According to institutional analysis, the Japanese stock market is expected to continue to rise in 2026 as Japanese Prime Minister Sanae Takaichi introduced an aggressive fiscal plan based on the momentum of the past year. Japan's TSE index has withstood the impact of tariffs, two interest rate hikes by the Bank of Japan, and a change of Japanese prime minister. It has risen about 23% this year, and is expected to be the biggest increase compared to the S&P 500 index since 2022. The strategists said that this round of upward movement has laid the foundation for a further increase. Previously, Japan's benchmark stock index had repeatedly reached new highs. Construction, infrastructure, and energy stocks are expected to perform well next year as the Takaichi city government promised trillions of yen in domestic financing. As the focus of technology shifts to physical artificial intelligence, robot manufacturers may also win. Bank stocks have become one of the best performing stocks this year due to rising interest rates, and bank stocks are expected to continue to rise.

According to institutional analysis, the Japanese stock market is expected to continue to rise in 2026 as Japanese Prime Minister Sanae Takaichi introduced an aggressive fiscal plan based on the momentum of the past year. Japan's TSE index has withstood the impact of tariffs, two interest rate hikes by the Bank of Japan, and a change of Japanese prime minister. It has risen about 23% this year, and is expected to be the biggest increase compared to the S&P 500 index since 2022. The strategists said that this round of upward movement has laid the foundation for a further increase. Previously, Japan's benchmark stock index had repeatedly reached new highs. Construction, infrastructure, and energy stocks are expected to perform well next year as the Takaichi city government promised trillions of yen in domestic financing. As the focus of technology shifts to physical artificial intelligence, robot manufacturers may also win. Bank stocks have become one of the best performing stocks this year due to rising interest rates, and bank stocks are expected to continue to rise.