The Japanese market came under broad-based selling following the plunge in AI stocks after the US midterm elections, while earnings announcements are concentrated this week. A succession of companies have announced upward earnings revisions and increases in share buybacks, showing signs of a rebound.
Last week, AI stocks plunged on the impact of the US midterm elections, sending Japanese and US markets into broad-based declines, particularly among data center-related stocks. Semiconductor-related stocks and stocks of companies targeted for AI investment fell sharply, intensifying selling across the market.
On the 5th, Toyota Motor announced an upward earnings revision and an increase in its share buyback. The announcement was well received, and the stock rose sharply during the day, recording a 16.7% gain from the previous day. It remained up 8.7% for the week.
Defensive stocks and some domestic-demand stocks, including Yokohama Rubber, JR Central and Tsuruha Holdings, rose for the week. Sony Group also recovered, gaining 4.7% on its contribution to earnings. Resource stocks, meanwhile, were generally weak on lower crude oil prices.
This week will see earnings announcements from SoftBank Group and CoreWeave, as well as the peak of earnings announcements by Japanese companies. A rebound in AI stocks will depend on earnings results, and the outlook toward the year-end market will be in focus.