Following the Nikkei Stock Average’s break above ¥70,000, its short-term upside potential is assessed from 3 perspectives. The focus is on earnings revisions for AI- and semiconductor-related companies, bottom-up target prices, and investment trusts’ portfolio trends.
The Nikkei Stock Average closed above the ¥70,000 level on 18 June 2026. Ikeda Yunosuke (池田雄之輔), head of the Market Strategy Research Department at Nomura Securities, explains from 3 perspectives how far the current level has reached and whether further upside remains.
Point 1 is the substantial upward revision to fiscal 2026 earnings forecasts for AI- and semiconductor-related companies. Total ordinary profit has been revised upward from ¥5.9 trillion at the start of the year to ¥12.8 trillion, suggesting that the rise is grounded in solid fundamentals.
Point 2 highlights the Nikkei Stock Average’s bottom-up target price of ¥73,089. This has served as a benchmark for assessing potential upside, indicating that further gains remain possible.
Point 3 shows that the median beta of Japanese equity investment trusts is 1.09, suggesting that investment trends may shift toward a greater balance between risk-taking and defensiveness. With beta of around 1.10 seen as a turning point, a shift away from an exclusively aggressive stance is expected.