The Nikkei 225 is expected to face upside resistance next week, while credit concerns over AI-related stocks and CoreWeave's funding raise concerns are likely to dampen market sentiment, reducing momentum toward a recovery to ¥70,000.
The Nikkei 225 is expected to face upside resistance next week, from 19 to 23, as credit concerns surrounding U.S. AI startups are expected to weigh on investor sentiment. Some analysts also point to concerns that hyperscalers' corporate bond financing could affect the allocation of funds in the market.
After recovering to the ¥70,000 level for the first time in approximately 3 months on the 6th, the Nikkei 225 fell again as profit-taking selling took hold. As of the morning of the 15th, its cumulative decline for the week was approximately ¥4,541, or approximately 6.6%, while the morning decline on the 15th was approximately ¥3,255, a level comparable with the market's largest historical drops.
AI- and semiconductor-related stocks were sold heavily, with Advantest, Tokyo Electron and SoftBank Group weighing on the Nikkei 225. Credit concerns surrounding U.S. CoreWeave were cited as a major factor. The company had been building its own AI data centers and raising funds.
CoreWeave's debt had expanded to approximately $52 billion at the end of June, heightening concerns over higher funding costs ahead. The yield on the company's bonds, which carry coupons in the high-9% range, temporarily rose to approximately 15%.