Amid concerns over excessive AI investment in the United States, Ryoji Musha (武者陵司) points to the possibility of the Nikkei 225 reaching ¥100,000 in 2027. USD/JPY is expected to stabilize in the ¥150–¥160 range.
While AI investment continues in the United States, there are also concerns about rising funding costs. However, Ryoji Musha (武者陵司) of Musha Research believes that it is not yet time to worry about an AI bubble bursting, a development that is also expected to affect the Japanese stock market. The view that the Nikkei 225 rose into the ¥70,000 range in 2026 is presented, along with the possibility that Japanese equities could target ¥100,000 in the future.
On the assumption that the Nikkei 225 has reached the ¥70,000 range, Ryoji Musha (武者陵司) cited the possibility of its reaching ¥100,000 during 2027 and maintained a bullish stance that it would exceed that level within 2–3 years even if the move is delayed. He identified 3 factors: an increase in potential growth driven by proactive fiscal policy, the undervaluation of equities, and a shift in funds from deposits to equities alongside increased share buybacks.
Long-term interest rates are being closely watched as a risk to the US economy. One analysis also suggests that productivity gains and weaker employment growth resulting from the spread of AI could ease upward pressure on wages and prices. The view is that there is limited room for long-term interest rates to rise and that, taking into account the correlation between interest rates and stock prices, US equities could remain on an upward trend.
In the foreign exchange market, ¥160 to the dollar is viewed as a ceiling for yen weakness, with USD/JPY considered likely to stabilize in the ¥150–¥160 range. The rationale is the narrowing interest-rate differential between Japan and the United States and the yen's undervaluation. Periods of increased upward pressure on the yen are also anticipated, depending on overseas fund flows and the GPIF's asset allocation.