JP Morgan Chase recommends buying Japanese stocks and expects a rapid recovery.

J.P. Morgan Securities Japan recommends buying Japanese stocks on dips, pointing out that the Japanese stock market has fallen to oversold levels due to the impact of the Iran conflict. Strategists such as Rie Nishihara stated in a report that a 10%-20% increase in WTI oil prices would only reduce corporate profits by 1%-2%, "given that companies have been increasingly able to pass on costs to product prices since 2023." Considering the limited impact of rising oil prices on profits and valuations, the firm believes that the Japanese stock market is approaching oversold territory. It is expected that the Nikkei 225 index will "rapidly" rebound to 54,000-56,000 points.