After recovering to the ¥70,000 range, the Nikkei average has entered another correction phase. The focus will be on trends in AI- and semiconductor-related stocks and next week's earnings announcements and economic data releases.
The Nikkei average ended slightly lower day on day at ¥69,030.92, marking its third consecutive decline. Although it held above ¥70,000 on the 7th, it fell below ¥70,000 on the 8th and has remained in the ¥69,000 range.
With the Sports Day holiday making this a 4-day trading week, market movements are expected to be limited, but AI- and semiconductor-related stocks are expected to drive the market. ASML is scheduled to announce its results on the 14th and TSMC on the 15th, and reports say strong results could provide a buying incentive for Japanese equities.
Among US and European developments, SB Group was reported to have been affected after financial media reported that OpenAI's sales would fall short of market expectations. US CPI is scheduled to be released on the 14th as a key economic indicator for Japan and the United States, and the result could affect expectations for US rate hikes.
On the corporate front, Fast Retailing expects an increase in consolidated net income for the current fiscal year, but the shortfall versus market expectations has weighed on its share price. This week's market direction is likely to depend on supply and demand following earnings announcements from AI- and semiconductor-related stocks and on the trend in market expectations.