Fidelity Investment Management (Japan) takes an optimistic view of the Japanese stock market and expects the previous concentration in AI and semiconductor stocks to be corrected going forward. The company presented its outlook at a media seminar on 7 August.
Fidelity Investment Management (Japan) considers the Japanese stock market neither overvalued nor overheated, and expects movements in line with fundamentals to continue. Ojida Kenji (王子田 賢史) cited the current conditions as the basis for an optimistic outlook.
The shift from deflation to inflation and nominal GDP growth, as changes in the macroeconomic environment, is expected to boost corporate earnings and lead to higher share prices. If an environment in which CPI remains at around 2% year on year continues, companies will be more likely to pass higher costs on to customers, improving sales and profit margins.
Changes in corporate behavior were also cited as a factor behind the rise in share prices. Dividend increases and share buybacks have reached record highs, while a management focus on balance-sheet strength is expected to drive higher ROE and greater shareholder returns.
However, the concentration in AI and semiconductor stocks seen from April to June 2026 is expected to be corrected, potentially bringing a period of renewed interest in bank, real estate and trading company stocks. The fund's strategy focuses on high dividend yields and future dividend growth.