On Monday, Asia-Pacific markets showed mixed results as investors reacted to new 30% tariffs imposed by US President Donald Trump on the European Union and Mexico over the weekend.
Hong Kong’s Hang Seng Index increased by 0.26% while South Korea’s Kospi index gained 0.83%.
Japan’s Nikkei 225 benchmark fell by 0.28%. In contrast, the broader Topix index remained almost unchanged.
Additionally, Japanese government bond yields also moved higher. On Monday, the yield on the 10-year government bond increased by 5.5 basis points to reach 1.554% at 11.20 a.m. local time. Earlier in the day, it hit its highest level since May 22. When bond prices rise, yields fall.
The yield on 30-year Japanese government bonds increased by 6.5 basis points to 3.111%. Meanwhile, the yield for 20-year bonds rose slightly to 2.56%.
With this background in mind, let’s take a look at the 13 best Japanese stocks to buy according to hedge funds.
An array of Japan exchange listed fund symbols on a large trading screen.
Our Methodology
To compile our list of the 13 best Japanese stocks to buy according to hedge funds, we used stock screeners from Finviz and Yahoo Finance to find the largest Japanese companies. We also reviewed various financial media reports and online resources to compile a list of the best Japanese stocks to buy. Next, we focused on the top 13 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 13 best Japanese stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Japanese Stocks to Buy According to Hedge Funds
13. BloomZ Inc. (NASDAQ:BLMZ)
Number of Hedge Fund Holders: 1
BloomZ Inc. (NASDAQ:BLMZ) is one of the best Japanese stocks to buy according to hedge funds. On May 22, BloomZ Inc. (NASDAQ:BLMZ) announced a business partnership with M-NEXT Holdings Co., Ltd., the parent company of O&A Co., Ltd., which operates the popular trading card specialty shop “Ryusei no Arashi” in Japan.
Through this partnership, M-NEXT and BloomZ Inc. (NASDAQ:BLMZ) will work together to create new and fun entertainment experiences for customers. The companies will combine BloomZ Inc.’s (NASDAQ:BLMZ) capabilities in planning and production through its VTuber and sound production business with M-NEXT’s retail store operations capabilities.
BloomZ Inc. (NASDAQ:BLMZ) plans to use its VTubers and voice actors to help design in-store event spaces. These spaces will be developed like open-concept radio studios where live, interactive events can be hosted. M-NEXT will also benefit as these events are designed to strengthen fan engagement and bring more traffic to the “Ryusei no Arashi” stores.
Both companies believe that this partnership will drive growth and generate new business opportunities for them.
BloomZ Inc. (NASDAQ:BLMZ) is a holding company that operates BloomZ in Japan, which specializes in sound production for games and anime. BloomZ also manages, trains, and promotes voice actors and VTubers.
12. Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF)
Number of Hedge Fund Holders: 1
Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF) is one of the best Japanese stocks to buy according to hedge funds. On June 26, Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF) reported that it has incorporated a new subsidiary in Australia. The company announced plans to open a directly operated store under its own “Tokyo Lifestyle” brand in Sydney in November 2025.
This is a strategic move by Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF) as it focuses on expanding its international footprint and strengthening its sales network in the Oceania region.
The new store will be run by TOKYO LIFESTYLE PTY LTD, which is a new Australian subsidiary that is 51% owned by TOKYO LIFESTYLE LIMITED, a wholly-owned Hong Kong subsidiary of Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF). The Store will be located at Dixon Street, Haymarket, Sydney. This area is at the heart of Sydney’s Chinatown, a busy and well-known place that attracts many tourists and locals.
By opening the store in such a location, Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF) expects to make its brand more visible in the region and to accelerate its market penetration in Australia.
Tokyo Lifestyle Co., Ltd. (NASDAQ:TKLF) is a Japanese company that is engaged in the retail and wholesale of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trending products, and other products in Hong Kong, Japan, North America, Thailand, and the United Kingdom.
