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Asia Ex-Japan (AxJ)

Asia Ex-Japan (AxJ)

What Is Asia ex-Japan (AxJ)?

Asia ex-Japan (AxJ) alludes to the economic region of countries situated in Asia, yet excluding Japan. These countries are generally considered emerging markets and are of interest to investors searching for high-growth investment opportunities. In the interim, Japan is frequently viewed as a developed economy.

Grasping Asia Ex-Japan (AxJ)

Asia ex-Japan is a famous strategy with various indexes and funds. These countries include a huge portion of the world's emerging market countries.

Emerging market countries are of interest to investors in view of their true capacity for growth. These countries are believed to be in a high growth phase. Emerging market analysis ordinarily thinks about macroeconomic conditions, quickly expanding GDP rates, political stability, legal property rights, capital processes, and trading and settlement procedures while classifying a country as an emerging market.

Asia's emerging market countries have been exporting more commodities and expanding electronic manufacturing. Growth in China explicitly has additionally been raising with leading innovation and developing adoption of new financial technology offerings. Asia's developing middle class has likewise been a huge factor for the region's growth. Mutual funds that are classified as Asia ex-Japan try to zero in on stocks in these countries exhibiting high growth potential.

Japan is excluded from investment strategies zeroed in on Asia since it is a highly developed economy. As the main developed economy in Asia, companies in the country will be found in developed market indexes alongside the stocks of Europe, the U.S. what's more, Canada.

Asia Ex-Japan Indexes

To invest in the emerging market countries in the Asia ex-Japan universe numerous investors might seek indexes for passive management draws near. Top indexes incorporate the MSCI All Country Asia ex-Japan Index, the FTSE Asia ex-Japan Index and the Markit iBoxx USD Asia ex-Japan Index.

Asia Ex-Japan Funds

Both equity and bond mutual funds are managed to remember securities from countries for the Asia ex-Japan region. Two of the categories top performing funds are incorporated below.

Morgan Stanley Asia Opportunity Fund

The Morgan Stanley Asia Opportunity Fund has a five-year average annual return of 12.02% as of April 20, 2022. The return for its benchmark, the MSCI All Country Asia ex-Japan Index, was 6.75% for the equivalent time span. The Fund is actively managed and tries to invest in top companies from the Asia ex-Japan universe. As of March 31, 2022, its most prominent allocations were to consumer discretionary and financials.

Fidelity Emerging Asia Fund

The Fidelity Emerging Asia Fund has a one year return of - 32.66% through March 2022. The comparable one year return for the MSCI All Country Asia ex-Japan Index during the equivalent time span was - 14.64%. The Fund basically invests in Asian emerging market companies. As of March 31, 2022, 85% of the Fund was invested in Asian emerging market equities with 47% of that invested in China. Top holdings through March 31, 2022 were Alibaba Group, Taiwan Semiconduct, Meituan, and Samsung.


  • Several benchmark indices and ETFs are accessible that track AxJ.
  • Numerous Asian countries are viewed as emerging or creating markets, which numerous investors see as alluring as growth drivers.
  • Since Japan is a developed economy, emerging markets investors interested in the region would have no desire to hold securities from an advanced and mature economy.
  • Asia ex-Japan (AxJ) includes the Asian economic region however excludes Japan.