In trading five days ago, there are three points to note.

While identifying the resilience of high-tech stocks, target the dips.

Dentsu Inc. (2432): Its operating profit for March 24th decreased by 38.1% to 34.2 billion yen, and its forecast for March 25th is estimated to increase by 5.0% to 36.0 billion yen.

Materials to watch for in the morning: NTT, public phones, expected to fall below 100,000 units within the fiscal year.

While identifying the resilience of high-tech stocks, target the dips.

On the 5th, the Japanese stock market is expected to become a stalemate. On the US market, the major stock price indices rose, but the Nikkei 225 futures temporarily fell to 38290 yen in the night session. Although there was a movement to reduce the decline after the selling was over, the upward trend was suppressed around the 25-day moving average. Therefore, the effect of the rise in US stocks is expected to be limited.

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In addition, Nvidia's rise may support high-tech stocks with significant index impact, but the recent response of high-tech stocks has been sluggish, making it difficult to expect a high-tech-led rise. Although the government's preliminary policy of a solid policy has been revealed to include support for next-generation semiconductors, the response to semiconductor stocks seems limited, and investment in AI-related stocks may be held back.

In the foreign exchange market, the strong yen, with the exchange rate at around 154.80-90 yen per dollar, is likely to make it difficult to invest in export-related stocks. With the upcoming Federal Open Market Committee (FOMC) meeting in the United States and the Bank of Japan's monetary policy decision meeting, trading is expected to be centered around rebalancing, and actively pursuing trends may be held back.

As for investment, while assessing the strength of high-tech stocks, we aim to buy on dips. Also, today, Astroscale Holdings <186A> will be listed on the growth market, which should serve as a clue to stocks related to the space business. However, seeing the weak trend of the Growth 250 index, active investment in small and medium-sized stocks is likely to be limited.

Dentsu Inc. (2432): Its operating profit for March 24th decreased by 38.1% to 34.2 billion yen, and its forecast for March 25th is estimated to increase by 5.0% to 36.0 billion yen.

Dentsu (2433) announced the results for the fiscal year ending March 2024. Operating profit was 342.88 billion yen, a decrease of 38.1% compared to the previous year. Sales revenue was 1.5793 trillion yen (a 3.4% decrease compared to the previous year), and earnings were 9467.76 billion yen (a 4.5% decrease). Internet media and television outperformed the previous year, resulting in increased revenue for the entire media business.

Materials of concern in the morning session

・NY Dow rose (38711.29, +140.26)

・Nasdaq Composite rose (16857.05, +28.38)

Long-term US interest rates fell.

Expectations for inflation to ease in the US.

Request for improvement in corporate value by the Tokyo Stock Exchange.

- NTT (9432) public phones expected to fall below 100,000 units within the fiscal year; disaster-use preparations progress.

- Toyota Motor (7203) subject to on-site inspections, Minister of Land, Infrastructure, Transport and Tourism “handles strictly”.

- Hitachi (6501) and Microsoft jointly collaborate with generated AI, worth billions of dollars over three years.

- Omron (6645) accepts 1,206 applications for voluntary retirement in Japan.

- Oji Holdings (3861) utilises technology of Finnish subsidiary for eco-friendly packaging in Europe.

- IHI (7013) reports intermediate results to the Ministry of Land, Infrastructure, Transport and Tourism after falsifying fuel efficiency data for 4,905 engines.

- Dai-ichi Life Holdings (8750) signed a partnership with Marubeni for real estate development.

- Nissan Motor (7201) subsidiary, Jatco, to produce electric units in China for bicycles and motorcycles.

- Honda (7267) collaborates with Osaka University in transformation of automobile body construction and joining technology.

- Kubota (6326) conducts demonstration of biofuel production from rice straw in Ogata-mura, Akita Prefecture.

- Oval (7727) wins order to repair gas flow rate calibration facility from the National Institute of Advanced Industrial Science and Technology.

- Fujitsu (6702) focuses on AI technology integration and new value across various fields such as quantum computing.

- SoftBank Group (9984) successfully demonstrates the use of the 300 GHz band “Terahertz radio” technology for outdoor moving vehicles to communicate.

Mitsubishi Electric <6503> provides GaN power amplifier modules for 5G base stations.

Sanken Electric <6707> mass-produces fan motor drive ICs with excellent quietness through sine wave drive.

Toppan <7911> launches automatic simultaneous interpretation service for meetings.

CloudW's <3900> group company provides a risk management service specialized in AI skills.

Sumitomo Chemical <4005> creates new business in South Korea, expands material development for post-semiconductor processes and generates AI.

Mitsui Chemical <4183> enhances growth areas, accelerates structural reforms related to petrochemicals.

Toyo's <4042> high-functioning materials lead to growth. Petrochemicals provide a way for decarbonization.

Tokai Carbon <5310> aggressively invests in isotropic graphite for high-level semiconductors.

AICA Kogyo <4206> water-based abrasive-resistant flooring reduces human and environmental impact.

☆ Schedule of events in the morning session

8:30 cash salary total for April (year-on-year financial estimates: +1.8%, March: +1.0%)

10:30 Australian GDP for Q1 (year-on-year financial estimates: +1.2%, Q4: +1.5%)

10:45 China's Caixin Services PMI for May (estimates: 52.5, April: 52.5)