In the Japanese market on the 21st, SpaceX's earnings eased concerns related to AI and stocks rebounded. Meanwhile, the bond market and yen lacked direction and remained unsettled.
Following strong U.S. earnings results, risk appetite in the Japanese market partly recovered. SpaceX's July–September revenue and profit exceeded market expectations, easing concerns related to AI. Preliminary earnings from server maker Super Micro Computer also beat expectations, and related stocks were reported to have risen in after-hours trading.
Market participants expect a recovery in enthusiasm for AI investment, while noting that credit risks and macroeconomic concerns remain. The Nikkei 225 rose for the first time in 3 trading days, but the momentum from short covering was limited.
In the bond market, the yield on newly issued super-long 30-year government bonds fell, while trading in 10-year and 20-year bonds was mixed. The yen continued to trade in the low ¥158 range, prompting views that range-bound trading would continue.
Investor attention is expected to shift next to earnings from Meta Platforms and Tesla. The outlook for AI-related capital investment and the state of free cash flow remain key areas of interest.