Last week, the Nikkei 225 rebounded from early selling, recovering to the ¥68,000 range and rising for 3 consecutive weeks. This week, events including the convening of an extraordinary session of the Diet, U.S. economic indicators and earnings announcements are scheduled, with the possibility of reaching the 70,000 range in focus.
Last week, the Nikkei 225 rebounded after opening under selling pressure and ended trading at ¥68,309. The closing price was up ¥1,945 from the previous weekend, confirming a third consecutive weekly gain. Continued interest in AI- and semiconductor-related stocks and a positive reaction to Micron's earnings were cited as factors behind the rise. The movements in Nikkei 225 futures overnight trading also put ¥70,000 in view.
This week, technical strength has been observed on a daily basis, including a break above the 75-day moving average and an upper resistance line, while movements in the Bollinger Bands are also attracting attention. The night-session close was reported at ¥69,760, potentially creating conditions that could increase the possibility of reaching the 70,000 range.
At the same time, some observers note that rising interest rates in Japan and the U.S. could weigh on stock prices, with trends in EPS and PER expected to determine the market's remaining upside. Ahead of the next earnings season, the focus will be on how EPS growth and the acceptable PER range develop.
This week includes earnings announcements from consumer-related companies such as Fast Retailing and Seven & i Holdings, as well as Yaskawa Electric. Attention is also turning to buying trends in TOPIX and small- and mid-cap stocks. Events such as the convening of an extraordinary session of the Diet, the release of key U.S. indicators and publication of the FOMC minutes could also affect the market.