The Nikkei 225 has continued to move around ¥66,000 in a prolonged period of stagnation, while the Federal Reserve's PCE deflator, developments at the Jackson Hole symposium and NVIDIA's earnings have kept investors on the sidelines in AI-related stocks. Even so, positive sentiment following Salesforce's earnings and renewed activity in AI-related stocks could lead to a shift toward TOPIX-style investment flows.
The Nikkei 225 is currently range-bound around ¥66,000, while trading volume on the TSE Prime Market has continued to fall below 2 billion shares on all days except weekends. This week's scheduled market-moving events, including expectations that the Federal Reserve will place importance on the PCE deflator and speeches at the Jackson Hole symposium, appear to have discouraged active trading. The subdued performance of AI- and semiconductor-related stocks ahead of NVIDIA's earnings announcement may also have been a factor.
As the market works through these events, it could rebound provided the Federal Reserve chair does not make somewhat hawkish remarks in the speech. At the same time, some expect selling pressure from investors waiting for a recovery, limiting the scope for an AI- and semiconductor-led advance. Following Salesforce's strong earnings, concerns about the threat posed by AI have receded. If funds continue to flow noticeably into software-related stocks, investors should be prepared for a shift toward TOPIX-style stocks.
The stocks to watch are NEC, ITOCHU Corporation, Nomura Research Institute, OBIC Business Consultants and Terumo. Each company is introducing new technologies related to AI and digitalization and strengthening its organization and businesses, with their share prices each showing signs of recovery at their respective stages.
NEC plans to begin selling new SCM functions using AI agents in September. Against the backdrop of stable earnings from its non-resource businesses, ITOCHU Corporation is promoting joint development in the functional textiles sector. Nomura Research Institute aims to improve development efficiency and profit margins through the implementation of generative AI for internal use. OBIC Business Consultants is rolling out new functions including the Bugyo AI Agent, while Terumo holds high market shares overseas and is expanding its sustainability ratings.