The Nikkei 225 has risen approximately 44% in less than six months, briefly surpassing ¥72,000. In light of the favorable earnings outlook for Japanese companies, some analysts believe current levels can be explained by fundamentals.
The Nikkei 225 has risen sharply, briefly breaking above ¥72,000 in late June. It has gained approximately ¥22,000, or around 44%, in roughly six months from about ¥50,000 at the end of 2025.
The concentration of funds in AI- and semiconductor-related stocks has become a focus of the market, with some analysts saying it is a natural phenomenon reflecting changes in the industrial structure. While share prices of major U.S. technology companies have also continued to rise, views remain divided on whether the market as a whole is distorted.
Japanese companies are expected to post double-digit profit growth for 2 consecutive years, in FY2026 and FY2027. Based on this outlook, some analysts say levels of approximately ¥72,000 could be fundamentally justified.
At the same time, investors are advised to be alert to a short-term sharp decline in share prices because high expectations for future earnings have already been priced in. Analysts say a correction could present a valuable buying opportunity for long-term investors.