3 points you should pay attention to in the back room ~ refrain from aggressive trading in the first round of settlement

Fisco Japan ·  May 17 11:20

I would like to pay attention to the following 3 points in the late-day transaction on the 17th.

・The Nikkei Average fell for the first time in 4 days, and aggressive trading was refrained in the financial results round

・The development of the dollar and yen is firmly aiming for 156 yen

・East Elec <8035> is the top contributor to price drops, and Fast Rite <9983> is in the same 2nd place

■The Nikkei Average fell for the first time in 4 days, and aggressive trading was refrained in the financial results round

The Nikkei Average fell for the first time in 4 days. The forward market transaction was closed at 38782.08 yen (estimated turnover of 920 million shares), which was 138.18 yen lower (-0.36%) compared to the previous day.

The US stock market fell on the 16th. The Dow average closed at 39869.38 dollars (-0.10%), the NASDAQ depreciated 44.07 points (-0.26%) at 16698.32, and the S&P 500 fell 11.05 points (-0.21%) at 5297.10. Purchases in response to expectations of early interest rate cuts continued, and after getting close, they rose. The Dow achieved the 40,000 dollar range for the first time, but after that, it was sold at profit due to a sense of accomplishment at a high price, and growth was sluggish. Despite the April Consumer Price Index (CPI) results, US Federal Reserve (Fed) senior officials still reiterated their cautious stance in support of maintaining high interest rates for the time being, so high-tech turned to sales in response to an increase in long-term interest rates. Towards the end of the game, the Dow was unable to maintain the positive zone, and the market price fell and ended.

In response to the fall in US stocks, the Tokyo market began trading with a selling advantage. After the Nikkei Average started with a drop of over 300 yen, the decline gradually narrowed. Financial results announcements went round, and while there was a lack of prominent trading materials, it seems that aggressive trading was refrained after the reaction against the previous day's rise went round. Meanwhile, TOPIX closed ahead of time in the positive zone compared to the previous day, and the market price contrasted with yesterday.

Among stocks adopted by the Nikkei Average, Sumitomo Pharma <4506> continued to have a sales advantage and approached year-to-date lows, and Tokyo Electron <8035> declined due to a reaction against yesterday's rise. In addition, Resonac <4004>, Konica Minolta <4902>, Ricoh <7752>, Nikon <7731>, and Dentsu Group <4324> were sold.

Meanwhile, Japan Steel Works (5631) has risen drastically since the outlook for the defense business to expand was shown at financial results briefings, and recent interest rate increases have also been added, and Sumitomo Mitsui (8316) continued to rise for 7 days. In addition, Renesas Electronics (6723), Nidec (6594), Murata (6981), Toyota's own (7203), and Takashimaya (8233) were purchased.

By industry, while precision instruments, other products, chemicals, non-ferrous metals, construction industries, etc. declined, banking, electric/gas industries, transportation equipment, steel, petroleum and coal products, etc. rose.

The exchange rate is 155 yen 80 yen per dollar, and the depreciation of the yen is progressing by about 40 yen and the appreciation of the dollar is progressing by about 40 yen. At around 10:00, a government bond purchase operation (open market operation) carried out by the Bank of Japan was notified. There was speculation in the market that government bond purchases would be further reduced, but since the planned purchase amount was made the same as last time, the trend of selling yen and buying dollars intensified after notification from the Bank of Japan. The current depreciation of the yen is a solid factor for automobile-related brands such as Toyota itself, and TOPIX has an advantage. It depends on Tokyo Electron, but if the depreciation of the yen intensifies one step further, there is a possibility that the Nikkei Average will sharply reduce the decline in the aftermath.

■The development of the dollar and yen firmly aiming for 156 yen

There was a steady price movement of the dollar and yen in the Tokyo market on the morning of the 17th, and the price was rounded up from 155 yen 34 yen to 155 yen 92 yen. Due to the steady trend in 10-year US bond yields, it is easy to shift towards buying dollars, and the development aims for 156 yen. Meanwhile, the decline in the Nikkei Stock Average has narrowed, and yen purchases have receded.

The trading range up to this point is 155 yen 34 yen to 155 yen 92 sen for the dollar and yen, 168 yen 78 yen to 169 yen 28 sen for the euro and yen, and 1.0854 to 1.0868 dollars for the euro dollar.

■Backstage check stocks

・5 stocks, such as Geolocation Technology <4018> and parentheses <4166>, etc., have high stops

*Includes temporary stop height (sign value)

・East Elec <8035> is the top contributor to price drops, and Fast Rite <9983> is in the same 2nd place

■Economic indicators and statements from key figures

[Economic indicators]

・Mid-April industrial production: +6.7% year-on-year (forecast: +5.5%, March: +4.5%)

・Mid-April retail sales: +2.3% year-on-year (forecast: +3.7%, March: +3.1%)

[Remarks by VIPs]

・Bank of Japan Governor Ueda

“I don't think we will dispose of our ETFs right away”


・Nothing in particular


・Nothing in particular

The translation is provided by third-party software.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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