What is AXJ?

AXJ (also written as AxJ) stands for Asia Excluding Japan. It refers to the economic region of Asian countries without Japan.

Japan is classified as a developed economy, so it is usually grouped with other advanced markets (such as the US, Europe, and Canada) rather than with the high-growth emerging markets of the rest of Asia.

Why Exclude Japan?

• Japan has a mature, developed economy with slower growth rates compared to many other Asian nations.
• Investors seeking exposure to emerging-market growth prefer to focus on faster-growing economies.
• Including Japan can dilute the growth characteristics of a pure Asia emerging-markets portfolio.

Key Countries in AXJ

The AXJ region typically includes:

• China (Mainland)
• India
• Taiwan
• South Korea
• Hong Kong
• Singapore
• Indonesia, Malaysia, Thailand, Philippines, and other Southeast Asian markets

Major indexes such as the MSCI All Country Asia ex Japan Index cover large- and mid-cap companies across these markets.

Why Investors Focus on AXJ

• High growth potential – Many AXJ economies have higher GDP growth rates than developed markets.
• Rising middle class – Expanding consumer markets in China, India, and Southeast Asia.
• Technology & manufacturing strength – Leadership in semiconductors, electronics, and digital services (Taiwan, South Korea, China).
• Diversification – Offers exposure outside traditional Western markets.

Popular AXJ Investment Vehicles

Common ways to invest in the region include:

• MSCI All Country Asia ex Japan Index
• FTSE Asia ex Japan Index
• ETFs such as iShares MSCI All Country Asia ex Japan ETF (AAXJ)
• Actively managed Asia Opportunity or Emerging Asia funds

Summary

AXJ Asia ex-Japan Emerging Markets

AXJ represents one of the most dynamic economic regions in the world. By excluding Japan, investors can focus on the higher-growth opportunities across Greater China, India, South Korea, Taiwan, and Southeast Asia.