The Nikkei average fell. It ended the morning session at 38,661.04 yen (approx. 650 million shares traded), down 42.47 yen (-0.11%) compared to the previous day.
The US stock market was mixed on the 6th. The Dow Jones rose 78.84 dollars (+0.20%) to 38,886.17 dollars, the Nasdaq fell 14.78 points (-0.09%) to 17,173.12, and the S&P 500 fell 1.07 points (-0.02%) to 5,352.96. There was continued buying due to expectations of a rate cut following higher-than-expected weekly new unemployment insurance claims, and the market rose after the opening. With caution ahead of employment statistics released on the 7th, profit-taking selling put a cap on the rally, but the Dow remained stable. The Nasdaq remained sluggish throughout the day, weighed down by Nvidia. The market ended mixed.
Although the US stock market was mixed, the Tokyo market started out slightly on the selling side due to weakness in the Philadelphia Semiconductor Stock Index (SOX Index). The Nikkei average started in the minus zone compared to the previous day, but did not necessarily move downward after a temporary pullback. With a strong wait-and-see attitude before the release of US employment statistics, the market traded in a tight range around 38,600 yen.
Among the Nikkei average constituent stocks, Shionogi & Co. (4507) fell sharply due to disappointment with the results of a Phase 2 trial of an anti-obesity drug, and Mitsubishi UFJ (8306) was also sold off after reports that the Securities and Exchange Surveillance Commission is considering recommending disciplinary action. Additionally, Renesas Electronics (6723), Advantest (6857), Tokyo Electron (8035), and Disco (6146) fell due to weak US high-tech stocks.
On the other hand, Laser Tech (6920) rebounded sharply as a response to criticism of short-selling funds, and Nitto Denko (6988), J. Front Retailing (3086), and Fujikura (5803) were bought up following positive reports from securities companies. Insurance stocks such as T&D Holdings (8795) and SOMPO Holdings (8630) also rose. By industry, securities and commodity futures trading, pharmaceuticals, land transportation, electricity and gas, and banking fell, while nonferrous metals, marine transportation, insurance, chemicals, and mining rose.
By industry, securities and commodity futures trading, pharmaceuticals, land transportation, electricity and gas, and banking fell, while nonferrous metals, marine transportation, insurance, chemicals, and mining rose.
The Nikkei average continued to trade in a tight range around the 38,602 yen level, where the 25-day moving average line is located, and the trading value in the morning prime market remained at 1.7 trillion yen. As there are few investors taking aggressive positions before the release of US employment statistics, a similar market is expected to continue in the afternoon. On the other hand, there is a possibility of speculative trading in the bond market with the Bank of Japan's monetary policy meeting coming up next week. The afternoon stock market is likely to develop while keeping an eye on the bond market.