The Nikkei average continued to rise. At the end of the morning session, it closed at 39,155.16 yen (+117.00 yen, +0.30%) with an approximate trading volume of 650 million shares.
The U.S. stock market rebounded on the 10th. The Dow Average closed at 38,868.04 (+69.05, +0.18%), the Nasdaq at 17,192.53 (+59.40, +0.35%), and the S&P 500 at 5,360.79 (+13.80, +0.26%). After early expectations of a rate cut receded and selling pressure emerged, the stock market initially fell at the opening. At the same time, buying of high-tech stocks, with expectations of support from a soft landing and the announcement of new artificial intelligence (AI) functions at Apple's event, pushed the market up and it turned upward. Although cautious sentiment prevailed ahead of the release of the May consumer price index (CPI) and the Federal Open Market Committee (FOMC) this week, the market remained in positive territory. The Nasdaq set a new all-time high at the end of the session.
Following the rise in U.S. stocks, the Tokyo market opened with a buying bias. As the Philadelphia Semiconductor Stock Index (SOX Index) rose more than 1% from the previous day, Toshiba Electronic (8035) rose, leading the Nikkei average. The Nikkei average rose to as high as 39,336.66 yen after opening. However, the active trading was restrained due to the fact that it was the week of the central banks of Japan, the United States, and China, and trading value in the Prime market remained at 1.7 trillion yen.
In the Nikkei average adopted stocks, wire manufacturers rose, such as Furukawa Electric (5801), Sumitomo Electric Industries (5802), Fujikura (5803), as well as ENEOS Holdings (5020) and Idemitsu Kosan (5019) due to the rise in resource prices. In addition, the shares of Taiyo Yuden (6976), Ebara Corporation (6361), Mitsubishi Heavy Industries (7011), and Shimizu Corporation (1803) were bought.
Meanwhile, at the FDA advisory committee, it has been reported that Eli Lilly's drug "Donanemab" for Alzheimer's type dementia developed in the United States will be recommended for approval unanimously, and there is a sense of caution about the advent of competing drugs. Shares of Eisai (4523) and Mitsubishi Electric (6503), Mitsui Chemicals (4183), Sharp (6753), and Murata Manufacturing (6981) were lackluster.
In terms of industry, petroleum and coal products, marine transportation, insurance, mining, and electric and gas industries rose, while securities and commodity futures trading, land transportation, air transportation, other products, and information and communication industries declined.
The Nikkei Average is trading above the 39,018 yen level, where the 75-day moving average line is located. if it closes above the 75-day moving average, it will be the first time since May 27th. The trading volume on the main board market is visibly shrinking, but the tone is in line with the adage 'no sellers in the quiet market'. While it is not necessarily a strong market with upward focus, if it surpasses the return high of 39,437.16 yen on May 20th, there is a possibility that trading volume will increase. As it is difficult to test this level in the afternoon due to the narrowing of the gains in the morning session, attention should be paid to clearing the return high this week when the market is quiet.