Nomura Asset Management struck a cautiously optimistic tone on Japan’s stock market for the rest of 2025, telling reporters in London that attractive valuations support its outlook into 2026. The firm pointed to ongoing corporate governance reforms as a key driver of long-term opportunity, adding that further improvements remain possible.

Executives also welcomed last month’s U.S.–Japan trade framework that capped tariffs at 15%, noting the deal eased uncertainty and lifted sentiment, particularly among domestic companies. Nomura said it remains underweight in autos but overweight in the IT sector.

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Underweight autos, overweight IT reflects a view that technology remains Japan’s stronger growth story.