Weekly margin trading data as of 10/23 showed an increase in short positions and a sharp decrease in long positions. The margin ratio declined, while the Nikkei Average remained weak.
According to an analysis of margin balances, as of 23 October, total margin balances across the 2 markets showed short positions up ¥21.5 billion from the previous week and long positions down ¥129.9 billion. The margin ratio consequently declined to 9.49. The article points out that pro-cyclical trading was observed while the Nikkei Average remained weak.
During the week, a sense of caution toward AI-related stocks continued globally, while a series of reports of corporate cyber incidents reportedly strengthened risk-aversion sentiment. The Nikkei Average fell on both the 19th and 20th, and although it rose by more than ¥500 on the 21st, gains were limited. On the 22nd, AI-related stocks fell broadly following a sharp decline in Lam Research in after-hours trading in the US, and the index at one point fell by 4 digits again on the 23rd.
The Nikkei Average also fell by 4 digits at points after the 23rd, temporarily dropping to the ¥61,400 range. For the week, the Nikkei Average fell approximately ¥2,631, forming a bearish candlestick for the third consecutive week.