The direction of the market in the first half of the third week of August will be influenced by AI and semiconductor-related stocks and the performance of Japanese and U.S. equities. The article points out that the market's direction will become clearer depending on developments in the first half of the third week, and cites Mitsubishi Corporation and other stocks as attracting attention.
The Nikkei Average had continued to undergo a correction after peaking at an all-time high on 22 June, but recorded a sharp gain on 5 August, recovering to the 66,000 level. The background factors were easing uncertainty surrounding the situation in the Middle East and major U.S. stock indexes reaching new all-time highs. The market then fell back on the 6th, with the decline continuing on the 7th.
AI and semiconductor-related stocks have been identified as the market's potential leaders, and, as in past bubble markets, the sector could again take center stage this time. However, if the sector appears to have reached a peak, it could also form a market-wide top. Whether a rebound will emerge depends on developments from here.
If activity returns to the broader market in the first half of the third week, it will be necessary to determine whether the rise will continue in both Japan and the United States. Trading is expected to focus on TOPIX-style sectors such as trading companies, marine transportation, steel, retail, land transportation and communications, although it is not yet clear which sectors will take the lead.
Among individual stocks, new high-fliers are also attracting attention, with stocks recording high trading volumes expected to have an advantage. Specific names cited include Mitsubishi Corporation, Nippon Yusen, Pan Pacific International Holdings, Fujitsu and Nippon Steel.