Japan has recently come under pressure from tariffs imposed by the Trump administration, yet foreign capital continues to flood into the country. The U.S.-Japan trade talks are at a stalemate, with key issues focused on agricultural products and auto tariffs. Trump has publicly criticized Japan for refusing to import U.S. rice while insisting on a 25% tariff on Japanese cars. This situation is not only related to economic interests but is also closely tied to Japan's political landscape, especially with the upcoming Upper House elections. A concession to the U.S. could jeopardize the ruling Liberal Democratic Party's voter base. The deadline for negotiations has been extended to August 1, and Trump's tariff threats are seen as a pressure tactic aimed at hastening negotiations.

According to Nomura Asset Management, further negotiations will likely occur only after the Upper House elections, with market fluctuations expected in the coming weeks. Although the Japanese stock market may face short-term disturbances, the economic fundamentals remain robust, and any downturn due to tariff news may create opportunities for long-term investments.

Additionally, foreign investors are showing a growing interest in Japan's real estate market. Recent data indicates the average annual growth rate of the Tokyo residential price index reached 7.3% over the past year, confirming an upward trend in real estate prices. American investment firm Loomis Sayles is optimistic about the structural transformation of the Japanese market, believing it will attract significant foreign investment and highlighting the ongoing stable growth of the Japanese economy.