The expected range for the Nikkei 225 next week (9–13 November) is ¥54,000–¥60,000. An autonomous rebound after the crash is expected, but close attention should be paid to the direction of U.S. regulation of AI data centers.

The Nikkei 225 fell sharply this week against the backdrop of factors including the Democratic Party’s victory in the U.S. midterm elections, and slipped below ¥57,000 by the end of the week. It ultimately closed at ¥57,434.77, down substantially from the previous week, a decline of ¥5,855.34, or 9.25%. Concerns over a slowdown in AI investment and the performance of the SOX Index weighed on the market, leaving the Nikkei sharply lower on a closing-price basis.

The expected range for next week is ¥54,000–¥60,000. While an autonomous rebound from oversold conditions is anticipated, supply-demand adjustments in AI and semiconductor-related shares are expected to continue. In the U.S. market, the direction of AI data center regulation and the release of the U.S. employment report could affect interest rates and foreign exchange rates. In Japan, indicators including the CPI and PPI from the 9th to the 13th will also be closely watched.

In terms of the schedule for earnings and economic indicator releases, earnings reports from Furukawa Electric and SoftBank Group, among others, are scheduled in Japan. In the U.S., earnings reports from CoreWeave, Cisco and Applied Materials, among others, are expected to influence the outlook for AI investment. Trends in price indicators in Japan and the U.S. are expected to influence long-term interest rates and the performance of technology stocks.

The 3 stocks attracting attention next week are Hulic, Grooving and Oriental Land. Hulic’s medium- to long-term plan, including a dividend increase, Grooving’s business transformation against the backdrop of growing demand for AI applications, and Oriental Land’s expansion of visitor numbers, including through Christmas events, have been cited as factors that could affect share-price performance.