Although Japan's stock market has continued to decline almost across the board, some stocks are reportedly attracting buying interest, with INPEX and SoftBank Group among those showing notable moves. Continued increases in crude oil prices and long-term interest rates are cited as potential drivers.
Last week, 27 sectors declined, with most stocks outside the resources sector coming under selling pressure. As higher crude oil prices, a stronger yen and rising interest rates combine to weigh on the market, some expect weakness to continue from this week onward, depending on monetary policy developments in Japan and the United States and developments in the Middle East. While caution is spreading to AI-related stocks, some stocks have continued to attract buying interest even as share prices decline.
Among this week's stock movements, INPEX (1605) rose 4.0% on higher crude oil prices. SoftBank Group (9984) surged last week on expectations for a new OpenAI model, but it has been pointed out that the stock could come under selling pressure this week over concerns about an IPO postponement. Kioxia HD (285A) saw its gain from the previous week narrow under pressure from higher long-term interest rates, ending at -0.8%.
Market attention is focused on expectations of back-to-back rate hikes in Japan and the United States. The likelihood of a rate hike at the US FOMC on the 16th is expected to increase, while the Bank of Japan's Monetary Policy Meeting is scheduled to conclude on the 18th. Escalating tensions in the Middle East and continued increases in crude oil prices are also cited as market drivers, and developments in AI-related stocks and OpenAI could affect the broader market.