Ahead of earnings announcements from AI-related companies, including SoftBank Group, and the release of the US consumer price index, the market is assessing whether the AI shock will continue.
The Nikkei 225 plunged last week against the backdrop of the Democratic Party's victory in the US midterm elections, falling well below ¥60,000 on the 6th. The focus in the market is whether the impact of the AI shock will continue this week, and Takashi Hiroki (広木 隆) of Monex Securities has pointed to the possibility of a market phase in which it searches for a bottom after the decline pauses. Attention is focused on US AI-related stocks amid the race to develop AI, and earnings announcements from related companies are also scheduled.
Earnings announcements scheduled for this week include those from AI-related companies such as SoftBank Group and Fujikura. Mr. Hiroki suggested that AI development is not going to stop and that the market's view could regain composure. The performance of AI-related stocks is expected to be affected depending on the earnings announcements.
Regarding the US consumer price index scheduled for release on the 10th Japan time, a higher-than-expected reading could rekindle inflation concerns and renewed upward pressure on long-term yields. Movements in long-term yields could also affect Japanese semiconductor-related stocks, and the expert quoted in the article is focusing on this point.