Japan Quant Strategy Momentum’s remarkable resilience: Market sees a productivity improvement scenario that is more than double the pace achieved over the past 40 years

Research evidence excerpt

Japan Quant Strategy Momentum’s remarkable resilience: Market sees a productivity improvement scenario that is more than double the pace achieved over the past 40 years

J P M O R G A N Global Markets Strategy

27 May 2026

Japan Quant Strategy

Momentum’s remarkable resilience: Market sees a

productivity improvement scenario that is more

than double the pace achieved over the past 40

years

Resilient Momentum effects in the global market: In the current global equity Global Quantitative and Derivatives

market, the dominance of AI/semiconductor-related stocks is once again evident. Strategy

Following last week’s interest rate hikes in developed countries, some AI/ Masanari Takada AC

semiconductor-related stocks showed signs of falling back, and a momentum crash (81-3) 6736-8636

was observed in the Japanese market. However, the impact of this correction has masanari.takada@jpmorgan.com

been short-lived, and with dip-buying gaining traction over the reduction of JPMorgan Securities Japan Co., Ltd.

positions in seemingly overvalued, overheated stocks, upward momentum has Tony SK Lee

actually intensified. (852) 2800-8857

tony.sk.lee@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Looking at the key drivers in terms of flow, cash equity momentum strategies and Morgan Broking (Hong Kong) Limited

macro strategies were the main drivers of global hedge fund strategy performance Robert Smith, PhD

in May (as of the 25th) (Figure 2). In particular, since April cash equity momentum (61-2) 9003-8808

strategies have continually outperformed the market by a wide margin, with flows robert.z.smith@jpmorgan.com

J.P. Morgan Securities Australia Limited

linked to technical strategies, rather than fundamentals, assuming the lead in major

Khuram Chaudhry

regions.