With developments in the US and Japanese stock markets after the US midterm elections in focus, Intel's sharp decline was pronounced in the US market, while the Tokyo market searched for a floor before futures-led buying limited the decline. Going forward, developments after the midterm elections and movements in AI-related stocks are expected to be key factors for the market.
Selling accelerated in AI- and semiconductor-related stocks in the US market, with Intel at one point plunging more than 30%. This was followed by pronounced declines in the Nasdaq Composite and the SOX Index. The Nikkei 225 extended its decline from the previous close, but after searching for a floor, the Tokyo market saw the decline limited by futures-led buying.
Past market patterns suggest that the US stock market tends to move higher over the medium term after midterm elections, and some believe investor buying demand may emerge. However, others believe a case in which actual demand for AI-related stocks cools rapidly is unlikely.
The November market range is likely to be sensitive to developments in the US and Japanese markets, and the Nikkei 225 may at times focus on the ¥68,000 range or ¥70,000. On the other hand, if downside risk in the Nasdaq increases, the Nikkei 225 may have further room to fall, while dip-buying in semiconductor manufacturing equipment stocks and continued interest in consumer-related stocks such as retail and restaurants may be possible.
(Source of the information in this article: Kabutan News)