Three points to pay attention to during the trading session 7 days ago.
Aim for dips due to expectations of interest rate cuts in the USA.
Ain HD, operating profit of 24/4 increased by 27.7% to 20.4 billion yen, 25/4 expectation is a decrease of 12.9% to 17.8 billion yen.
Key materials for the morning session: Amada, Indian-made components for sheet metal processing machines, reducing procurement costs by 40%.
Aim for dips due to expectations of interest rate cuts in the USA.
The Japanese stock market on the 7th is expected to experience a strong sense of deadlock. On the 6th, the US market saw the NY Dow rise by 78 dollars and the Nasdaq fall by 14 points. Buying was the leading trend due to new weekly jobless claims exceeding expectations and expectations for a rate cut. However, with the announcement of US employment statistics on the 7th, profit-taking selling has become a way of restraining the upside. The Chicago Nikkei 225 futures were down 125 yen from Osaka to 38,635 yen. The yen is trading around 155.50 yen to the dollar.
It is likely to start with a slightly selling trend from adjusting to the Chicago futures market. In the US market, Nvidia is being pushed down by profit-taking after hitting a high, and index-impacting values such as Tokyo Electron <8035>, Advantest <6857>, and Softbank G <9984> for leading the Nikkei average stock price on the previous day are also likely to receive profit-taking selling. While the policy interest rate is expected to be kept unchanged at the FOMC meeting of the US Federal Open Market Committee and the Bank of Japan's interest rate decision-making meeting next week, the ECB cut rates ahead of the US, making it easier to expect rate cuts in the US later this year.
Therefore, movements to sell are unlikely to take place easily. In addition to the downward trend of long-term US interest rates due to expectations for a US rate cut, it is an area that is prone to fluctuations in the foreign exchange market with a strong tendency toward the appreciation of the yen. It is expected to be difficult to handle export-related products, and a relative development of the Nikkei average type is expected. Therefore, while high-tech stocks are likely to take profit first, if the subsequent stability is recognized, there is a possibility that buying will occur from rebalancing movements.
Yesterday's Nikkei average stock price was conscious of the 75-day moving average as a resistance line, but a firmness was seen at the 25-day moving average. Therefore, while selling is likely to be the leading trend, it is desirable to respond with buying on the dip at the 25-day moving average level. In addition to buying on dips in high-tech stocks, short-term funds are likely to be directed to individual stocks with material prospects. On the other hand, although it is a growth 250 index, which has been in a weak tone, Astro Scale <186A> also has weak movements, making it difficult for funds to flow into small and mid-cap stocks.
Ain HD, operating profit of 24/4 increased by 27.7% to 20.4 billion yen, 25/4 expectation is a decrease of 12.9% to 17.8 billion yen.
Ain HD <9627>'s performance for the fiscal year ending in April 2024 saw sales increase by 11.5% YoY to 399.824 billion yen, and operating profit increase by 27.7% YoY to 20.432 billion yen. The average prescription price has risen due to an increase in high-priced pharmaceutical prescriptions, including treatments for COVID-19. In addition, outpatient visits have increased due to the relaxation of restrictions on COVID-19 as it has been categorized as a Category 5 infectious disease, and prescription volume has also increased due to improved services such as enhanced functions as a regular pharmacist/pharmacy and shorter waiting times. For the fiscal year ending in April 2025, planned sales are 415 billion yen, a 3.8% increase YoY, and operating profit is 17.8 billion yen, a decrease of 12.9% YoY.
Materials of concern in the morning session
The Nikkei average rose (38,703.51, + 213.34).
The NY Dow rose (38,886.17, + 78.84)
The VIX index fell (12.58, -0.05)
US crude oil futures rose (75.55, +1.48)
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
Amada <6113>, reduces procurement costs by 40% with Indian-made components for sheet metal processing machines.
Tomita <8147> makes its first M&A entry into machine maintenance.
Panasonic HD <6752> Panasonic Energy increases production of car batteries in the USA and expands supply to Japan.
KDDI <9433> JCOM's new medium-term management plan aims for sales revenue of over one trillion yen in fiscal year 2027 and a fiber-to-the-home (FTTH) penetration rate of 50%.
Suzuki <7269> subjected to inspections by the Ministry of Land, Infrastructure, Transport and Tourism due to irregularities in the cargo specifications of the "Alto" light vehicle.
Sekisui House <1928> plans to supply 20,000 units in the USA for the fiscal year ending in January 2032, increasing overseas ratio to 45%.
Rohto Pharmaceutical <4527> acquires a 51% stake in an Austrian pharmaceutical company to expand its eyedrop business in Europe.
Mitsui & Co <8031> participates in a fund for carbon-neutral ships.
Seven Bank <8410> installs ATMs at 2,500 Seven-Eleven stores in Malaysia.
Yushiro Chemical Industry <6393> invests in production expansion in India for gear pumps and other products, increasing capacity by 1.5 times.
SPK <7466> aims for growth investments of 7 billion yen in its new five year-plan and expand into Central and South America.
Lixil <7525> aims for proprietary products to account for 40% of sales by the fiscal year ending in March 2027, accelerating development at new bases.
Yamashita Health Care HD <9265> acquires Microsonic and gains ownership of the technology involved in its medical ultrasound devices.
Toyo Tech <9686> acquires Kansai Unite and enters event security
Saxa HD <6675> aims for a revenue of 50 billion yen in FY26 by supporting DX for SMEs and midsize companies in its new medium-term plan.
Suzuki <7269> new car sales in May: "Spacia" takes the top spot for the first time, with "N-BOX" dropping out of the top spot.
Honda <7267> to produce FCVs in the US in order to promote decarbonization, and plans to release them in Japan and the US by the end of the year.
Amada <6113> expands production of automation equipment for sheet metal processing machines in Finland.
AeroEdge <7409> establishes a new factory for manufacturing new area components internally.
Sumitomo Electric <5802> acquires a German electric wire manufacturer and produces high voltage direct current cables.
Hirose Electric <6806> completes its new Koriyama plant and increases production of connectors.
Daido Steel <5471> plans to invest 150 billion yen in facilities over the next three years in its new medium-term plan.
☆ Schedule of events in the morning session
08:30 April household expenditure (year-on-year forecast: +0.5%, March: -1.2%)
Not applicable.