Japan Most Read 06 November 2026: In case you missed it, Japan Most Read Publications: 27 Oct to 2 Nov 2026

October was a difficult month for Japan's equity market: TOPIX fell 3.5%, the Nikkei 225 by 5% and the Nikkei Semiconductor Index by 15%, though macro concerns that had risen in August and September receded. Funds rotated out of AI semiconductor names and overseas demand-driven cyclicals into domestic demand-driven defensives, high-dividend, low-volatility and quality stocks, leaving the market's 12-month forward P/E below 15x for the first time since the Takaichi administration took office, which JPM views as oversold. JPM remains bullish on AI growth and expects Japanese equities to recover as sentiment normalizes, with the shift of household assets from cash and deposits into financial products acting as a medium-term structural support. In machinery, coverage was initiated on seven FA companies, preferring Daifuku, THK, CKD and KEYENCE in that order and staying Neutral on SMC, FANUC and Yaskawa Electric, with Daifuku the top pick on its balance of growth and stability. KIOXIA's 2Q