The Tokyo market rose on 14 August, led by AI and semiconductor-related stocks. The Nikkei 225 closed at ¥68,713.80, up ¥405.21 from the previous day. The index is expected to trade within a ¥67,500–¥70,500 range next week, with concerns that the completion of April–June earnings announcements will leave the market short of catalysts.
From 13 to 14 August, US markets rose as growth in the July Producer Price Index came in below market expectations, easing concerns over FOMC rate hikes, while lower oil prices also provided support. The Dow and Nasdaq advanced, and the S&P 500 set a new record high. Against this backdrop, buying in the Tokyo market was led by AI and semiconductor-related stocks.
In the Tokyo stock market on 14 August, the Nikkei 225 rose sharply from the previous day at one point and closed at ¥68,713.80, up ¥405.21. The TOPIX rose for an eighth consecutive session and reached a record high for the fourth straight day.
The market may be prone to profit-taking next week, and buying catalysts are expected to become scarce as companies finish announcing their April–June quarterly results. However, some analysts believe the underlying upward trend will continue even after a short-term correction, with the Nikkei 225 expected to consolidate in the ¥68,000 range and target ¥70,000.
The expected trading range is ¥67,500–¥70,500, while over the longer term, the market is expected to aim for a recovery of the Nikkei 225’s previous record high.