JPMorgan says a stronger yen could ease JGB pressure and lift Tokyo AI, chip stocks

JPMorgan Securities’ Japan strategists said a stronger yen may help relieve upward pressure on Japanese government bond yields and, in turn, bring forward a recovery in Tokyo-listed artificial intelligence and semiconductor shares. In a report, strategists including Rie Nishihara also said the real estate sector, which has lagged recently, could benefit from the same shift. The bank also pointed to areas that may face headwinds from yen appreciation. Transportation, logistics, and automakers are among the sectors dealing with a negative impact on earnings as the currency strengthens. That leaves the market outlook uneven, with some domestic rate-sensitive groups potentially improving while exporters and other yen-sensitive industries come under pressure. JPMorgan’s view on potential gains in Tokyo AI and semiconductor names differs from Saxo Bank’s global equity stance on the sector. Saxo strategist Charu Chanana had said earlier that a rebound in the yen could trigger unwinding in some crowded and leveraged positions, according to the source report carried by Jin10.