The article reviews market movements following the easing of US price pressures and semiconductor earnings, next week’s key events, and trends in AI- and semiconductor-related stocks as investment themes. The stocks highlighted are SCREEN Holdings, BayCurrent, GS Yuasa, Resonac Holdings Corporation and AI MECHATRONICS.
The Nikkei Average rose this week on the strength of US technology stocks, but profit-taking spread toward the end of the week on concerns over higher US long-term interest rates, rising oil prices and the profitability of AI investment, intensifying the market’s corrective tone. The index recovered to the ¥70,000 range at the start of the week, but subsequently remained under pressure, particularly among semiconductor- and AI-related stocks. With the Japanese market due to be closed on one day next week, domestic and overseas economic data and earnings announcements are expected to be the market’s focus.
In terms of sector rotation, dip-buying in AI- and semiconductor-related stocks is expected if easing US price pressures and strong earnings from major semiconductor companies are confirmed, while rising interest rates resulting from a resurgence of inflation will require caution. Selective buying of resource and energy stocks, strong-earning domestic-demand stocks and defensive stocks is also expected. Key events next week include Japan’s corporate goods price index, US CPI and PPI data, ASML’s earnings, US retail sales and TSMC’s earnings.
The 5 stocks highlighted are SCREEN Holdings, BayCurrent, GS Yuasa Corporation, Resonac Holdings Corporation and AI MECHATRONICS, with growth themes including semiconductor manufacturing equipment, DX support, batteries, back-end semiconductor materials and advanced equipment, respectively. Their share-price movements are showing rebounds based on their previous highs and moving averages, and investors are expected to position for another leg higher.