The Nikkei average continues to fall. It closed the morning session at 38,527.60 yen (with an approximate volume of 860 million shares traded), down 309.86 yen (-0.80%) from the previous day.
The U.S. stock market rose on the 4th. The Dow Jones Industrial Average ended the session at 38,711.29 dollars, up 140.26 dollars (+0.36%), the Nasdaq rose 28.38 points (+0.17%) to 16,857.05, and the S&P 500 rose 7.94 points (+0.15%) to 5,291.34. After some fluctuations due to uncertainty about the economy and interest rates, the market turned upward as the JOLT job openings report released later was below expectations, rekindling hopes for a rate cut in September. The Nasdaq saw a mix of profit-taking selling and buying due to the decline in interest rates, but it rose as Nvidia in the semiconductor industry rose. The market extended its gains and closed higher.
Although U.S. stocks rose, the yen's appreciation and other factors were a drag on the Tokyo market, which opened with a selling bias. While the Nikkei fell as low as 38,343.98 yen at one point, the decline was partly supported by rising real estate stocks, which were buoyed by the decline in interest rates. Both Japan and the U.S. are now under the influence of fluctuations in interest rates.
Among the Nikkei average constituent stocks, Recruit Holdings <6098>, and Mitsukoshi-Isetan <3099> were pushed down due to profit-taking selling, while Kawasaki Kisen <9107>, Kawasaki Heavy Industries <7012> and Mitsubishi Electric <6503> were sold. In addition, some semiconductor-related stocks such as SUMCO <3436> and SCREEN Holdings <7735> were also sold off.
Meanwhile, due to the temporary appreciation of the yen and depreciation of the dollar to around 154 yen, retail-related stocks such as Nichirei <2871>, Nitori Holdings <9843>, and 7&i HD <3382> rose. In addition, real estate stocks such as Mitsui Fudosan <8801>, Mitsubishi Estate <8802>, Sumitomo Realty & Development <8830>, and Tokyu Fudosan HD <3289> were also bought due to the decrease in Japanese and US interest rates.
Insurance, marine transportation, mining, nonferrous metals, and iron & steel declined, while real estate, pharmaceuticals, electric & gas, precision instruments, and land transportation rose by industry.
The Philadelphia Semiconductor Stock Index (SOX Index) is not showing much adjustment, but the prices of semiconductor stocks such as Tokyo Electron <8035> and Advantest <6857> are not doing well due to the cessation of foreign buying. In this situation where there are few factors to attract foreign buyers, if semiconductor stocks, which are also driving forces, remain heavy, the Nikkei Average is likely to continue to range between 38,000 yen and 39,000 yen. The Nikkei Average is below the 25-day moving average of 38,576 yen, but the decline has narrowed, so the afternoon is expected to be a stalemate across the 25-day moving average.