Nomura raises its target levels for the Tokyo Stock Exchange index and the Nikkei index, anticipating further growth in corporate earnings.

Nomura Securities has raised its year-end target for Japan's benchmark stock index, the Tokyo Stock Price Index, from 4,200 points to 4,400 points. The upward revision is attributed to increased product pricing, higher sales volumes, and a weaker yen, which have led institutions to raise their earnings per share forecasts for companies. Nomura's chief equity strategist, Tomoaki Kitaoka, stated in a research report on Monday: "We remain optimistic about the upward trend in the Japanese stock market, with earnings per share growth supported by multiple factors including product price increases and share buybacks." The expected year-on-year growth rate for earnings per share of the Tokyo Stock Price Index constituents for the fiscal year 2026 has been raised from 13.4% to 19.2%. Institutions estimate that about half of the recent improvement in corporate profit margins comes from temporary factors such as exchange rate effects and tariff refunds, while the other half is derived from price increases and sales growth, which are sustainable. With corporate buybacks, individual investors, and overseas capital fueling demand, the market supply and demand dynamics remain tight. The year-end target for the Nikkei 225 index has been raised from 68,000 points to 70,000 points.