JAPAN WEEKLY KICKSTART TOPIX closes above 4000, and NKY above 70000 for the first time; re-focus on the cross-shareholding thematic

Research evidence excerpt

JAPAN WEEKLY KICKSTART TOPIX closes above 4000, and NKY above 70000 for the first time; re-focus on the cross-shareholding thematic

Portfolio Strategy Research

19 June 2026 | 7:50PM JST

JAPAN WEEKLY KICKSTART

TOPIX closes above 4000, and NKY above 70000 for the first time;

re-focus on the cross-shareholding thematic

Summary of the week Bruce Kirk, CFA +81(3)4587-9950 | bruce.kirk@gs.com

TOPIX: 4,044.96 (4.2%) / NK225: 71,250.06 (7.9%) Goldman Sachs Japan Co., Ltd.

Julius Chan

n Top sectors: Non-Ferrous Metals, Electrical Machinery +81(3)4587-1789 | julius.chan@gs.com Goldman Sachs Japan Co., Ltd.

n Bottom sectors: Marine Transport, Fisheries

In this week’s Japan Weekly Kickstart we focus on the performance of our 2

Corporate Governance-related implementation ideas initially discussed in Japan

Portfolio Strategy: Finding multiple ways to win again: CY2026 1H corporate

governance playbook (13 February 2026): 1) the Low AGM approval rating screen;

and 2) the Cross shareholding screen. An equal-weighted index based on our Low

AGM approval rating screen was outperforming TOPIX by as much as 13ppts from

July 2025 to the end of February 2026 (Exhibit 1). However, this out-performance

moderated considerably in March as geopolitical concerns increased, and this

thematic has not really participated in the AI-led boom since early April. The current

out-performance has now narrowed to around 6ppts. In contrast, the Cross

shareholding screen-based index has out-performed TOPIX by over 40ppts July

2025 - June 2026 (Exhibit 2). We believe that the cross shareholdings focus in the

new Corporate Governance code draft is leading to increased positioning in cross

shareholding-related names going into this year’s AGM season (LINK).