The Seven Samurai: Japan’s Answer to the Magnificent Seven

19 Aug 2025

While the US’ Magnificent Seven has been dominating headlines in recent years, Japan is staging its own blockbuster comeback. The Seven Samurai, consisting of seven of the country’s largest and most dynamic companies, are powering the Nikkei 225’s surge to record highs in 2025, offering investors both growth and diversification.

But why is Japan back in the spotlight? Several tailwinds are converging to create a once-in-a-generation opportunity:

Record Market Highs – In August 2025, the Nikkei 225 smashed the 43,000-point barrier for the first time in history. The rally reflects renewed investor confidence, driven by strong earnings, governance reform, and global liquidity.
ETF Inflows Surge – As of end-June 2025, assets under management in Japan’s ETF industry reached a record US $648.38 billion, marking a 13.2% year-to-date increase.
Corporate Reform – Japan’s Prime-listed companies have broadly adopted shareholder-friendly reforms – dividends and buybacks are increasingly common, supporting better investor sentiment.
Global Endorsements – At Berkshire Hathaway’s 2025 AGM, Warren Buffett reaffirmed his bullish stance on Japan, citing increased stakes in five major trading houses. Global funds followed suit, with record foreign inflows of ¥2.8 trillion in early April, underscoring Japan’s appeal as a stable, undervalued market.
Macro Tailwinds – The yen’s weakness has generally boosted exporters’ overseas earnings in yen terms. Meanwhile, the Bank of Japan’s exit from negative rates marks financial normalisation, improving bank margins and supporting insurers’ yields.

Meet the Seven Samurai – seven giants across tech, finance, autos, retail, and entertainment that embody Japan’s growth story:

1) Mitsubishi Corporation (TSE: 8058)

Japan’s largest trading house, and a Warren Buffett favorite, stunned markets with a ¥1 trillion buyback announced in April 2025, targeting 17% of outstanding shares. This followed a ¥500 billion repurchase in February 2024. With diversified exposure across energy, commodities, and infrastructure, Mitsubishi’s stock rose 5.95% YoY, reflecting investor confidence in its capital discipline and global reach.

2) Toyota Motor Corporation (TSE: 7203)

The world’s #1 automaker by units sold continues to dominate. For FY2025 (Ending March 2025), Toyota posted ¥48.04 trillion in revenue (+6.5% YoY) and in terms of sales volume, the carmaker sold a total of 10.274 million vehicles globally with their electric vehicles driving the trend. The stock is up 9.94% YoY, cementing Toyota’s role as a pillar of Japan’s industrial strength.

3) Nintendo Co., Ltd. (TSE: 7974)

Nintendo’s creative momentum shows no signs of slowing. The June 2025 debut of the Switch 2 ignited a blockbuster run, propelling both hardware and software sales. As of 19 August 2025, Nintendo holds ¥2.06 trillion in cash, remains debt-free, and has delivered a 54.09% YTD return, with 76.98% YoY. It’s a fortress of innovation and financial discipline.

4) Fast Retailing Co., Ltd. (TSE: 9983)

Fast Retailing powers ahead globally, with UNIQLO posting standout gains across Southeast Asia, North America, and Europe. For FY2025 (ending August 2025), the group guides for ¥3.4 trillion in revenue and ¥545 billion in operating profit – up 11.30% YoY. The stock has surged 15.59% YoY, reflecting investor confidence in its international momentum and disciplined execution.

5) Sony Group Corporation (TSE: 6758)

Sony thrives at the intersection of tech and entertainment. Its Games & Network Services division, led by PlayStation 5 and exclusive IPs, drove robust earnings. For FY2025 (Ending June 2025), Sony posted ¥1.14 trillion in net income, with a 57.52% stock gain YoY. With diversified strength across semiconductors, music, film, and insurance, Sony remains a global media-tech powerhouse.

6) Mitsubishi UFJ Financial Group, Inc. (TSE: 8306)

Japan’s largest bank is finally benefiting from rising rates. For FY2025 (ended March 2025), MUFG posted ¥1.26 trillion in net income, up 230% YoY, with a 23.1% profit margin. Its Southeast Asia expansion and digital transformation are unlocking new growth avenues. The stock climbed 45.93% YoY as of August 12, reflecting renewed investor optimism.

7) Tokyo Electron Limited (TSE: 8035)

Tokyo Electron, Japan’s top semiconductor equipment maker, plays a critical role in producing advanced chips used in AI servers and high-performance computing. While the stock surged in early 2024 on demand for advanced nodes and strategic investments, it has since pulled back, posting a – 24.36% YoY return as of August 2025. Still, Tokyo Electron’s upgraded profit forecast and strong ROCE underscore its long-term value in the AI hardware cycle.

*Stock performance as of 19 August 2025 based on data from Yahoo Finance.

As an investor, you can either invest in the Seven Samurai individually or take a broader approach with ETFs tracking the Nikkei 225 or TOPIX, offering a one-click access to Japan’s biggest and most liquid names. Popularly traded ETFs include:

1) iShares Core Nikkei 225 ETF (TSE: 1329)

This BlackRock-managed ETF tracks Japan’s iconic Nikkei 225, giving investors exposure to 225 of the country’s largest and most liquid stocks, including all Seven Samurai. With a +16.46% return YoY and ultra-low fee of about 0.05%, it’s a cost-efficient way to ride Japan’s large-cap momentum.

