https://t.co/2eCQIkHYs7 October 27, 2026 [Nikkei up 1,078 yen | This week’s hyper-scaler earnings | U.S. midterm elections on 11/3] (Market Broadcast [Daily Delivery]) Kuraoka Kei’s ASK1 #AISummary Sharp rebound of the Nikkei Average by 1,078 yen, led by semiconductor stocks—key points to watch going forward 🔳 Nikkei Average surges sharply after four trading days On October 27, the Nikkei Average rose 1,078 yen to 63,268 (+1.73%), rebounding from a recent decline of approximately 2,400 yen over the prior three trading days. Buying interest spread broadly, led by semiconductor-related stocks. 🔳 Trends in TOPIX and Growth Market TOPIX rose 24 points to 3,997 (+0.61%), while the Growth 250 gained 20 points to 784 (+2.7%). The Nikkei’s outperformance relative to TOPIX underscored a semiconductor-driven market rally. 🔳 U.S. AI and semiconductor stocks rebound Positive sentiment emerged following the filing of Anthropic’s IPO prospectus, reviving investor expectations for AI-related investments. The Philadelphia Semiconductor Index (SOX) rose 2.8%, triggering a similar rebound in Japan. 🔳 Four semiconductor-related stocks drove the Nikkei higher Advantest rose 8.98%, IBDEN rose 8.54%, SoftBank Group rose about 5%, and Tokyo Electron rose about 3%. These four stocks alone lifted the Nikkei Average by over 1,000 yen. 🔳 Semiconductor-related gains spread broadly Fujikura rose 2.8%, Resonac and KOKUSAI ELECTRIC each rose about 4.3%, and Samco rose 5.5%. Buying pressure concentrated on AI and semiconductor stocks that had recently declined sharply. 🔳 Semiconductor stocks surge in South Korea South Korea’s KOSPI index rose about 3%. Samsung Electronics gained 4.2%, and SK Hynix rose 5.17%, reflecting a global wave of buying in semiconductor-related equities. 🔳 Bank stocks also rose Sumitomo Mitsui Financial Group gained 2.3%, and Mitsubishi UFJ Financial Group rose about 2%. Buying interest extended to regional banks that had recently been sold off. 🔳 Growth market sees capital inflows into emerging stocks Layered rose about 17%, Compete rose 8.5%, and HumanMade gained over 9%. Buying interest expanded beyond semiconductors to other growth stocks, with investors targeting previously lagging quality names. 🔳 Ricoh reaches highest level in nearly 18 years Ricoh closed at 1,868.50 yen, up 39 yen, after reports that the Japanese government plans to allocate approximately ¥100 billion over four years to Ricoh and others to promote next-generation perovskite solar cells, fueling expectations for future earnings growth. 🔳 Nomura Securities upgrades IBDEN with bullish outlook Nomura Securities raised IBDEN’s target price from ¥9,500 to ¥10,000 and maintained its top-tier “Buy” rating. Supported by the broader rebound in AI and semiconductor stocks, IBDEN closed up 704 yen at ¥8,952. 🔳 Real estate stocks decline on profit-taking Mitsui Fudosan fell 3.6%, and Mitsubishi Estate dropped about 4%. As Japan’s 10-year government bond yield declined from around 3.1% to the low-2% range, profit-taking intensified among real estate stocks that had recently rallied. 🔳 Daiichi Sankyo plunges amid concerns over competitive drugs Daiichi Sankyo fell 8.1% after a U.S. pharmaceutical company announced positive clinical trial results for a new cancer drug candidate, raising fears of intensified competition with its flagship drug, Entresto. 🔳 Amano revises earnings forecast downward Amano lowered its consolidated net profit forecast for the fiscal year ending March 2027 from ¥17.6 billion to ¥14.5 billion, projecting a 28% year-over-year decline due to slower-than-expected recovery in its information systems business. Shares fell 298 yen to ¥3,776. 🔳 Selling pressure hits recently rising stocks Bandai Namco Holdings fell about 1%, and Honda declined about 0.5%. While recently strong stocks faced selling pressure, capital flowed into semiconductor-related stocks that had suffered steep declines earlier. 🔳 Sustainability of this rebound remains uncertain Analysts view this rally as a technical rebound following the recent plunge and do not consider it a fundamental shift in market sentiment. While further upside potential remains for semiconductor stocks, sustained gains will depend on upcoming catalysts. 🔳 Earnings reports from major U.S. tech firms are the key focus Upcoming earnings releases: Microsoft and Alphabet on October 28; Amazon on October 29. AI-related capital expenditure plans, cloud business growth, and profitability will be critical factors influencing future semiconductor stocks and global equity markets. ListItemIcon AI capital expenditure expansion and concerns over profitabilityThe expansion of AI equipment investment is a tailwind for semiconductor companies, but the deterioration in free cash flow due to massive investments could pressure the stock prices of major cloud providers. In particular, Alphabet’s earnings report is under close scrutiny. 🔳 The focus of AI-related stock selection may shift In the U.S., semiconductor-related stocks and AI service companies are moving in different directions. Moving forward, capital may increasingly flow not only toward semiconductors but also toward service companies expected to grow through AI adoption, as well as high-quality stocks that have lagged behind. 🔳 U.S. midterm elections and Middle East tensions remain concerns The U.S. midterm elections on November 3, Israel’s elections, and evolving dynamics in the Middle East are causing market caution. Policy changes resulting from election outcomes and geopolitical risks could impact stock prices. 🔳 Outlook toward year-end markets Analysts predict that if the U.S. midterm elections pass without major disruption, stock prices are likely to rise toward year-end. However, they caution that it is too early to conclude a shift to a bull market based solely on this rebound; investors should wait for earnings reports from major U.S. corporations and the election results for confirmation.