[Sumitomo Mitsui: Nikkei 225 Index at a "Quite Cheap" Level, Returning to Medium- to Long-Term Uptrend] A report from Sumitomo Mitsui DS Asset Management points out that the Nikkei 225 index experienced its third-largest single-day drop in history on

2026-11-11

[Sumitomo Mitsui: Nikkei 225 Index at a "Quite Cheap" Level, Returning to Medium- to Long-Term Uptrend] A report from Sumitomo Mitsui DS Asset Management points out that the Nikkei 225 index experienced its third-largest single-day drop in history on November 6th, with the Relative Strength Index (RSI) falling to 25.9%, breaking below the 30% level considered oversold. In the following three trading days, the Nikkei 225 index rose consecutively, returning above 61,000 points today. Observing the Nikkei average's expected earnings per share (EPS) and the expected price-to-earnings ratio (PER) calculated by dividing the stock price by the expected EPS, we can see that: against the backdrop of continued disclosure of domestic corporate financial reports, EPS remains at a relatively high level, while PER is declining rapidly. Assuming a slowdown in demand or investment related to artificial intelligence (AI), the risk of a downward correction in EPS will increase; however, at the current point in time, due to the rapid one-off stock price adjustment, PER can be considered at a quite cheap level. Although there are still short-term downside concerns for the Nikkei 225 index, the stock price is at a quite cheap level, and there is a high probability that it will gradually move out of the oversold zone and return to a medium- to long-term uptrend. Going forward, if daily reports on the performance of AI and semiconductor-related companies, quarterly financial reports, and information on strengthened data center regulations can alleviate market concerns about the sustainability of AI investment and financing, then short-term downside concerns will be eliminated.

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2026-11-11

Northeast Securities macro chief Liao Bo at the 2026 Shanghai Total Volume Forum said recent market moves reflect liquidity rebalancing and that liquidity may become the dominant driver of asset pricing. He expects equities to converge toward intrins

2026-11-11

Asian Stocks 1. The Shanghai Composite Index closed up 2.93 points, or 0.08%, at 3663.72 on Tuesday, November 10th. 2. The Shenzhen Component Index closed up 96.05 points, or 0.86%, at 11241.54 on Tuesday, November 10th. 3. The CSI 300 Index close