Japan Strategy: Tech-led bull market continues, Nikkei225 at 90,000 in sight

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Japan Strategy: Tech-led bull market continues, Nikkei225 at 90,000 in sight

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22 Jun 2026 04:50:19 ET │ 10 pages

Japan Strategy

Tech-led bull market continues, Nikkei 225 at 90,000 in sight

CITI'S TAKE

Ryota Sakagami AC

Japanese equities have continued their upward trajectory since April, with +81-3-6776-4653

TOPIX recently breaking above 4,000 and the Nikkei 225 surpassing ryota.sakagami@citi.com

72,000. While TOPIX has been tracking roughly in line with our

expectations, the Nikkei has been delivering stronger-than-expected Keishi Ueda

performance, driven by technology stocks. Tech sector EPS forecasts are +81-3-6776-5110

also being revised upward at a rapid pace, and we judge the rally remains keishi.ueda@citi.com

within healthy bounds rather than reflecting speculative excess or bubble

conditions. We maintain our TOPIX target at 4,500 points while raising our

Nikkei 225 target to 90,000.

Tech-led bull market continues, Nikkei 225 at 90,000 in sight — Japanese

equities have continued their upward trajectory since April, with TOPIX recently

breaking above 4,000 and the Nikkei 225 surpassing 72,000. While we saw a

temporary correction in early June, driven by rising US long-term interest rates,

stocks resumed their strong uptrend following progress in Middle East peace

negotiations, the subsequent stabilization of US long-term rates, and the smooth

passage of the BoJ's June monetary policy meeting.

Citi has anyway had a bullish stance on Japanese equities, based on: 1) Japanese

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

improvements, 2) margin improvements driving higher RoE that supports valuation

reratings for Japanese stocks, and 3) abundant global liquidity creating favorable