The Nikkei Average's forecast range for this week is expected to be ¥62,500–¥67,000, with AI- and semiconductor-related stocks likely to continue driving the market after last week's sharp drop. Attention is also focused on US market developments and earnings announcements.
AI- and semiconductor-related stocks came under heavier selling in Tokyo last week, and the Nikkei Average ended at ¥65,324 after falling sharply from the previous weekend. The market is expected to continue testing lower levels this week, with AI-related names potentially determining the market's direction.
US CPI and PPI were reported to have exceeded market expectations, and expectations for additional Fed rate hikes are seen as strengthening, although views have also emerged that rate hikes may in fact be curtailed. Market anxiety is high, and movements in technology stocks are said to affect the Japanese market's opening.
Views have emerged that the assessment of AI investment is also beginning to change. The scale of investment and uncertainty over when returns will be realized are again being debated in the market, with future investment profitability expected to be the focus.
This week's focus includes earnings from US company META, as well as earnings news from NFLX, IBM, TSLA and TXN. Among Japanese companies, developments at Disco and Fanuc are also in focus. The near-term downside guide for the Nikkei Average is ¥62,500, with a forecast range of ¥62,500–¥67,000.