Japan Equity Strategy Market Explorer: Japanese equities continue to rise, 90,000 in prospect for the Nikkei

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Japan Equity Strategy Market Explorer: Japanese equities continue to rise, 90,000 in prospect for the Nikkei

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01 Jul 2026 02:35:22 ET │ 22 pages

Japan Equity Strategy Market

Explorer

Japanese equities continue to rise, 90,000 in prospect for the Nikkei

Ryota Sakagami AC

CITI'S TAKE +81-3-6776-4653

ryota.sakagami@citi.com

Japanese equities continued their uptrend over the past month, with TOPIX

breaking above 4,000 and the Nikkei 225 surpassing 72,000. Our bullish Keishi Ueda

view on Japanese equities remains unchanged, supported by margin +81-3-6776-5110

improvement through price pass-throughs, rising RoE, and abundant keishi.ueda@citi.com

global liquidity. The BoJ’s June meeting produced an ideal outcome by

maintaining accommodative monetary conditions while suppressing sharp <Sector Analyst>

fluctuations in FX and long-term interest rates. Assuming the tech-led bull Arifumi Yoshida

market continues, we maintain our TOPIX target at 4,500 and raise our

Nikkei 225 target to 90,000. Yuta Nishiyama

Takayuki Naito

Japan equities continue to trend higher — Japanese equities continued their

uptrend over the past month, with TOPIX recently breaking above 4,000 and the Takero Fujiwara

Nikkei 225 surpassing 72,000. While stocks saw a temporary correction in early June

driven by rising US long-term interest rates, they resumed a strong uptrend following Masahiro Shibano

progress in Middle East peace negotiations, the subsequent stabilization of US

Hiroki Watanabelong-term rates, and the smooth passage of the BoJ’s June monetary policy meeting.

We have maintained a bullish stance on Japanese equities, based on: 1) Japanese Tokiya Baba

companies’ smooth price pass-throughs leading to strong earnings and margin