If Japan's Stock Market Rally Returns, These 3 ETFs Could Benefit

The Nikkei 225's momentum throughout 2023 and 2024 accelerated in 2025 and early 2026, but in the second half of the year the rally stalled and began to reverse course. While the index has still climbed by about 21% year to date (YTD) overall—easily beating the S&P 500 over the same period—the reliance of Japanese equities on the global AI investment cycle means that a continuation of the AI sell-off may hit the Nikkei particularly hard.