The Nikkei 225 closed on 15 October at ¥64,425.95, down ¥3,318.34 from the previous day, marking its third-largest decline on record. AI and semiconductor stocks led the selling, with ¥62,700, ¥61,000 and ¥60,000 cited as downside targets. The outlook indicated that concerns could ease if the index recovers to the ¥67,000 range within a few days.
The Nikkei 225 came under heavy selling pressure following declines in U.S. stocks and the spread of credit concerns about cloud service companies serving the AI market, falling 4.9%. The index's susceptibility to the impact of high-priced stocks was highlighted, and its decline was the third-largest on record.
The article identifies high-priced AI and semiconductor stocks as leading the Nikkei 225's decline and presents an analysis that the contributions of the top 10 stocks explain much of the fall. It also expresses the view that the scale of the decline itself should not be treated as an excessive reaction.
Downside targets for the Nikkei 225 are cited at ¥62,700, ¥61,000 and ¥60,000. A recovery to the ¥67,000 range within a few days could enable the index to break above the upper cloud boundary again, temporarily easing downside concerns.
The results announcements of major technology companies from next week onward are cited as a key focus. The issue will be whether trends in AI demand and capital investment plans, free cash flow, and cyclical investment in AI-related revenue can ease market caution, according to the report.