Matsui Securities Co., Ltd.

In the Tokyo market, Fast Retailing was sold despite strong earnings, while AI and semiconductor-related stocks held firm, with some seeing this as a sign of a return to the AI market following the passing of quarter-end supply-demand events. Fast Retailing shares, which announced its third upward revision this fiscal year, were seen as having run out of catalysts, with attention shifting to a rotation of funds into AI stocks. Tomoichiro Kubota of Matsui Securities noted that with the passing of supply-demand events, selling by individual investors has run its course, reducing downside risk. Margin buying positions remain high at 0.49% of the Tokyo Stock Exchange Prime market's total market capitalization, near levels seen during past sharp declines, but balances within Matsui Securities have shrunk from a peak of about 540 billion yen to 510 billion yen. Daiki Takei of Resona Holdings said that with overseas investors continuing to sell futures on a net basis, bargain-hunting buying is likely to emerge. Shota Santo of Tokai Tokyo Intelligence Lab said the focus is on progress in unwinding margin buying positions ahead of US hyperscaler earnings and the FOMC meeting later this month.