Japan Exchange Group, Inc.

Japan Exchange Group on the 28th revised upward its consolidated net profit forecast for the fiscal year ending March 2027 to 98.5 billion yen. The outlook shifted from an initial 2.1 percent decline to a 24.5 percent increase, as the company raised its assumed daily average stock trading value by 2.7 trillion yen to 10.2 trillion yen, and revised TOPIX futures trading up by 1,000 units to 87,000 units. The annual dividend forecast was also raised from 61 yen to 77 yen per share, with the interim dividend increased from 30 yen to 38 yen and the year-end dividend from 31 yen to 39 yen.

AIRA Group and the Tokyo Stock Exchange successfully held a special seminar titled Decode Japan's Investment Landscape, offering perspectives on the direction of Japan's stock market amid the AI and semiconductor trends driving the global economy. The event drew a strong turnout of high-net-worth investors and interested participants. Mr. Masanori Yoshida from Japan Exchange Group shared updates on governance reforms reflected in rising dividends, share buybacks, and increasing mergers and acquisitions. Meanwhile, Mr. Naohide Une from Investment Lab noted that Japan's stock market has delivered an average annual return of 13.4% over the past 15 years, and presented a three-group AI investment framework: direct semiconductor plays, actual AI users, and beneficiaries of AI-driven labor replacement. He emphasized that opportunities extend beyond blue-chip stocks to mid- and small-cap companies involved in data centers and automation. Mr. Hirofumi Hayashi from Sumi Trust added that global active funds remain significantly underweight Japan, implying future buying potential, and cited Warren Buffett's gradual increase in Japanese trading company holdings as evidence of improved cash flow quality and governance. All three panelists agreed that the market's rise is supported by structural governance reforms and sustained corporate profit growth. Many large listed Japanese companies have expanded their revenue bases internationally, benefiting from global economic growth, a weaker yen, and the semiconductor investment cycle, as reflected in improving earnings per share and return on equity. While Japan may lack leaders in graphic chip design or cutting-edge foundries, it remains strong in chipmaking machinery and equipment, industrial materials, infrastructure equipment testing, and physical automation. Mr. Pairoj Luengthalerngpong, Chief Executive Officer of AIRA Securities Public Company Limited, said that combining perspectives from a market regulator, the private sector, and a global financial institution gives Thai investors comprehensive, in-depth insights for crafting investment strategies in Japan's capital market. He summarized three key takeaways for Thai investors: Japan's stock market continues to grow steadily on strong earnings; a gradual accumulation strategy should be used to mitigate timing risk; and focus should be on earnings fundamentals and governance rather than trading on daily news flow, especially as index returns become concentrated in a handful of AI and semiconductor stocks. This collaboration between AIRA Group and the Tokyo Stock Exchange underscores a commitment to promoting investment knowledge and expanding access for Thai investors to information and opportunities in leading Japanese companies.

A bill to amend the Financial Instruments and Exchange Act and the Payment Services Act, which for the first time classifies crypto assets as financial products, was passed and enacted at the upper house plenary session on the 15th. Under the amendment, the name of crypto asset exchange service providers will be changed to crypto asset trading service providers, and the maximum prison sentence for unregistered sales will be raised to up to 10 years, with fines of up to 10 million yen. Insider trading regulations will also be introduced for the first time in the virtual currency sector, prohibiting trading based on undisclosed information. On the tax front, the bill includes a shift from the current comprehensive taxation to separate self-assessment taxation at a rate of around 20 percent, along with a three-year loss carryforward deduction, with enforcement scheduled for fiscal 2027. Furthermore, an institutional framework will be established to enable the creation of crypto asset ETFs, and Japan Exchange Group is eyeing a listing around 2027.