Semiconductor stocks are attracting attention as investors look for a technical rebound, with buying on dips expected after the open. Against the backdrop of a rebound in the U.S. SOX Index, Advantest, Kioxia HD, SoftBank Group, Tokyo Electron and others are expected to lift the market in some phases.
The Japanese market is expected to focus on buying on dips while assessing whether semiconductor stocks have bottomed. In the U.S. market, the SOX Index rebounded for the first time in 9 sessions, with Micron Technology and SanDisk among the stocks bought. Against this backdrop, semiconductor and AI-related large-cap stocks are seen as likely to attract buying aimed at a technical rebound.
The Nikkei 225's -1σ level is around ¥64,230, and a technical rebound targeting the 25-day moving average is likely to attract attention. On the other hand, if semiconductor stocks make only a weak recovery, investors will need to remain alert to short-term selling, while domestic-demand and defensive stocks may see profit-taking related to U.S. market developments.
Specifically, Advantest, Kioxia HD, SoftBank Group and Tokyo Electron have a significant impact on the index, and the market may shift to a wait-and-see stance for a pullback after the open.
Across the market, attention is also required on the movement of Chicago Nikkei 225 futures and yen levels. The market may be somewhat sell-led at the opening, but the bias may strengthen toward buying after the U.S. market opens.