As funds flow into sectors outside non-AI-related areas, attention is focusing on the emergence of stocks capable of substantial gains. A part-time investor with more than ¥1 billion in assets forecasts that the Nikkei Average will reach a new high for the year.
Analysis indicates that sector rotation in the stock market is progressing from AI- and semiconductor-related stocks toward non-AI sectors, with buying expected to broaden across a wide range of stocks in the second half of the year as new money flows into the market. There is a view that the inflow of new funds into the stock market will increase the likelihood of the Nikkei Average breaking its record high of ¥72,831.73.
By contrast, part-time investor Kabuoku Taro, who has more than ¥1 billion in assets, points to the possibility that the Nikkei Average will reach a new record high during the year. However, he has become increasingly cautious about the market's sustainability, saying that factors such as rising interest rates and a weaker yen could weigh on the stock market.
While the phase led by AI- and semiconductor-related stocks is beginning to turn, geopolitical turmoil around the world, including Ukraine, the Gaza Strip and Iran, as well as concerns over fiscal deficits, could lead to higher interest rates. The view presented is that interest-rate and foreign-exchange trends will be important for the market going forward.
The article presents investors' outlooks for the future direction of the Nikkei Average and reports that non-AI sector stocks are also attracting attention.