Nikkei's Recent Surge Concentrated in Select Stocks, Mirrors South Korean Market, with Short-Term Correction Expected

Deep News
05/08

Market analysis indicates that the Nikkei Index's significant surge in the previous trading session is likely to be followed by a rapid adjustment. The current rally is highly concentrated in a few sectors, primarily artificial intelligence (AI)-related stocks, suggesting weak sustainability. Media calculations show that since April, the top ten contributing stocks, including SoftBank Group and Advantest, have accounted for over 80% of the Nikkei Average's gains. This proportion is significantly higher than the over 30% contribution seen when the index reached a阶段性高点 earlier this year in February. In October last year, driven by a rally linked to the election of Prime Minister Sanae Takachi and a surge in tech stocks, the contribution rate from these leading stocks approached 90%. Following its peak at the end of that month, the Nikkei Index fell nearly 7% within approximately three weeks.

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