Japan Quant Strategy Difficult to find “runaway winners” other than Momentum – Unusual situation in which beneficiaries of bull market are shrinking rather than expanding continues

Research evidence excerpt

Japan Quant Strategy Difficult to find “runaway winners” other than Momentum – Unusual situation in which beneficiaries of bull market are shrinking rather than expanding continues

J P M O R G A N Global Markets Strategy

14 May 2026

Japan Quant Strategy

Difficult to find “runaway winners” other than Momentum

– Unusual situation in which beneficiaries of bull market

are shrinking rather than expanding continues

Today (May 14) the Nikkei Average is trading in the 63,500 range, near a record Global Quantitative and Derivatives

high. Bullish sentiment continues, fueled by the uptrend in semiconductor and tech Strategy

stocks in the US market. However, the decline in the TOPIX index should serve as Masanari Takada AC

a reminder that we should be cautious about applying this optimism (81-3) 6736-8636

indiscriminately to the entire market. The divergence between the indices is not just masanari.takada@jpmorgan.com

a difference between constituent stocks but also a clue that calls into question the JPMorgan Securities Japan Co., Ltd.

very nature of the current bull market. In order to accurately grasp the actual Tony SK Lee

situation of Japanese stocks, it appears necessary to return to discussions that (852) 2800-8857

tony.sk.lee@jpmorgan.com

focused on supply and demand and performance by strategy. J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

This dynamic is also reflected in global hedge fund performance. During the Robert Smith, PhD

recovery period (starting in April) following the downturn sparked by the Middle (61-2) 9003-8808

East conflict, nearly all strategies (except bond strategy) have mostly recouped robert.z.smith@jpmorgan.com

J.P. Morgan Securities Australia Limited

their March losses.