I would like to pay attention to the following 3 points in the late-day transaction on the 28th.
・The Nikkei Average fell slightly and continued to move slightly due to material difficulties
・The dollar and yen are weak, and be aware of sales near the milestone
・East Elec ＜8035＞ is the top contributor to price drops, and Lasertech ＜6920＞ is in the same 2nd place
■The Nikkei Average fell slightly and continued to move slightly due to clues and material difficulties
The Nikkei Average fell slightly. The forward market transaction was closed at 38783.27 yen (estimated volume of 750 million shares), which was 116.75 yen lower (-0.30%) than the previous day.
The UK market and US market on the 27th are closed due to public holidays. In the exchange market, exchange transactions for major currencies continued to be weak, but the dollar remained somewhat steady. The dollar and yen were sold up to 156 yen 71 yen, then rebounded to 156 yen 91 yen, and the transaction ended at 156 yen 88 yen.
In response to the closure of the US market last night, the Tokyo market began trading with small movements. Similar to the day before, aggressive trading was refrained due to lack of clue materials, and the Nikkei Average rose to around 39,000 yen at 1 o'clock in the morning, but the upper price was heavy, and after one round of buying, there was a fight at the previous day's closing price level. The trading price on the front market Prime Market fell below 2 trillion yen every day.
Among the stocks adopted by the Nikkei Average, some semiconductors such as Lasertech ＜6920＞, Screen HD ＜7735＞, Renesas Electronics ＜6723＞, Tokyo Electron ＜8035＞, and Advantest ＜6857＞ have declined. Other than this, there aren't even Sharp ＜6753＞, Daiichi Sankyo ＜4568＞, and Fujitsu ＜6702＞.
The rise in copper prices was taken as a material, and parts related to electric wires such as Furukawa Electric ＜5801＞, Sumitomo Electric ＜5802＞, and Fujikura ＜5803＞ were bought. Also, since Tohoku Electric Power Company ＜9506＞ announced that safety measures construction for Onagawa Nuclear Power Plant Unit 2 has been completed, it became a stimulus material, and electric power stocks such as TEPCO HD ＜9501＞, Chubu Electric Power ＜9502＞, and Kansai Electric Power ＜9503＞ also rose. In addition, Teijin (3401), Toray (3402), and Mitsui Chemicals (4183) were purchased.
By industry, while metal products, pharmaceuticals, other products, machinery, foodstuffs, etc. declined, the electric/gas industry, nonferrous metals, shipping, textile products, petroleum and coal products, etc. rose.
Remarkable movements in the exchange rate of around 156 yen 80 yen per dollar have not been observed. In the bond market, new 10-year government bond yields, which are indicators of long-term interest rates, temporarily rose to 1.0315%, and speculation about early monetary policy normalization by the Bank of Japan continues to be high. There is also a possibility that the wait-and-see mood will intensify until the Bank of Japan monetary policy meeting to be held on 6/13-14. The Nikkei Average will continue to move slightly at the previous day's closing price level.
■The dollar and yen are weak, and be aware of sales near the milestone
The dollar and yen were in a soft position in the Tokyo market on the morning of the 28th, and the price dropped from 156 yen 95 yen to 156 yen 68 yen. The trend in US 10-year bond yields is weak, and it is slightly prone to dollar sales. Also, yen buying intensified due to a sense of caution against Japan's exchange rate intervention and weakness in the Nikkei Stock Average, and the dollar depreciated.
The trading range up to this point is 156 yen 68 yen to 156 yen 95 sen for the dollar and yen, 170 yen 30 yen to 170 yen 50 sen for the euro and yen, and 1.0855 to 1.0876 dollars for the euro dollar.
■Backstage check stocks
・5 stocks, such as AI ＜4388＞ and IZ＜5242＞, etc., are stop-high
*Includes temporary stop height (sign value)
・East Elec ＜8035＞ is the top contributor to price drops, and Lasertech ＜6920＞ is in the same 2nd place
■Economic indicators and statements from key figures
[Economic indicators]
・Australian retail sales in April: +0.1% compared to the previous month (forecast: +0.2%, March: -0.4%)
[Remarks by VIPs]
・Finance Minister Suzuki
“We will refrain from responding to exchange intervention, including whether or not it has been implemented”
“We will accurately analyze the impact of exchange rates on the Japanese economy and people's lives and respond appropriately”
＜Domestic＞
・ 14:00 Bank of Japan · Index to capture underlying inflation
＜Overseas＞
・ 13:55 US Federal Reserve Director Bowman and others participated in an event hosted by the Bank of Japan