As we approach the year end, we are taking a look at a clutch of potential Asian high performers which we rate for 2026. As ever, we are providing two names for free and the rest are being made available to our Armchair Trader Plus subscribers. I am including each stock’s YTD share price performance for reference.
#1. Mitsubishi Electric [TYO:6503] +72%
Mitsubishi Electric Corporation is emerging from FY2025 with solid momentum, driven by a sharply improved cost structure and a pivot into high-margin infrastructure and automation projects. In Q1 2026 its projected operating profit has jumped nearly 191%, aided by AI-driven efficiencies, supply-chain optimisation, and higher margins in critical sectors such as power transmission, data-centre cooling and smart-grid infrastructure.
The company has committed to a global expansion plan, including US grid upgrades and automation plant investments, that aligns neatly with rising global demand for decarbonisation and industrial digitisation. As supply-chain resilience and energy transition pressures intensify, we reckon Mitsubishi Electric’s blend of legacy capabilities and forward-looking infrastructure exposure should make it one of the more resilient Japanese industrial names to hold as 2026 unfolds.
#2. AEON Co [TYO:8267] +103%
AEON Co. has delivered record-high revenues and a strong rebound in profitability during the first half of fiscal year 2025, thanks in part to disciplined cost cuts, store-level digital reforms, and expanding its own private-label brand, ‘TOPVALU.’ Its streamlined supermarkets and general-merchandise stores are starting to reap the benefits of improved labour efficiency (e.g. wider adoption of self-checkout) and improved footprint management.
As Japanese consumers become more cost-conscious in a challenging macro environment, we think Aeon’s ability to offer lower-cost private-label goods while cutting internal expenses should give it an edge. Investing in digital transformations and optimising its store network both underpin a resilient retail business, one well-placed to withstand volatility and benefit from stabilising consumption in 2026.
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AloJapan.com