Three points to focus on during the afternoon trading of the 7th.
- The Nikkei average falls and takes a wait-and-see approach before the US employment statistics with a tug-of-war at the 25-day moving average.
- The dollar-yen exchange rate is heavy upside, aiming to recover 156 yen.
- The top two price cuts are Shionogi & Co., Ltd. <4507> and Advantest <6857>.
- The Nikkei average falls and takes a wait-and-see approach before the US employment statistics with a tug-of-war at the 25-day moving average.
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.
- The dollar-yen exchange rate is heavy upside, aiming to recover 156 yen.
On the morning of the 7th, the dollar-yen rate rose from 155.55 yen to 155.93 yen and then demonstrated heavy upward movements. There was speculation about the Japanese government's foreign exchange intervention, and trading in yen occurs. Meanwhile, the further dollar buying was suppressed by the stabilization of the yield on US 10-year bonds, and the euro was strong against the dollar.
The trading range so far is 155.55 yen to 155.93 yen for the dollar-yen rate, 169.44 yen to 169.81 yen for the euro-yen rate, and from 1.0887 dollars to 1.0897 dollars for the euro-dollar rate.
Check stocks for the afternoon session
- Four stocks hit the daily limit, including Mobilus<4370> and Noile-Immune Biotech<4893>.
*Includes temporary stopper (indicated price)
- The top two price cuts are Shionogi & Co., Ltd. <4507> and Advantest <6857>.
Economic indicators and remarks by important people
[Economic indicators]
- Japanese household spending in April: +0.5% YoY (expected: +0.5%, March: -1.2%).
[Important Person's Remarks]
-Minister of Finance Suzuki
"It is necessary to maintain market trust during this transition to a world with interest rates."
"Foreign exchange intervention should be carried out conservatively."
"Rapid response is necessary."
"We will watch the foreign exchange market and take all necessary measures."
"We are not considering any constraints on foreign reserve assets."
-Ministry of Finance
"The decline rate of securities in late May foreign reserves is the highest ever."
-14:00 April Economic Trends Index Preliminary Report (Expected 111.6, March 112.2)
-15:00 German April Mining Production (expected month-on-month: +0.2%, March: -0.4%)
- 3:00 PM, Germany's April trade balance (financial estimates: +22.7 billion euros, March: +22.2 billion euros).