Japanese stocks fell sharply this week, with the Nikkei Average closing at ¥65,324, down ¥3,706 from the end of the previous week. The outlook remains uncertain for next week, with attention focused on concerns surrounding AI and the impact of Middle East developments.
The Nikkei Average closed at ¥65,324 this week, down ¥3,706 from the end of the previous week, marking its first sharp weekly decline in 5 weeks. It gave up more than one-third of the approximately ¥5,000 gain made over the past 4 weeks, once again highlighting the extent of swings in sentiment toward AI stocks.
On the Nikkei Average's weekly chart, the close fell below the 26-week moving average of ¥65,672, making whether the index can recover this level over the coming period a key focus. TOPIX, meanwhile, remains above its 13-week moving average, which is calculated using all listed stocks, suggesting that the market as a whole is not in a breakdown phase.
However, in addition to uncertainty including developments in the Middle East, AI-related factors are also expected to contribute to movements during a correction, according to some observers. Across the market as a whole, a period in which investors will seek confirmation that the decline has bottomed is expected to continue.