This week, funds from domestic institutional investors were seen moving into AI-related stocks, while theme-stock buying is expected to continue as investors assess long-term interest-rate trends.
Fisco, an investment information provider, reviews movements in the stock market from 28 September to 2 October and provides its market outlook for 5 to 9 October. The Nikkei Average rose sharply from the end of the previous week, led by buying of AI-related stocks.
The Nikkei Average closed last week at ¥68,309.46, up ¥1,945.26 from the end of the previous week. Buying led the market at the start of the week on gains in US semiconductor stocks, although there was also caution over signs of overheating. In the latter half of the week, activity in risk assets intensified against a backdrop of gains in US semiconductor stocks and higher oil prices.
Portfolio repositioning by institutional investors appears to have progressed against a backdrop of gains in AI- and semiconductor-related stocks. Better-than-expected results from Micron Technology supported gains across semiconductor stocks, while rising long-term interest rates remained a source of concern.
Although the September Tokyo core CPI showed an increase, concern over price trends remains. As discussions continue over the convening of an extraordinary session of the Diet and fiscal expansion by the government, AI-related stocks are expected to remain in focus as a theme, despite some comments that buying has temporarily become overheated. However, concerns about tighter regulation could resurface depending on the US midterm elections.