US investors are increasing their exposure to Japanese stocks, especially in tech and AI.

It's no wonder: the Nikkei is up ~30% in dollar terms this year, compared to ~14% for the S&P.

With pro-market reforms and a stronger yen, foreign inflows are at their highest level since 2022.

If this movement continues, it could mark a structural shift, with more growth and innovation at the heart of the investment thesis, moving away somewhat from the old value cycle.