The Nikkei 225 fell sharply and traded below ¥65,000 at one point, while crude oil moved toward higher levels, approaching the $110s. Multiple factors, including the CoreWeave shock and developments in Chinese semiconductors, are expected to affect markets this week.
As this week’s market outlook, the Nikkei is expected to test a rebound following the decline, with attention drawn to the fact that it traded below ¥65,000 at one point. The discussion also covers after-hours movements and the unwinding of past cross-shareholdings, pointing to uncertainty over future price movements.
Today’s commentary examines multiple factors, including the CoreWeave shock. Reports that China’s CXMT will launch memory products featuring new technology have been cited as a factor behind the market decline, while structural changes in global markets, including ASML’s next-generation EUV technology, are also discussed.
The movements of USD/JPY and crude oil are also examined. Some view crude oil as having the potential to find support in the $100s while moving higher toward around $110. The NY Dow is said to have reached a high, while the Nasdaq is expected to remain weighed down by concerns.
Among individual stocks, attention is expected to focus on developments at Advantest, Disco and Lasertec, with the ability to rebound after the breakdown of a trading range and resilience during declines likely to be key points. Across the market, developments at CoreWeave and in semiconductor demand, inflation data releases and uncertainty over monetary policy are the main issues.
As of the end of this week, views have cited around ¥62,000 and around ¥64,000 as potential future ranges for the Nikkei 225, with around ¥68,000 identified as a longer-term target. These levels may vary depending on the current repair plan and the shape of the trading range.