Global inflation and interest rate expectations, particularly from major central banks like the Fed, can influence global capital flows and risk sentiment, indirectly impacting Japanese equity markets and the value of the Yen.

Global economic growth, as exemplified by strong performance in sectors like AI (e.g., TSMC's earnings), can positively affect demand for Japanese exports and the profitability of companies within the ETF's underlying index.

Geopolitical developments, such as the Middle East conflict, can increase market volatility and lead to shifts in investor preferences towards or away from equity markets, including those in Japan.