The Nikkei 225 plunged last week on the CoreWeave shock, with its closing level falling to ¥65,324. With downside risks still present this week, views are spreading that undervalued Japanese stocks should be regarded as an opportunity to buy on dips.
During last week's trading period, the Nikkei 225 plunged on the CoreWeave shock, with its closing level falling to around ¥60,532. The causes included credit concerns surrounding U.S. emerging AI cloud company CoreWeave and selling in AI and semiconductor stocks linked to those concerns.
Some analysts believe the shock is not over, and the Nikkei 225 could start this week lower as well. Meanwhile, TOPIX is considered relatively resilient in reflecting the performance of Japanese stocks overall, and buying pressure at lower levels is expected to continue.
Concerns over higher long-term U.S. interest rates remain amid a prolonged Middle East crisis, rising crude oil futures and an increase in the U.S. headline inflation rate. These factors are contributing to higher volatility across the market.
The BOJ Tankan survey showed strong sentiment among large companies, and some analysts expect strong earnings as the July-September 2026 reporting season gets into full swing. This is viewed as a factor supporting the long-term upside potential of Japanese stocks.