Is the international competitiveness of Japan rebounding as share prices rise?

Research evidence excerpt

Is the international competitiveness of Japan rebounding as share prices rise?

Global Markets Research

Japan equity weekly (25 June 2026) 25 June 2026

EQUITY: JAPAN STRATEGY

Is the international competitiveness of Japan Research Analysts

rebounding as share prices rise? Macro strategy Tomochika Kitaoka - NSC

tomochika.kitaoka@nomura.comIMD World Competitiveness Ranking, growth strategy

roadmap, PM Takaichi’s visit to India +81 3 6703 1815

Masaki Motomura - NSC

Nikkei 225 gains take a breather: EPS and P/E levels warrant attention masaki.motomura@nomura.com

We set out our main scenario for Japanese equity markets of the TOPIX at 4,200 and the +81 3 6703 1119

Nikkei 225 at 68,000 at end-2026 (with an upside scenario of 4,900 and 78,000) in our 19 Naoya Fuji - NSC

June 2026 report Japaneseequitiesinvestmentstrategy(June), but some investors have naoya.fuji@nomura.com

said that this looks too bearish given estimates of 80,000 or 90,000 at other houses. The +81 3 6703 1245

comment by SoftBank Group [9984] CEO Masayoshi Son on 24 June that the company is Momoko Nakada - NSC

aiming for net assets of ¥1,000trn is a testament to bullishness towards AI, and the results momoko.nakada@nomura.com

by Micron Technology released on 24 June will probably also lend support to this +81 3 6703 1100

optimism. That said, market participants seem surprisingly unaware about EPS and P/E Tomoharu Kurosu - NSC

related considerations when it comes to the Nikkei 225, including that the P/E of around tomoharu.kurosu@nomura.com

27–28x on a weight-adjusted basis looks a little high (see our 23 June 2026 report Japan +81 3 6703 3875

equitymemo:HowtoreadNikkei225EPSandP/Eratio). Japan quantitative research