The Nikkei Stock Average rebounded on the 24th, rising 575 yen from the previous day to close at 59,716 yen, marking a new record high. The index briefly touched 60,013 yen the previous day, pushing the Tokyo market into uncharted territory.

While the Iran situation remains uncertain, "optimism is emerging that as long as combat doesn't resume, markets are becoming less concerned about Iran," according to a market participant. Instead, attention is concentrated on technology stocks amid overwhelming popularity in AI and semiconductor-related shares.

Although the Tokyo market enters the Golden Week holidays in the latter half of next week, a packed schedule of notable events promises continued active trading. Next week marks "central bank week," with the Bank of Japan's monetary policy meeting on the 27th-28th, the Federal Open Market Committee (FOMC) on the 28th-29th, and the European Central Bank (ECB) governing council on the 29th-30th. While all are expected to maintain current monetary policy, currency markets could experience volatility depending on developments.

Earnings season kicks into full gear in both Japan and the U.S. Among U.S. companies, big tech earnings are scheduled, with Meta Platforms , Amazon , Microsoft , and Alphabet reporting on the 29th, and Apple on the 30th. "Capital expenditure trends for data centers and other infrastructure are attracting heightened interest" in these big tech earnings, according to an analyst. Expanded spending won't necessarily be welcomed - if investments are perceived as excessive, share prices could quickly sell off. The earnings from these big tech hyperscalers will likely be a major indicator for the outlook of AI and semiconductor-related stocks.

Furthermore, among AI and semiconductor-related companies, Corning reports on the 28th, Teradyne on the 29th, and SanDisk on the 30th. In Japan, ADVANTEST CORPORATION <6857> reports on the 27th, Tokyo Electron Limited <8035> and Lasertec corporation <6920> on the 30th. The earnings results from market leaders like ADVANTEST are expected to move markets significantly.

Beyond the above schedule, overseas releases include the U.S. April consumer confidence index on the 28th, U.S. March durable goods orders on the 29th, U.S. Q1 GDP and March personal consumption expenditures (PCE) price index on the 30th, and the U.S. April ISM manufacturing index on May 1st. Verizon Communications reports on the 27th, Coca-Cola and Starbucks on the 28th, Caterpillar on the 30th, and Exxon Mobil and Chevron on the 1st.

Domestically, March unemployment rate and job openings-to-applicants ratio will be released on the 28th, March industrial production on the 30th, and April Tokyo-area consumer price index (CPI) on the 1st. Markets will be closed on the 29th for Showa Day. Hitachi, Ltd. <6501> and ANRITSU CORPORATION <6754> report on the 27th, TDK Corporation <6762>, Shin-Etsu Chemical Co., Ltd. <4063>, and NEC Corporation <6701> on the 28th, Murata Manufacturing Co.,Ltd. <6981> on the 30th, and Mitsubishi Corporation <8058>, DMG MORI CO., LTD. <6141>, and SEIKO EPSON CORPORATION <6724> on the 1st. The expected range for the Nikkei Stock Average next week is approximately 58,500-60,700 yen. (Hideyuki Okazato)

Source: MINKABU PRESS

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