In the first half of 2026, the Nikkei Average moved toward breaking above ¥70,000, with notable gains concentrated in semiconductor-related stocks. Investment themes for the second half are being organized based on changes in the makeup of the top-performing stocks and trends in individual stock contributions to the Nikkei.
Japan's equity market rose sharply in the first half of 2026, with the Nikkei Average reportedly up 41.5% from the end of 2025 as of June. The top gainers included KIOXIA Holdings, Taiyo Yuden, Furukawa Electric, Ibiden and Murata Manufacturing, led by semiconductor-related stocks. Meanwhile, the top decliners included AEON, Nexon, Sumitomo Pharma, Nintendo and Nomura Research Institute, spanning a wide range of industries including retail, services, pharmaceuticals and transportation-related businesses. Specific figures for percentage changes from the end of 2025 have been disclosed for many stocks.
Looking at individual stock contributions to the Nikkei Average, Advantest provided a substantial boost during the rise from ¥50,000 to ¥60,000, while negative contributions stood out relatively more during the move from ¥60,000 to ¥70,000. Since June, however, KIOXIA and other stocks have gained prominence, with semiconductor-related stocks such as TDK, Murata Manufacturing and Taiyo Yuden at the center of contributions. The analysis says that the expansion of the AI market has broadly changed investor stock preferences.
As future investment themes, diversification into areas outside semiconductor and AI-related stocks is also being considered. Bank stocks are expected to benefit from wider interest margins as interest rates rise, while the real estate sector may have scope for a re-rating amid expectations for higher rents at central Tokyo offices. For individual investors, incorporating growth stocks outside AI and semiconductors, as well as sectors that complement the economic cycle, is considered effective.