Strategists at JPMorgan Securities Japan Co. say a stronger yen could ease upward pressure on Japanese government bond yields, potentially accelerating a recovery for Tokyo-listed AI and semiconductor shares. In a note, strategists including Rie Nishihara wrote that real estate shares, which have also performed poorly recently, could similarly benefit from the dynamic. However, the report cautioned that some sectors face negative earnings impact from the rising yen, specifically highlighting transportation and logistics, and autos.

The analysis links currency movements directly to borrowing costs and equity performance in key technology sectors.