Daiwa Securities raised its year-end high forecast for the Nikkei 225 index to 70,000 yen on Monday [1].
This revision signals strong confidence in the Japanese equity market's momentum. By increasing the ceiling of its projections, Daiwa suggests that the current rally has significant room to expand despite global geopolitical volatility.
Chief strategist Tsuboi Yugo said it would not be surprising for stock prices to rise further in the Japanese market. He said that while the current pace of the increase is fast, the background supports further growth [1].
According to the firm, the new year-end high forecast of 70,000 yen [1] is an increase from the previous projection of 65,000 yen [1]. Additionally, Daiwa set its year-end target forecast at 67,000 yen [1].
Analysts at the firm attributed this bullish outlook to robust corporate earnings, and the continued influence of high-tech stocks [1]. These factors appear to be outweighing other market pressures, including lingering concerns regarding tensions in the Middle East [1].
Recent market data shows the Nikkei 225 has been testing new heights. On May 11, 2026, the index closed at 59,585 yen, marking a record high [4]. This upward trend continued through the following week, with the index closing at 59,518 yen on May 16 [6] and reaching 59,716 yen by May 22 [5].
Daiwa's updated targets place the potential growth well above these recent record closes, suggesting a target increase of several thousand yen by the end of the year [1].
“Daiwa Securities raised its year-end high forecast for the Nikkei 225 index to 70,000 yen”
The upward revision by a major brokerage like Daiwa Securities indicates a shift in sentiment where fundamental corporate growth and tech sector strength are now viewed as more influential than geopolitical risks. If the Nikkei 225 approaches the 70,000 yen mark, it would represent a significant expansion of Japan's market capitalization and a potential signal of long-term structural optimism in the Tokyo Stock Exchange.
