The Nikkei temporarily fell ¥892 in the morning following reports that OpenAI's sales forecast had fallen short, but recovered in the afternoon and traded modestly lower. Movements in US equities, long-term interest rates, crude oil and the yen influenced the Nikkei, as markets focused on next week's key indicators and earnings.
The Nikkei closed at ¥69,030 in trading on the 9th, down ¥11 from the previous day, after showing more volatility than the headline suggested following 3 straight sessions of decline. It was sold down as much as ¥892 in the morning after reports that OpenAI had lowered its sales forecast, but buybacks recouped much of the decline.
In the US market, all 3 major indexes rebounded, with the Dow rising. The US 10-year Treasury yield remained elevated at around 5.24%, while WTI crude oil held near $91. Dollar-yen traded in the low ¥158 range, and markets continued to be whipsawed by movements in oil and interest rates.
The market is focusing on AI-related stocks. Selling pressure on SoftBank Group weighed on the Nikkei, but dip-buying in stocks that had fallen on the reversal limited the overall decline. An indicator of consumer sentiment remained subdued.
US major-bank earnings and CPI are scheduled for release next week. The key to the Nikkei breaking through the ¥70,000 milestone is expected to come down to 3 factors: the sustainability of AI optimism, long-term interest rates and crude oil, and CPI and bank earnings.