JPMorgan Chase: AI growth expectations accelerating, Nikkei Index gains expected to exceed expectations.

The global market strategy team at J.P. Morgan stated in a report that due to the expected acceleration in the growth of the AI sector, the Nikkei index's increase may exceed expectations. The team estimates that as of the end of March, the weight of AI-related stocks in the Nikkei and TOPIX indexes has increased to 45% and 27% respectively. J.P. Morgan has raised its target for the Nikkei index by the end of 2026 from 61,000 points to 70,000 points, and the target for the TOPIX index from 4,100 points to 4,300 points. This upward revision also reflects factors including J.P. Morgan's outlook for the depreciation of the Japanese yen and the increase in oil prices due to the conflict in the Middle East. The Nikkei and TOPIX indexes most recently closed at 59,585.86 and 3,744.99 points respectively.