In this article, we will list the 5 Best Japanese Stocks to Buy Right Now. Please visit 11 Best Japanese Stocks to Buy Right Now if you would like to see the extended list and the methodology behind it.
5. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Market Capitalization: $51.49 Billion
Number of Hedge Fund Holders: 19
Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the best Japanese stocks to buy right now. On April 6, Denali Therapeutics said Takeda Pharmaceutical Company Limited (NYSE:TAK) is ending its collaboration on DNL 593.
The two companies were working on developing the investigational therapy for frontotemporal dementia caused by granulin gene mutations. The candidate drug leverages Denali’s Protein Transport Vehicle technology to deliver progranulin across the blood-brain barrier. Takeda Pharmaceuticals terminated the collaboration for strategic reasons, not due to efficacy or safety concerns.
Takeda has embarked on a restructuring drive to streamline its operations and bankroll upcoming drug launches and its late-stage pipeline. The company has set its sights on $1.26 billion in annual gross savings by 2028 as part of the restructuring drive. The initiative is part of the next step in the company’s transformation under a new business structure unveiled early in the year that seeks to enhance operational efficiency.
Takeda Pharmaceutical Company Limited (NYSE:TAK) is a global, R&D-driven biopharmaceutical leader headquartered in Japan that discovers, develops, and delivers life-transforming treatments. It focuses on five core therapeutic areas: Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology, and Neuroscience, plus targeted investments in Vaccines.
4. Toyota Motor Corporation (NYSE:TM)
Market Capitalization: $226.47 Billion
Number of Hedge Fund Holders: 20
Toyota Motor Corporation (NYSE:TM) is one of the best Japanese stocks to buy right now. On April 16, Toyota Motor Corp (NYSE:TM) announced a strategic collaboration with Isuzu Motors Limited to mass-produce a light-duty fuel-cell electric truck.
Production is to begin in fiscal year 2027, and the light-duty truck is to be based on Isuzu’s ELF EV battery truck, launched in 2023. It will also incorporate Toyota’s third-generation fuel cell system, with both companies working on a system that ensures compatibility for commercial vehicle operation. The companies are also seeking to reduce costs through optimized vehicle body structures.
Toyota and Isuzu are working on a light-duty truck as they have become popular for deliveries to supermarkets and convenience stores that require long operating hours and multiple daily trips. By working on a fuel-cell electric truck, the companies seek to take advantage of high-utilization applications, including shorter refueling times.
Toyota Motor Corporation (NYSE:TM) is a global leader in the automotive industry, designing, manufacturing, and selling a wide range of passenger cars, trucks, and commercial vehicles under the Toyota, Lexus, and Daihatsu brands.
3. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)
Market Capitalization: $132.16 Billion
Number of Hedge Fund Holders: 21
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) is one of the best Japanese stocks to buy right now. On April 22, its SMBC Americas unit launched new cash management and payment features via SMBC Connect.
The new offering is designed to support the payment and liquidity management needs of global clients. SMBC Connect is tailored for online banking and available to US clients. It will include intuitive tools and artificial intelligence integration to mitigate the growing threat of fraud. The solution also provides real-time updates to improve tracking and reduce follow-up.
Earlier on April 9, Sumitomo Mitsui Financial Grp, aircraft leasing subsidiary SMBC Aviation Capital Limited, inched a step closer to acquiring Air Lease Corporation, a US-based aircraft leasing company. The unit has already secured regulatory approvals and clearances from relevant authorities.
With the acquisition, it is poised to solidify its position as a leader in the aircraft leasing industry. The acquisition also paves the way for the company to continue offering aircraft leasing services and investment opportunities.
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) is a leading Japanese bank holding company and one of the world’s largest financial institutions. It provides comprehensive financial services, including banking, leasing, securities, credit cards, and consumer finance, through subsidiaries like Sumitomo Mitsui Banking Corporation (SMBC).
2. Mitsubishi UFJ Financial Group Inc. (NYSE: MUFG)
Market Capitalization: $196.85 Billion
Number of Hedge Fund Holders: 26
Mitsubishi UFJ Financial Group Inc. (NYSE: MUFG) is one of the best Japanese stocks to buy right now. On April 22, Reuters reported Mitsubishi UFJ Financial Group Inc. (NYSE:MUFG) is seeking partners for risk-sharing to expand financing beyond traditional loans.
The company is reportedly eyeing life and non-life insurers as it seeks to spread the risk while offering financing for large corporate deals, including leveraged buyouts. The push comes as the company seeks to limit funding through its own balance sheet to reduce the risks associated with financing such deals.
According to MUFG Bank CEO Masakazu Osawa, the more diversified the funding sources for such deals, the better. Mitsubishi UFJ Financial Group is seeking partners to capitalize on the growing appetite for major M&A activity among Japanese firms. The executive is courting life and non-life insurers, as they hold long-term capital, alongside government entities and private credit funds.
Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) is one of the world’s leading diversified financial groups, based in Tokyo, providing global commercial banking, trust banking, securities, credit cards, consumer finance, and asset management. With over 350 years of history, it serves clients through a global network in 50 countries.
1. Sony Group Corp (NYSE:SONY)
Market Capitalization: $116.85 Billion
Number of Hedge Fund Holders: 28
Sony Group Corp (NYSE:SONY) is one of the best Japanese stocks to buy right now. On April 17, Reuters reported that Sony Group Corp (NYSE:SONY) and its strategic partner, Honda Motor, are poised to pursue other opportunities as part of their 50-50 joint venture. The push comes weeks after the two canceled the development of the Afeela 1 electric vehicle as part of their 50-50 Sony Honda Mobility joint venture.
The joint venture came into being as part of an effort that sought to pair Honda’s engineering and manufacturing with Sony’s software and gaming capabilities. The ultimate goal was to team up and catch up with other electric vehicle rivals.
Sony and Honda have already opened discussions on the development of non-EV products and services as part of the new initiative. The companies are also confident they can find other applications for Afeela 1 technologies, such as an artificial intelligence assistant and an audio system.
On the other hand, Morgan Stanley has reiterated that artificial intelligence could cut video game development costs and unlock $22 billion in annual profits for game makers. Sony is one of the companies that would benefit from integrating AI into its gaming environment.
Sony Group Corp (NYSE:SONY) is a diversified global conglomerate focused on entertainment, technology, and services. Its core activities include gaming (PlayStation), music, motion pictures, television, professional media solutions, and consumer electronics, such as TVs, cameras, and audio devices.
While we acknowledge the potential of SONY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SONY and that has 100x upside potential, check out our report about the cheapest AI stock.
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