Citi: Japan High-Tech Overheating Low, Nikkei 60k

Japanese equities surged in April, with the Nikkei 225 surpassing 60,000 and reaching year‑to‑date highs.
The rally was driven by AI and semiconductor stocks, pushing the Nikkei/TOPIX ratio to a record 16.2.
Citi argues high‑tech valuations remain reasonable, citing global semiconductor sales, MSCI Japan IT earnings revision above market, and low P/E‑growth vs TOPIX.
Citi expects rebalancing toward construction, real estate, finance, defense and energy if Middle East tensions ease, rather than a sharp correction.