[Today's Market] May 8 — This is the strength of the Tokyo market; even as the indices fall, funds keep moving

In the end, semiconductors were purchased today as well.

The Tokyo market on the 8th opened with a soft tone from the start of trading.

The Nikkei Stock Average finished at 62,713 yen, down 120 yen from the previous day.

In the U.S. market the previous day, AMD, which surged on the trigger of its results the day before yesterday, pulled back.

AdditionallyAmazon and other major tech stocks also experienced selling pressure.

Moreover, with the outlook for Iran's situation remaining opaque,
the Dow Jones Industrial Average・the Nasdaq Compositeboth closed lower.

Following that, the Tokyo market also saw selling bias from the morning.

Since the Nikkei average had risen over 3,300 yen the previous day, overheating in semiconductor stocks had spread.

Furthermore, portfolio adjustments due to weekend factors piled up, making profit-taking movements dominant.

However, funds flowing into semiconductors have not disappeared yet.

Advanced Micro Devices, Tokyo Electron, and Kioxia finished in positive territory.

There remains continued demand to buy major semiconductor stocks.

Also today, the earnings announcements from major companies are in full swing.

In the afternoon
Toyota Motor Corp. reported a profit decline and turned soft.

On the other hand, Sony Group Corp. posted record profits, announced share buybacks and higher dividends, but was sold off toward the close.

Furthermore,NTTalso posted lackluster results and fell.

Market reactions to earnings have become quite sensitive.

Meanwhile, what stood out in today’s market was the strength of growth stocks.

The Growth 250 Index rose 4.7%.

Even as the index was weak, individual stock picking became quite strong.

Among them,

linked to AI semiconductor demand,PowerX ended at the upper limit of its price move.

Furthermoreadvertising-tech firms also hit the upper limit for two consecutive days, boosted by topics related to the recovery of crypto assets.

QD Lasercontinued to show strong momentum.

◆ Market Summary for Today

・Nikkei average fell to 62,713 yen, down 120 yen
・U.S. markets were soft due to tech selling and Middle East concerns
・Tokyo market also favored profit-taking
・Continued funds inflow into semiconductor majors
・Reactions to major company earnings were sensitive
・Growth 250 Index rose 4.7%
・Funds flowed more rapidly into AI and thematic stocks

◆ Investor Notes

Even when the index is weak, individual stocks are strong.

This trend has become clearer.

From the previously Nikkei-led, semiconductors-centrically market, funds are gradually moving toward individual stocks.

That is the impression I have.

In particular, the strength of growth stocks cannot be ignored.

For theme-based stocks, funds are entering quite aggressively.

As we approach the weekend, will we return to a semiconductor-led market?

Or will stock-picking among individual equities become even stronger?

From now on, it may be more important to watch “where the funds are flowing” than the index itself.

This seems to be a key point to monitor.