JPMorgan: Yen Strength to Ease JGB Pressure, AI and Semiconductor Sectors May Accelerate Recovery

Odaily News: Strategists at JPMorgan Securities Japan said that a stronger yen is expected to ease upward pressure on Japanese government bond yields, potentially accelerating the recovery of AI and semiconductor sectors listed in Tokyo. Strategists including Rie Nishihara wrote in a report that the real estate sector, which has recently underperformed, could also benefit. Some sectors are facing the negative impact of yen appreciation on earnings, such as transportation, logistics, and automotive industries. JPMorgan's view on the potential rise of Tokyo's AI and semiconductor sectors contrasts with Saxo Bank's global equity view on the sector. Saxo strategist Charu Chanana previously stated that a rebound in the yen could trigger the unwinding of some crowded and leveraged positions. (Jin Shi)