I would like to pay attention to the following 3 points in the late-day transaction on 5/1.

・The Nikkei Average fell for the first time in 3 days, and the lower price was limited even with a soft trend due to the drastic depreciation of US stocks

・The dollar and yen were small and surfaced again in the latter half of 157 yen

・First Rate ＜9983＞ is the top contributor to price drops, and SoftBank G ＜9984＞ is in the same 2nd place

■The Nikkei Average fell for the first time in 3 days, and in response to a drastic depreciation in US stocks, the lower price was limited even with a soft trend

The Nikkei Average fell for the first time in 3 days. The forward market transaction was closed at 38189.54 yen (estimated turnover of 880 million shares), which was 216.12 yen lower (-0.56%) compared to the previous day.

The US stock market fell on April 30. The Dow average closed at 37815.92 dollars, which depreciated 570.17 dollars (-1.49%), the NASDAQ fell 325.26 points (-2.04%) at 15657.82, and the S&P 500 closed at 5035.69, which was 80.48 points lower (-1.57%). Since the employment cost index for the fiscal year ending January to 3 grew higher than expected, it was sold due to a retreat in expectations of interest rate cuts, and then fell after getting close. Wage inflation is deep-seated, and the market price fell due to concerns that high inflation would be prolonged longer than expected, and the rise in long-term interest rates was disgusted. Since the April Chicago Purchasing Department Association Business Climate Index and Consumer Confidence Index, which were announced later, fell far below expectations, concerns about stagflation were also rekindled, leading to further sales pressure. Towards the end of the game, sales that were wary of the hawkish faction of the US Federal Open Market Committee (FOMC) also intensified, and the decline widened and ended.

In response to the drastic depreciation of US stocks, the Tokyo market began trading with a selling advantage. After the Nikkei Average started below the 75-day moving average level of 38272 yen, there was a fight at 38100 yen. Searches centered on stocks announcing financial results continue, and indices such as the Nikkei Average and TOPIX lack a sense of direction. In the US tonight, aggressive trading was refrained from due to the fact that economic indicators such as those related to US employment and FOMC announcements are ahead, and it seems that lower prices are also limited.

In stocks adopted by the Nikkei Average, profitability deteriorated in Saudi Arabia, and JGC HD (1963), which was announced as a deficit conversion forecast for the previous fiscal year, plummeted, and MOL ＜9104＞, which was bought after financial results were announced the day before, fell, and the increase from the previous day plummeted. Also, Tobu Railway (9001) and Nomura (8604) were also sold in connection with financial results. Among stocks other than those adopted by the Nikkei Average, Nippon Dispensing (3341), Heiwa Real Estate (8803), and Tokyo Electron Devices (2760) declined due to disgust with financial results.

Meanwhile, operating profit for the January-March fiscal year was 2.8 times higher than the same period last year, which exceeded market expectations, so Lasertech (6920) rose drastically. Also, JR West ＜9021＞, JR East ＜9020＞, Shiseido ＜4911＞, Advantest ＜6857＞, Sumitomo Chemical ＜4005＞, and Mitsubishi Electric ＜6503＞ have risen. Electric power stocks such as Kyushu Electric Power ＜9508＞, Hokuriku Electric Power ＜9505＞, and Tohoku Electric Power ＜9506＞ were bought in stocks other than those adopted by the Nikkei Average.

By industry, shipping, petroleum/coal products, glass/earth and stone products, securities/commodity futures trading, mining, etc. declined, while only the three sectors of electricity and gas, land transportation, and fisheries/agriculture and forestry rose.

The exchange rate was developed with an awareness of the 157 yen 80 yen range and the 158 yen range per dollar. Market participants estimated from the Bank of Japan's current account balance data released yesterday, and it is observed that a yen purchase intervention on the scale of 5 trillion yen was carried out, but the depreciation of over 3 yen and the appreciation of the dollar has already progressed from the 154 yen 50 yen range set on the 29th. There is also a view that Fed Chairman Powell will make “hawkish” comments at tonight's FOMC, and there is a possibility that US 10-year bond yields will strengthen the upward trend. It is not in a position where Japanese stocks can be bought honestly due to the depreciation of the yen exchange rate, but it seems that doubts that yen buying intervention by the government and the Bank of Japan may re-enter are holding back from buying Japanese stocks. The Nikkei Average will continue to clash at the 38100 yen level in the aftermath.

■The dollar and yen were small and surfaced again in the latter half of 157 yen

There was a slight price movement of the dollar and yen in the Tokyo market on the morning of the 1st, and the price rose from 157 yen 66 yen to 157 yen 89 yen. Looking at the continuation of tight policies by the US Federal Reserve (Fed), the trend of high US interest rates and appreciation of the dollar. The dollar once again swung on an upward trend due to Japan's exchange intervention.

The trading range up to this point has been from 157 yen 66 yen to 157 yen 89 sen for the dollar and yen, 168 yen 13 yen to 168 yen 37 sen for the euro and yen, and 1.0657 dollars to 1.0672 dollars for the euro dollar.

■Backstage check stocks

・3 stocks, such as Hove ＜1382＞ and data section ＜3905＞, etc., are stop-high

*Includes temporary stop height (sign value)

・First Rate ＜9983＞ is the top contributor to price drops, and SoftBank G ＜9984＞ is in the same 2nd place

■Economic indicators and statements from key figures

[Economic indicators]

・NZ · Unemployment rate for the January-March period: 4.3% (forecast: 4.2%, October-12:4.0%)

・NZ · January-March employment increase or decrease: -0.2% compared to previous fiscal year (forecast: +0.3%, 10-12 fiscal year: +0.4%)

[Remarks by VIPs]

・Deputy Governor of the Reserve Bank of NZ Hawkesby

“High global inflation continues to be an important risk to financial stability”

“Employment statistics confirm the trend of a cooling labor market”

＜Domestic＞

・Nothing in particular

＜Overseas＞

・Nothing in particular