In case you missed it, Japan Most Read Publications:7 Jul to13 Jul2026

Research evidence excerpt

In case you missed it, Japan Most Read Publications:7 Jul to13 Jul2026

Asia Pacific Equity Research

Japan Most Read 17 July 2026

In case you missed it, Japan Most Read Publications: 7 Jul to 13

Jul 2026

Japan Quant Strategy (Masanari Takada)

Real and imaginary aspects of seasonal reversals: If “this time is different,” then a Goldilocks-style

Momentum market lies ahead

1: Selling semiconductors and buying Value continues: In the Japanese stock market, the correction in Momentum stocks,

mostly of semiconductors and electronic components-related companies, that has been ongoing since last week continues. At

the same time, Value and Quality stocks, which had initially lagged, continue to see buying interest. Since these Momentum

stocks, which have been the market driver from early spring through June, have rapidly entered corrective territory, there has

been no major change in this composition so far.

Japan Equity Strategy (Rie Nishihara)

Transformative companies in the AI era: Searching for the next Recruit

Following a market rally driven by AI semiconductor stocks in April-June, investor interest broadened in early July from AI

stocks to IT services and domestic-demand stocks. Market volatility is widely expected to increase in 2H 2026, given that

expectations of higher US interest rates are being factored into gold futures prices, and that the debate about the sustainability

of the growth of hyperscalers’ AI investments rages on. The benefits of rising stock prices have thus far been concentrated in

the supply side of AI semiconductors, but with AI adoption increasing, we believe investment opportunities are growing among

AI-user companies, by which we mean corporations that leverage AI to redefine their business models and significantly

increase their earnings power.