Yen Strength Fuels Hope for Japanese AI Recovery

Strategists at JPMorgan Securities Japan Co. believe that the strengthening yen could have a positive impact on the Japanese market, particularly for AI and semiconductor shares.

The stronger currency has put downward pressure on government bond yields in Japan, which may lead to a recovery for Tokyo-listed AI and semiconductor shares.

Rie Nishihara, a strategist at JPMorgan Securities Japan Co., noted that some sectors are exposed to negative earnings impact from the rising yen, such as transportation and logistics, and autos.