Selling in semiconductor and AI-related stocks is expected to keep the Nikkei Average near its lows during the afternoon session. Attention is focused on Disco's earnings announcement and the release of domestic inflation data against the backdrop of U.S. market developments.
The focus for the Nikkei Stock Average in the afternoon session will be whether semiconductor-related stocks can halt their declines while the index remains near its lows. U.S. stocks rose the previous day on strong SpaceX earnings, but selling in semiconductor-related stocks pushed down the Japanese market. Whether selling in semiconductor manufacturing equipment and AI infrastructure-related stocks has run its course will determine the market's direction in the afternoon session.
With developments in Asian markets, including South Korea, in focus, a renewed rise in oil prices amid tensions in the Middle East is also expected to affect the market.
Disco is scheduled to announce its financial results for the second quarter of the fiscal year ending March 2027 at 16:00 today, providing an opportunity to assess the earnings outlook for semiconductor-related companies. The nationwide consumer price index for September is also due to be released domestically the following day.
The relative strength of overall market movements and individual stocks will be an important focus ahead of the earnings and inflation data releases.