Toyota’s position at the top of Japan’s market-capitalization rankings is under threat, while AI and semiconductor stocks are emerging and bank stocks are making a comeback. This article lays out the overall picture of the changes signaled by the market.
Japan’s market-capitalization rankings have recently been marked by sharp gains in AI-related and semiconductor stocks, creating a situation in which Toyota Motor’s position at the top has changed. In particular, the rise in SoftBank Group’s share price has driven a substantial increase in its market capitalization, setting up a contest with Toyota for the top spot.
The resurgence of bank stocks is another major feature. As of 2 August, Mitsubishi UFJ Financial Group ranked 1st by market capitalization, Mizuho ranked 11th and SMFG ranked 4th, with higher interest rates improving lending spreads and boosting valuations.
Compared with around 2000, when NTT-affiliated companies and financial stocks occupied the top positions, AI- and semiconductor-related companies now have a much stronger presence among the leaders, while telecommunications companies have fallen in the rankings.
The current changes in the rankings show that market expectations for AI and semiconductors are being reflected in share prices. However, it remains uncertain whether future growth will materialize, and a structural shift does not automatically translate into economic growth.