The Nikkei Stock Average surged \1,028 on the 10th, briefly recovering to the \57,000 level. Fast Retailing <9983> alone contributed approximately \650 to the Nikkei's gain. Together with Tokyo Electron <8035> and Fujikura <5803>, these three stocks accounted for over \900 of the advance, highlighting a concentrated rally focused on AI and semiconductor-related shares.

The market is closely watching the U.S.-Iran peace negotiations scheduled for the 11th. One analyst noted, "The reopening of the Strait of Hormuz is unlikely to proceed smoothly, and oil prices are likely to remain elevated. That said, the fact that the U.S. and Iran are sitting down at the negotiating table is significant. While markets may continue to react to headlines in the near term, the focus appears to be gradually shifting away from the Middle East."

This trend has contributed to gains in the equity market, with the Nikkei recovering two-thirds of its recent decline and approaching its February 27 record high of \58,850. Recent sharp gains in Kioxia Holdings <285A> and Furukawa Electric <5801> exemplify active buying in AI infrastructure-related stocks driven by the proliferation of generative AI. There is potential for renewed expansion in the NT ratio (Nikkei Stock Average divided by TOPIX) as select AI and semiconductor stocks drive the market higher.

Meanwhile, the U.S. earnings season begins next week. Notable semiconductor-related companies including ASML Holding on the 15th and Taiwan Semiconductor Manufacturing Company (TSMC) on the 16th are scheduled to report results. The Bank of Japan's monetary policy meeting and the Federal Open Market Committee (FOMC) are also scheduled toward month-end, with Japanese and U.S. monetary policy developments drawing attention. As the focus gradually shifts away from the Middle East, the U.S. March Consumer Price Index (CPI) to be released tonight is being closely monitored.

Other scheduled events for next week include: overseas, U.S. March existing home sales on the 13th, U.S. March Producer Price Index (PPI) on the 14th, U.S. April New York Fed manufacturing index and Beige Book on the 15th, China's first quarter GDP, U.S. March industrial production, and U.S. April Philadelphia Fed manufacturing index on the 16th. The IMF World Economic Outlook will be released on the 14th. Goldman Sachs on the 13th, JPMorgan and Johnson & Johnson on the 14th, Citigroup, Bank of America, and Morgan Stanley on the 15th, and Netflix on the 16th will announce earnings.

Domestically, March money stock will be released on the 13th, 20-year JGB auction on the 14th, February machinery orders and March foreign visitor arrivals on the 15th. BOJ Governor Ueda will speak at a trust banking conference on the 13th. Cosmos Pharmaceutical Corp <3349> and Kohnan Shoji <7516> will report earnings on the 13th, Toho <9602>, Takashimaya <8233>, and BayCurrent, Inc. <6532> on the 14th, Yoshimura Food Holdings <2884> on the 15th, and Gendai Agency Inc. <2411> on the 17th. The expected range for the Nikkei Stock Average next week is \55,800-\58,200. (

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.