AI stocks continued to decline last week, while cybersecurity stocks surged. Domestic-demand sectors, including restaurant and real estate stocks, also remained firm, drawing attention this week to the performance of AI stocks ahead of a concentration of earnings announcements.
AI-related stocks fell for the second consecutive week last week, while cybersecurity stocks surged as one of the market's leading sectors. An improved outlook for Meta Platforms' AI investment and rising risks of attacks exploiting AI affected the performance of AI-related shares. In the Japanese market, Advantest fell 6.3% from the previous weekend and SoftBank Group fell 13.5%, weighed down by the impact of capital expenditures related to AI.
Long-term interest rates also continued to decline, directing funds toward domestic-demand stocks less affected by the stronger yen. Cybersecurity stocks continued to surge, with Showcase, which provides online identity verification services, setting a new high even compared with the previous week. Restaurant stocks were bought on expectations of measures to stimulate consumption under the Takaichi administration, lifting both Gurunavi and Yoshinoya Holdings.
Real estate and resource stocks also helped support the market. Mitsubishi Estate rose on the benefit of lower interest rates, while INPEX was bought against the backdrop of higher crude oil prices. This week will see a succession of earnings announcements from AI semiconductor companies including Microsoft, and expectations of a rebound in AI stocks are also likely to be discussed.