[Looking back on the first half of 2024] The list of the strongest Japanese stocks has been revealed! AI, rising interest rates, inbound, etc. are investment themes

After hitting a record high, $Nikkei 225.JP$It has remained flat for quite some time, and it has been hovering between 37,000 and 40,000 yen for the past 2 months.

Bank of Japan on 14thA specific plan to reduce government bond purchases was postponed to a decision meeting at the end of JulyAs a result, depreciation is expected until the next meeting, and the Nikkei Stock AverageBe wary of approaching the lower limit of the box price (37,000 to 9,000 yen)It is said that this is likely to be a move. The market assumes a heavy rise due to a tug-of-war between expectations for the return of financial exchange rates, which presupposes a downturn in interest rates between the US and Europe, and concerns about economic deceleration.

According to the Bank of America survey in May, even if Japanese stocks hit an all-time high, most fund managers believe that Japanese stocks have not yet reached their peak.The first half of 24 was a run-up period for Japanese stocks to hit record highsIt is also said that it will become.

Japan Stock “Explosion” Ranking: Generative AI, Inbound, and Interest Rate Rises

Since the beginning of the year, major sporting goods companies $ASICS.JP$ButA sharp rise of 119.06%Then, it came in first place. What is the stock price of a company known for its running shoesIn terms of total return, it has increased 4 times in the past 2 years. Also, sales for the fiscal year ending 2024/1-3 (1st quarter) increased 14% from the same period last year,Operating profit increased 53% from the same period, and business performance was also strongthat's it. It was also revealed that a stock split will be carried out for the first time since listing, and favorable purchases have continued.

① Related stocks are high across the board due to the generative AI boom
American semiconductor $NVDA.US$The generative AI boom, which is symbolized by good financial results, is blowing tailwind into Japanese stocks.
・ $Mitsubishi Heavy Industries.JP$Since the beginning of the year,99% surgeI did it. Shortage of electricity has become an investment theme due to the expansion of data center investment. Energy businesses such as Mitsubishi Heavy Industries' nuclear power generation systems and gas turbines are attracting attention. Furthermore, since the Japanese government also expanded its defense-related budget in fiscal year 27, the company, which has strengths in the defense business, is popular.
・The world's top cutting, grinding, and polishing equipment for semiconductors and electronic components $Disco.JP$and a major semiconductor manufacturing equipment company $Kokusai Electric.JP$IsBoth surged 77.56% and 53.58%。
・ $Hitachi.JP$has risen 67.55%. Domestic and international digital demand became a tailwind, and the company'sSocial infrastructure businesses such as power transmission and distribution grids and railways also remained steadyIt is expected to do so.
・ $SoftBank Group.JP$showed an increase of 62.24%. Major British semiconductor design company under its umbrella $ARM.US$Stocks have followed an upward trend, and purchases are continuing in anticipation of growth for generative AI. The fall in long-term interest rates in Japan and the US was also a tailwind.
・ $NEC.JP$has risen 52.75%. Digital transformation (DX) investment by domestic companies and government offices increased, and operating profit for the third quarter increased 22.3% compared to the same period last year due to an increase in IT system orders, etc.

② Inbound-related stocks are in the spotlight due to a rapid recovery in the number of foreign visitors to Japan
・ $Isetan Mitsukoshi Holdings.JP$Butsurged 86.67%I did it. The financial results for the fiscal year ending 2024/3 were well received. Due to strong inbound demand, sales at the Isetan Shinjuku Main Store etc. reached a record high.

③ Insurance stocks are expected to improve operations due to rising domestic interest rates
・ $MS&AD Insurance Group Holdings.JP$ButAn increase of 68.27%. Our company is one of the 3 mega non-life insurance companies, and favorable financial results, stock splits, and share buybacks were good news.
・ $Tokio Marine Holdings.JP$But55.14% increase. In addition to insurance-related earnings growing at domestic and overseas business companies, profits from the sale of policy holdings will also boost profits. Dividend increases and share buybacks were also announced, and the purchase was well received

Japan large stock growth rate ranking: pay attention to “quality stocks” and bank stocks

① Funds flowed into “quality stocks,” and Mr. Buffett's “overwhelming persuasiveness” in investing in Japanese trading company stocks
Quality stocks that combine high ROE, low financial leverage, and high competitiveness are popular with overseas investorsI'm collecting. It is easy for quality stocks to be preferred due to the downward trend in long-term US interest rates and uncertainty about the future of European politics. It is said to be a representative quality brand $Recruit Holdings.JP$ButIt rose 38%, supported by strong financial resultsIt was. Buffett's favorite trading company stock $Mitsui.JP$、 $Mitsubishi.JP$Isup 40.22% and 35.52%, respectivelyI did it.

② Bank stocks are also popular
$Sumitomo Mitsui Financial Group.JP$Is 47.17%、 $Mitsubishi UFJ Financial Group.JP$increased by 27.69%, respectivelyI showed it。Both companies are doing wellIt was. Domestic commercial banking operations have been severely damaged by the Bank of Japan's yield curve control (YCC) policy, which fixes long-term interest rates to around zero for many years,The Bank of Japan abolished the YCC policy in March this year as a tailwindIt has become.

Of medical stocks $Daiichi Sankyo.JP$But41.12% increase. The reason was that securities companies raised target stock prices due to growth expectations for the main anticancer drugs. The expected PER was 58 times higher, there was no sense that it was expensive compared to the same industry, and there were also voices pointing out room for an increase in price.

Generative AI boomNew demand for semiconductors was born, $Tokyo Electron.JP$But38.15% increase. Expectations are growing for semiconductor manufacturers to increase capital investment for 2025.

Source: Moomoo, Nihon Keizai Shimbun, MINKABU, Dow Jones
ー MooMoo News Evelyn
This article uses automatic translation for some of its parts