Against the backdrop of a possible pullback following the previous day's sharp gains, developments in semiconductor and AI-related stocks, the movement of Nikkei Average futures and the yen's trend, trading is expected to focus on buying on dips. Overseas investor activity is expected to remain limited, with attention on the resilience of individual stocks.
In light of market developments in Japan and the United States, the Nikkei Average on the 8th is expected to come under pressure from profit-taking following the previous day's sharp rise, with trading likely to focus on semiconductor and AI-related stocks. In the night session, Nikkei Average futures reached a high of ¥66,450 before falling as low as ¥65,860.
The yen has been trading in the lower ¥154-per-dollar range, and the market is expected to remain in a phase where it is difficult to find a catalyst for buying export-related stocks. Relative strength is expected in Nikkei Average-led trading, while interest in semiconductor and AI-related stocks is likely to increase.
Advantest, Kioxia Holdings, Tokyo Electron and SoftBank Group were among the stocks that rose the previous day and showed resilience. With overseas flows limited, retail investors may direct funds toward small- and mid-cap stocks. If the Nikkei Average falls below its 25-day moving average, futures-led selling could emerge, and buying on dips is expected to warrant attention.