The Nikkei Stock Average posted a modest rebound this week, its first in two weeks. While the broader market remained in a wait-and-see mood, investor interest in individual stocks intensified. NVIDIA’s earnings helped draw attention to semiconductor-related stocks.
The Nikkei Stock Average rose ¥389 from the previous weekend to ¥66,405 in the Tokyo stock market this week, marking its first weekly gain in two weeks. The index briefly approached ¥67,000 but struggled to extend its gains, while trading was subdued, particularly in major stocks. Meanwhile, investment funds flowed into other sectors, with the TOPIX rising nearly 2% and the Growth Market 250 Index gaining more than 7%.
Looking at the market’s weekly performance, on Monday the 24th, rising long-term interest rates heightened concerns that the overall market was expensive, increasing selling pressure, particularly in major stocks. The market rebounded on Tuesday the 25th, recovering from an early-morning test of lower levels and remaining in positive territory. Buying continued to dominate on Wednesday the 26th, bringing the Nikkei back above ¥66,000. On Thursday the 27th, profit-taking spread, particularly among semiconductor-related stocks, leaving the Nikkei slightly lower, although the TOPIX finished in positive territory. The market rebounded again on Friday the 28th, with AI and semiconductor-related stocks coming under buying interest.
By sector, buying was particularly visible in domestic-demand and financial stocks, while export-related stocks were mixed. Buying advanced in areas such as ceramics and machinery, while precision instruments also saw some selling. Funds continued to rotate into small- and mid-cap stocks this week, with the Growth Market 250 Index posting a significant gain.
Next week, the market is expected to move in response to developments in interest rates and foreign exchange ahead of the US jobs report. Domestic events on the calendar include the release of July industrial production data and the April-June quarterly Survey of Incorporated Enterprises, while overseas attention will focus on US employment indicators, ISM data and PMI-related indicators.