*J.P. Morgan Asia FTM 29 Jun 26 Japan – ¥370 tn growth investment; Iluvatar – CSP design wins; Luxshare – Strong iPhone demand; EMC - Lead widening; TIME dotCom – init. at OW

Research evidence excerpt

*J.P. Morgan Asia FTM 29 Jun 26 Japan – ¥370 tn growth investment; Iluvatar – CSP design wins; Luxshare – Strong iPhone demand; EMC - Lead widening; TIME dotCom – init. at OW

Asia Pacific Equity Research

This material is neither intended to be distributed to Mainland China investors nor to provide securities

investment consultancy services within the territory of Mainland China. This material or any portion hereof

may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

Asia First to Market 29 June 2026

Top Stories

Japan Equity Strategy, Japan (Rie Nishihara)

JPM view on impact of ¥370 trillion growth investment in 17 strategic areas and financial growth

strategy

On June 24, Japan’s government called for over ¥370 trillion public-private growth investment in 17 strategic

areas by FY2040 . Investing in strategic areas is a key theme for enhancing Japan’s growth potential and

supporting the Japanese equity market. Putting aside the feasibility of the long-term target of over ¥370

trillion, we believe this investment could serve to increase Japan’s growth potential, corporate profit growth,

and valuations. The government did not present a specific order of priority for investment areas, but we

expect accelerated capital investment in the next few years in areas related to economic security and

infrastructure, including AI/semiconductors (physical AI), cybersecurity, materials, resource and energy

security, and disaster prevention and national resilience. Regarding fiscal health, the government expects

the ratio of government debt-to-GDP to continue declining through the mid-2030s (the second scenario),

due partly to economic growth amid inflation, and sees limited near-term risk of a rise in long-term interest

rates.