J.P. Morgan International FTM 1 Jul 26: Schneider Electric; ASEAN High-Conviction Picks; Indonesia Equity Strategy; Horizon Robotics - H; Thai Hospitals; Midea Group - A; KPIT Technologies and More. Wed Jul 01 2026

研报英文原文证据摘录

J.P. Morgan International FTM 1 Jul 26: Schneider Electric; ASEAN High-Conviction Picks; Indonesia Equity Strategy; Horizon Robotics - H; Thai Hospitals; Midea Group - A; KPIT Technologies and More. Wed Jul 01 2026

North America Equity Research AC Global Equity Research

(1-212) 270-6000 01 July 2026 J P M O R G A N

morganwise@jpmorgan.com

Earnings-driven stock rally to continue: Investment strategy with rising interest rates vs AI growth

This report on the outlook for Japanese equities in 2H 2026 is a collaboration between our equity strategy and equity research

teams. We expect the uptrend in Japanese equities to continue in 2H and have raised our year-end targets to 4,400 for TOPIX

and 75,000 for the Nikkei 225. While the pace of share price gains in 1H was rapid, the rally was driven by earnings centered

on AI semiconductor names, and overheating in P/E multiples receded. The government's two growth strategies of growth

investments in strategic sectors and encouraging individuals to shift their assets into equities and government bonds are likely

to accelerate growth in corporate profits, increase personal disposable income, and stabilize the JGB market, helping to

mitigate the risks of rising interest rates and yen depreciation. Since 2025, the Japanese equity market has not experienced

sustained declines even after major shocks, and we believe that ongoing structural changes, such as corporate reforms and

capital flows, continue to provide significant upside potential over the medium term. In 2H, the key investment focus will be how

much of a headwind rising US interest rates pose to the AI supercycle (rising interest rates vs AI growth). The sustainability of

US Big Tech's AI investment will continue to be questioned.