https://t.co/BjVSerezwy October 19, 2026 [Nikkei Average Down 407 Yen; Fell Over 1,492 Yen in Morning, Recovered 1,000 Yen by Close] (Market Commentary [Daily Delivery]) Kuraoka Kei's ASK1 #AISummary Nikkei Average Down 407 Yen to 64,916; AI and Semiconductor Stocks Plunge Sharply but Recover Significantly from Lows 🔳 Nikkei Average closed down 407 yen at 64,916 On October 19, the Tokyo stock market closed with the Nikkei Average down 407 yen from the previous day at 64,916. It initially dropped over 1,400 yen to a low of 63,831, but recovered substantially during the afternoon session. 🔳 TOPIX edged up slightly; Growth Market declined TOPIX closed at 4,067 points, up 1.48 points (+0.04%) from the previous day. The Growth 250 Index fell approximately 1.57%. Trading volume on the Prime Market totaled approximately ¥6.7 trillion; the Growth Market reached approximately ¥210 billion. 🔳 U.S. markets saw sharp declines in AI-related stocks Over the previous weekend, the U.S. market saw the Dow Jones fall $175 and the NASDAQ drop 572 points. Concerns intensified over massive investments and funding burdens in AI-related companies, triggering broad selling pressure across growth stocks. 🔳 CoreWeave’s plunge reignites caution over AI investment CoreWeave, a cloud provider focused on AI, dropped about 12%. Selling pressure spread to other neo-cloud firms with heavy funding burdens such as Nebius. Analysts pointed to concerns over creditworthiness and cash flow as key drivers behind the price decline. 🔳 Major U.S. tech stocks also declined Meta fell 3.7%, Alphabet dropped 2.4%, and Amazon declined 1.8%. CrowdStrike, Palo Alto Networks, and Palantir each fell over 7%, indicating broader selling across growth stocks—not just AI-related names. 🔳 Selling extended to semiconductor and memory stocks Micron Technology, SK hynix, Western Digital, AMD, and Intel all declined. Concerns over AI investment spilled over into semiconductor and storage-related sectors, with selling pressure also affecting Japanese semiconductor stocks. 🔳 Capital shifted to defensive stocks in the U.S. As funds exited AI-related stocks, defensive names such as P&G, Walmart, and Coca-Cola saw buying interest. Investors rotated from high-growth equities toward stable-income companies. 🔳 Nikkei Average down nearly 10% from peak The Nikkei Average fell approximately 9.8% from its October 6 peak to its October 19 low. Analysts suggested that the sharp decline created a bargain sentiment that triggered a rebound. 🔳 Japanese semiconductor stocks rebounded from lows Advantest closed at ¥34,450, down ¥80; Tokyo Electron also declined but both rebounded from their lows. Kioxia rose ¥225 to ¥13,600, showing strong recovery among semiconductor-related stocks. 人气半导体股从高点下跌20%至35% 从10月高点至19日低点，富士克拉下跌约29%，铠侠下跌约35%，Advantest下跌约22%，东京电子下跌约20%。分析认为，急跌带来的估值吸引力引发了反弹。 🔳 Oil prices rise, boosting oil and resource stocks U.S. WTI crude oil futures surpassed $100 for the first time in about a month, reaching the $101 range. INPEX and ENEOS rose; ENEOS gained approximately 2.2%. Oil and coal-related sectors stood out among industry groups with notable gains. 🔳 Funds flowed into shipping, utilities, and real estate stocks Shipping stocks, Chubu Electric Power, Mitsui Fudosan, and Mitsubishi Estate all rose. Similar to U.S. markets, capital rotated away from AI and semiconductors into other sectors. 🔳 Non-semiconductor quality stocks held firm Recruit rose ¥355 to ¥18,775, setting a new closing high. Baycurrent gained approximately 5.3%, and SHIFT rose about 5.48%. Analysts noted rising valuation for companies leveraging AI to drive growth. 🔳 Restaurant stocks surged sharply Anticipation of government measures to stimulate dining demand acted as a catalyst. Policies such as premium meal vouchers—aimed at mitigating concerns over reduced dining out due to reduced consumption tax on food—gained attention. 🔳 Major restaurant chains saw buying interest Sukiya rose approximately 7.8%. FOOD & LIFE COMPANIES (operator of Sushiro) gained about 4.5%, Machida Shōten’s Gift Holdings rose about 5.17%, and Zensho increased about 3.34%. Monogatari Corporation also hit a new high. 🔳 Individual catalyst: Suzukken rose Suzukken rose ¥72 to ¥2,774 after Nomura Securities upgraded its investment rating. Target price was raised from ¥2,785 to ¥3,550 on expectations of improved profitability from pharmaceutical business growth and structural reforms. 🔳 CKD declined on concerns over upcoming share offeringCKD entered its share offering pricing period and was sold off amid concerns over worsening supply and demand conditions. The stock closed at ¥4,935, down ¥95. 🔳 Caution advised on sustained rebound in semiconductor stocks Although semiconductor-related stocks rebounded significantly from their lows, it cannot yet be confirmed that the downward trend has been reversed. Analysts cautioned against assuming a reversal based solely on long lower shadows and emphasized the need to monitor future price movements. ListItemIcon This week, focus on U.S. tech earnings Earnings are scheduled for Tesla and Meta on the 21st, followed by Texas Instruments and Western Digital on the 22nd. In Japan, Disco will also report earnings on the 22nd, drawing attention to the performance and market reaction of semiconductor-related companies. ListItemIcon Strong earnings do not guarantee stock price gains While AI-related companies are highly anticipated for earnings growth, concerns persist over the burdens of capital investment and fundraising. Moving forward, market reactions to investment pressures and future outlooks will be just as important as the earnings figures themselves. ListItemIcon Future focus: Stabilization of AI stocks and capital flow Analysts stressed the need to carefully assess whether AI and semiconductor stocks can resume an upward trend. Attention is also being paid to other high-quality stocks outside AI—such as those in dining, resources, real estate, and services—that are currently attracting capital inflows.