Japan Equity Strategy Long-term uptrend in Japanese equities supported by capital flows: Individual investors and financial institutions awaken to Japanese equity investment

Research evidence excerpt

Japan Equity Strategy Long-term uptrend in Japanese equities supported by capital flows: Individual investors and financial institutions awaken to Japanese equity investment

J P M O R G A N Global Markets Strategy

09 June 2026

Japan Equity Strategy

Long-term uptrend in Japanese equities supported by

capital flows: Individual investors and financial

institutions awaken to Japanese equity investment

Looking at capital flows in the Japanese market, we see that overseas investors, the Equity Strategy

AClargest holders of Japanese equities, have remained strong net buyers in 2026 year-to- Rie Nishihara

date, comparable to 2023 and the Abenomics era (2012–2015). In global equity (81-3) 6736-8629

markets, we have observed a need to diversify some funds out of the US due to rie.nishihara@jpmorgan.com

concerns about market volatility risk from the AI-driven rally. As the Asian tech JPMorgan Securities Japan Co., Ltd.

market could resonate with the US market based on AI growth, the Japanese market, Yong Guo, CFA

with its diverse structural investment themes, is still viewed among investors as a (81-3) 6736-8623

yong.guo@jpmorgan.com

candidate for diversification. The more significant development is among individual JPMorgan Securities Japan Co., Ltd.

investors, who hold over ¥2,300 trillion in assets. Individual investors have increased

Mansi Das

their ratio of Japanese equities in NISA accounts to over 50%, and the weighting of (91) 2261 573343

Japanese equities in personal assets is approaching 20% (as of end-March 2026). mansi.das@jpmchase.com

Individual investors are set to surpass corporates and become the third largest holders J.P. Morgan India Private Limited

of Japanese equities, after overseas and domestic investors. Among financial