S&P Investment Strategy Department has published a monthly performance report on Japan-focused indices as of 31 July 2026. Japanese equities traded within a narrow range in July, while the Japanese yen rose sharply and sector and factor rotation was observed.
According to a monthly performance report on Japan-related indices published by S&P Dow Jones Indices, Japanese equities posted a modest monthly gain in July, bringing their year-to-date return to approximately 19%. Major indices, including the S&P Japan 500, showed mixed performance, with some rotation among sectors. Against the backdrop of reports of government foreign-exchange intervention, the Japanese yen rose sharply against the US dollar, ending the month up approximately 2%.
By sector, energy was the top performer on rising crude oil prices, followed by financials. Information technology fell sharply amid concerns over overheating in AI-related investment, while materials also declined. Among factor indices, Enhanced Value was the top performer, while Momentum fell on a reversal after its year-to-date gains.
Japanese government bonds remained under pressure amid expectations that fiscal stimulus would continue. The iBoxx Japan Government Bond Index fell by approximately 1%, and the yield reached approximately 3.08%. Commodities showed signs of recovery, with crude oil futures rising approximately 23% in July. Digital assets entered a recovery phase, with the S&P Cryptocurrency Broad Digital Index rising approximately 7%.
A note at the end of the article states that details of fixed-income indices are available in the APAC Dashboard and provides registration information for readers wishing to receive dashboard updates. The source is S&P Dow Jones Indices LLC and its affiliates.
The source information was reported by the same outlet, with finance.yahoo.co.jp identified as the supporting source.