As the Nikkei 225 rebounds after its sharp decline from the previous weekend's close, caution over the oversold argument for AI-related stocks is intensifying. The credibility of EPS forecasts is wavering, and buying appetite is reportedly subdued.
Although the Nikkei Stock Average is in a rebound phase following its sharp decline from the previous weekend's close, the overall market mood is reportedly difficult to describe as brighter. Reports say the backdrop includes concern over the overheating of AI-related stocks and the reliability of the earnings forecasts supporting their valuations.
The article reportedly says that investors' subdued buying appetite has persisted and presents the view that many of today's buyers are merely short sellers covering their positions.