2) NEXT FUNDS TOPIX ETF (TSE: 1306)

Managed by Nomura, this ETF tracks the TOPIX index, offering exposure to over 2,000 Prime-listed Japanese companies. Unlike the price-weighted Nikkei, it delivers market-cap-weighted access across sectors, capturing financials, mid-caps, and governance reform beneficiaries. With a return of +18.05% YoY and a relatively low fee of 0.09%, it is a strong vehicle for investors seeking diversified participation in Japan’s equity resurgence.

From 15 August to 31 December 2025, Phillip Nova is making it even more rewarding with a special 0.08% commission and no minimum fee for all TSE-listed stocks and ETFs traded online — the lowest in Singapore.

Whether you prefer the precision of hand-picking the Samurai or the diversification of Nikkei and TOPIX ETFs, now is the time to ride Japan’s resurgence with Phillip Nova.

Trade Japan Stocks and ETFs at only 0.08% (with no minimum commission) on Phillip Nova 2.0 now! Click here to open an account now!

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An Exchange Traded Fund (ETF) is a marketable security that is formed to track nearly anything, ranging from a specific index, sector, commodity, or increasingly, theme. They are most commonly used to track a basket of stocks, and can typically be accessed through the same channels as regular stocks. ETFs are typically separated into passively-managed ETFs that simply mirror the security they are tracking (e.g. the STI), and actively managed ones that attempt to deliver higher returns or specific investment objectives, often with a pre-specified theme in mind (e.g. ARK Invest’s Innovation ETF).

Why should I trade in ETF CFDs?

ETFs have been growing in popularity over the years. 2020 was the best year for ETFs yet, with global equity ETFs seeing more than $1T in inflows within a 12-month period. Using CFDs to gain exposure to ETFs allows for greater capital efficiency because only a portion of the contract value is required as margin to establish a position.
ETFs are particularly popular with investors seeking a relatively hassle-free investing experience, while desiring exposure to a range of specific and relatively understandable securities. Trading ETF CFDs brings greater convenience by eliminating the need for traders to hold multiple currencies in order to access global ETFs.
An investor wanting exposure to the post-pandemic economic recovery could open a position in the well-known SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500. Another investor that may be convinced of the future importance of Environmental, Social and Governance concerns (ESG) may find the increasing selection of ESG-themed ETFs that track a basket of high ESG-rating companies to be a good investment, rather than cherry-picking individual equities by hand. ETF CFDs can act as a powerful tool for traders can profit from both directions of the market by taking on long or short positions.

A look at two ETF CFDs we offer:

1) Has the ARKK been sunk?

ARK Innovation ETF (ARKK) ARKK is an actively managed ETF by ARK Invest that invests in a range of companies based on their innovative and industry-disrupting potential. ARKK’s largest holdings are in companies such as Tesla, Square, and Zoom. ARKK is down around -33% from peaking on 12^th Feb and is currently in the red for the year to date as the market experiences a risk-off outflow of funds. Superstar fund manager Cathie Wood has however been consistently doubling down on her bets, buying even more shares in growth stocks that are going through their own tumultuous periods such as DraftKings, Peloton, Teladoc, and Tesla. In her view, ARKK is playing the long game, and remains steadfastly convinced in the long-term prospects of these growth stocks beyond this current bout of volatility. Similarly on outflows, investors are still betting big on ARKK as ARK Invest has only lost about $1.2B in assets this year across all its six funds, compared to seeing an inflow of $15.1B during the same period. Recently, investors have been nervously eyeing ARKK’s basket of tech stocks as their future earnings potential remain vulnerable to erosion through high inflation – the dominant concern of the market in recent weeks. As commodities – the major contributor to the recent heightened inflation fears – drops sharply from record highs, are investor concerns over hyperinflation overblown?

2) Searching for exposure to Asian equities?

iShares MSCI Asia ex Japan ETF (AAXJ) The AAXJ is currently trading -10.6% adrift of all-time highs seen in February, giving up gains in tandem with an Asia-wide equity sell-off at the time. Given that slightly over 40% of the ETF’s holdings are based in China, the ongoing tumult seen in Chinese equities currently have carried over nearly perfectly in the AAXJ, as Chinese investors take a breather after the stellar gains made over the past year. Looking ahead, Asia – and particularly China, is steaming ahead with its economic recovery. China is widely expected to be one of the best-performing major economies this year, providing a major boost to the outlook for corporate earnings. As the rest of Asia and the world gradually opens up their own economies, AAXJ is likely to again benefit from strong Asian outperformance amidst a strengthening trade outlook.

CFD is available for trading on Phillip MetaTrader 5 (MT5).

Features of trading CFD:

Trade in both the bull and the bear markets
The ability to enter a long and/or short position allow traders to take advantage of both rising and falling markets.
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Flexible and smaller contract sizes. This means that traders will be able to enter into a contract with a modest amount of capital.
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Unlike futures which commonly have a fixed expiration date, CFD allows traders to perpetually hold the position(s). CFD is cash settled, no need to worry about the delivery of the underlying asset.

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