An article explaining the performance of Japanese stocks after the AI rally indicates that the AI and semiconductor sectors are expected to remain in focus as key drivers.
The Japanese stock market became overwhelmingly concentrated in AI during this year's April-June period, followed by a sharp pullback and then a rebound in August. Despite day-to-day volatility, TOPIX, an indicator of overall market performance, has maintained its upward trend and reached new highs.
The longer-term outlook toward the end of 2026 and 2027 is viewed positively, with structural changes such as the shift toward inflation, corporate governance reform and the growing presence of domestic investors seen as medium- to long-term drivers of gains in Japanese stocks.
At present, however, further improvement in companies' earnings outlooks is seen as a factor that could provide additional support. The AI and semiconductor sectors are expected to remain in focus as key drivers.