JAPAN FIRST TO MARKET

Research evidence excerpt

JAPAN FIRST TO MARKET

Asia Pacific Equity Research

Due to market closures, there will be no publication of Japan First to Market on 20 July. Publication resumes

on 21 July.

Japan First to Market 17 July 2026

Top Stories

Japan Quant Strategy (Masanari Takada)

“AI bubble” narrative cyclically fading – Momentum recovery timeline being pushed back, but is it

just a matter of timing?

Volatile price movements in AI-related stocks continue to weigh on the upward momentum of Japanese stocks. Today (July 16),

the Nikkei Average retreated to the 66,600 level, as profit-taking pressure from the cash equity side acted as a headwind. The

weakness in Japanese semiconductor-related stocks was particularly apparent during Asian trading hours, as they continued

to show a strong correlation with South Korean stocks.

Zabka and Seven & i (Elena Jouronova, CFA/Dairo Murata)

We see potential acquisition of an equity stake in Zabka by Seven & i as a win-win if confirmed.

According to Japanese Nikkei, Seven & i (N, covered by Dairo Murata) has reportedly entered the final phase of negotiations to

acquire an equity stake in Zabka (N, covered by Elena Jouronova). Press reports suggest the talks contemplate the purchase

of “several dozen percent” of the shares, with the investment potentially reaching “several hundred billion yen” in value. In the

absence of any official confirmation or additional details at this stage, we highlight the following considerations.

Electronic Components Sector (Akinori Kanemoto)

Component Data Deposition: METI production statistics (electronic components, semiconductors)

for May 2026: ABF substrates remain strong

METI released May 2026 production statistics on July 14. Domestic production value (in USD terms) for both electronic