Next week's Nikkei 225 is expected to be driven by the backdrop to the US stock sell-off, trends in AI semiconductor stocks, ASML and TSMC earnings, and the release of US CPI. The Nikkei is reportedly expected to trade in the upper ¥60,000s.
The US market this week saw a sharp decline after a steep rise in AI-related stocks, triggered by higher crude oil prices and reports regarding projections for OpenAI's sales. The US 10-year Treasury yield remained elevated at around 5.2%, weighing on the broader equity market.
By stock, AMD made bullish statements, while Intel came under heavier selling, and Caterpillar fell sharply on FTC developments. PepsiCo, which reported strong earnings, and Chipotle, which was the subject of takeover rumors, also drew attention.
In Tokyo, the Nikkei 225 at times broke through the psychological ¥70,000 level, but was ultimately pushed back by overseas headwinds and traded in the upper ¥60,000s toward the end of the session.
Next week, events including US CPI due on the 14th, ASML's earnings and TSMC's earnings will be the market's focus. Inflation trends and the health of semiconductor demand could determine the Nikkei's direction. Some market participants expect next week's range to center around ¥67,500.