Japanese equities factor geek

Research evidence excerpt

Japanese equities factor geek

Global Markets Research

29 June 2026Japanese equities factor geek

EQUITY: EQUITY QUANTITATIVE RESEARCH

Research Analysts

Fresh momentum Japan quantitative research

Shunta Tachinaka, CFA - NSC

New momentum lineup doing well recently with preference for laggard AI- shunta.tachinaka@nomura.com

related stocks +81 3 6703 1212

Makoto Furukawa - NSC

Preference for laggard AI-related stocks has stood out of late makoto.furukawa@nomura.com

The momentum-driven market since April 2026 has been largely driven by AI +81 3 6703 1174

semiconductor stocks. Among recent momentum stocks, many of them are related to AI Shin Nishioka - NSC

semiconductors (Figure3). We also get the strong impression that investors have shin.nishioka@nomura.com

recently shown a preference for laggard AI-related stocks from among the AI +81 3 6703 3948

semiconductor-related stocks. In this report, therefore, we look at the performance of

regular momentum (medium-term momentum) and fresh momentum (medium-term

momentum and long-term reversal) stocks to assess the preference for laggards among

AI semiconductor-related stocks.

Fresh momentum has been stronger than momentum since April 2026

In this report, we define regular momentum as medium-term momentum stocks, ie, those

that are in the top 20% in terms of 12-month share price return, and fresh momentum as

medium-term momentum stocks that are also long-term reversal stocks, ie, those that are

in the top 20% in terms of 12-month share price return and also in the bottom 20% in

terms of 36-month share price return excluding 12-months.

Over the long term, fresh momentum has performed better than regular momentum. This

is because fresh momentum tends to benefit from medium-term momentum effects and