy transition.

In fact, in 2025, the TOPIX index (major index for the Tokyo Stock Exchange) is outperforming the S&P 500 Index (SP: .INX) and the S&P/ASX 200 Index (ASX: XJO). 

Warren Buffett’s Berkshire Hathaway increases its exposure

It’s not just ETF investors who are taking notice of the tailwinds for Japanese stocks. 

Global X said that major investors have also started taking note. Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) increased its exposure to Japanese companies on the grounds of compelling valuation, strong balance sheets, and efficient capital deployment.

Taken together, these forces mark Japan’s equity market not as a relic of past stagnation but as a genuine transformation engine – moderate inflation, governance reform, global industrial leverage and renewed investor interest combine into a favourable backdrop.

How to gain exposure

For Australian investors seeking exposure to Japanese stocks, there are several ASX ETFs to consider. 

Firstly, the iShares MSCI Japan ETF (ASX: IJP). 

The fund is designed to measure the performance of Japanese large & mid-capitalisation companies.

Secondly, investors could consider the BetaShares Japan ETF – Currency Hedged (ASX: HJPN). 

The fund aims to track the performance of an index (before fees and expenses) that provides diversified exposure to the largest globally competitive Japanese companies, hedged into Australian dollars.

Finally, a report from Financial Standard from noted Global X is set to launch its first Japan ETF this month. 

Unlike other ETFs available right now, it will be the first to track the TOPIX – the Japanese equivalent of the ASX 200.

According to the report, it will be listed on the ASX under the ticker code of J100.

The post Warren Buffett’s Berkshire Hathaway has increased its exposure to Japanese stocks and here’s why you should too! appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.