Japan equity market summary (June 2026)

Research evidence excerpt

Japan equity market summary (June 2026)

Global Markets Research

Japan equity market summary (June 2026) 3 July 2026

EQUITY: JAPAN STRATEGY

Research Analysts

Semiconductor and AI-related stocks continue to drive gains Macro strategy

Masaki Motomura - NSC

Expectations for an easing in Middle East tensions also lifted Japanese masaki.motomura@nomura.com

equities +81 3 6703 1119

Shin Nishioka - NSC

TOPIX rises 0.9%, up for a third consecutive month shin.nishioka@nomura.com

The TOPIX and Nikkei 225 both continued to rise in June 2026, hitting all-time highs in the +81 3 6703 3948

second half of the month. Semiconductor and AI-related stocks continued to make major

contributions to share price gains, and the Nikkei 225 substantially outperformed the

TOPIX, as it did in Apr–May. Share price gains were also supported by expectations that

tensions in the Middle East would ease. Average daily trading value on the TSE Prime

Market was up 10.0% m-m at ¥11.62trn in June.

The TOPIX and the Nikkei 225 rose 0.9% and 5.6% m-m, respectively, with a wide gap

between the two indices, as in Apr–May. The JPX-Nikkei Index 400 rose 0.8%,

underperforming the TOPIX. Size-based indices showed outperformance for mid-caps

(TOPIX Mid 400) and only modest rises for large caps (TOPIX 100) and small caps

(TOPIX Small). The TSE Growth 250 Index fell a sharp 13.7%.

In the first half of June, Japanese equities rose through to the middle of the month. They

were also weak at times because of the sharp decline in US semiconductor stocks and

the escalation of tensions in the Middle East. However, investor sentiment improved on

the prospect that the US and Iran would reach an agreement to end the conflict. Japanese

equities rebounded through the middle of the month, and semiconductor and AI-related