The Nikkei Average extended its decline under the influence of losses in U.S. technology stocks. Today's focus is on the performance of stocks in the spotlight, including Disco, Aeon and Bronco Billy.
The Nikkei Stock Average extended its decline in response to market turmoil in the United States, falling into the ¥61,400 range in morning trading before beginning to pare its losses on buying in domestic-demand-related stocks. In U.S. markets on 22 October, the Dow edged higher for a second day, while the Nasdaq fell sharply as selling spread across technology stocks. With meetings to decide monetary policy and corporate earnings announcements scheduled for next week, uncertainty remained over the market outlook during this week's trading.
Among today's stocks in focus, Disco was reported to be poised to set a new high on supply-demand factors following its earnings announcement, while Aeon attracted buying on fund inflows into retail stocks and expectations that the stronger yen would reduce import costs. Bronco Billy set a record high since listing, with operating profit for the third quarter of the fiscal year ending December 2026 expected to increase substantially year on year. These movements were cited as market factors, and together with trends in other stocks, the relative strength of domestic-demand-related stocks stood out.
Looking ahead, developments surrounding monetary policy meetings in Japan and the United States and the schedule for the release of domestic corporate earnings could influence the market. Disco is expected to leave its earnings outlook unchanged against a backdrop of solid demand, although attention is needed to potential sources of volatility in technology stocks. Aeon's share price is expected to move in line with trends in domestic demand, while the effects of promotional initiatives and cost improvements are expected to be the focus of Bronco Billy's earnings.