The Nikkei Average fell ¥2,631, or 4.02%, this week. As concerns about the outlook for AI-related businesses spread, the market maintained a broad view while attention shifted toward individual stocks.
The Nikkei Average fell ¥2,631 week on week, recording a 4.02% decline. Although the size of the decline narrowed, the index posted a sharp drop for the second consecutive week and fell to a three-month low on the 23rd. The effects of the CoreWeave shock lingered, while concerns about the outlook for AI-related businesses heightened caution across the market.
Looking at individual stocks, declines in electronic components and semiconductor-related names stood out. Taiyo Yuden fell about 16.94% for the week, while SCREEN Holdings fell about 15.82%. SoftBank Group also posted a sharp decline, as concerns spread over the earnings outlook for AI-related investments.
The risk of a CoreWeave default heightened caution, while reports in a British newspaper that Microsoft had withdrawn from plans to build data centers for neo-cloud companies deepened market concerns over the neo-cloud sector. Some market participants also took the view that the possibility of regulation of data center construction could affect the business models of AI companies.
Going forward, individual stock movements are expected to become a focus of the market as central bank week approaches and earnings announcements gather pace. While market participants remain on the sidelines ahead of central bank meetings in Japan, the US and Europe, the earnings announcements beginning on the 27th onward will provide more opportunities to assess companies’ earnings outlooks.