The Nikkei average fell for the third day. At the end of the morning session, the index traded at 38,826.33 yen (approx. 760 million shares) with a decline of 308.46 yen (-0.79%) from the previous day.

On the 11th, the US stock market was mixed. The Dow Jones Industrial Average closed at 38,747.42 (-120.62, -0.31%), the NASDAQ closed at 17,343.55 (+151.02, +0.88%), and the S&P 500 closed at 5,375.32 (+14.53, +0.27%). They fell due to concerns about the Federal Open Market Committee (FOMC) and the Consumer Price Index (CPI) announcements and traded poorly all day. The Dow Jones fell on concerns about commercial real estate and other sectors as the banking sector weighed heavily on the market, while the NASDAQ rose, supported by Apple’s rise, and steadily rose. The NASDAQ has set a new record high for the second consecutive day.

The US stock market was mixed, but the Tokyo market opened with selling pressure before the announcement of the FOMC statement tonight. The initial decline wiped out the gains from the beginning of the week, but after the position adjustment was completed, it remained at the 38,800 yen level. Long-term government bond yields as an indicator fell below 1.000%, which weighed on financial stocks, but aggressive selling was held back during the Bank of Japan-US-China meeting week.

In the Nikkei average adopted stocks, Japan Steel Works <5631> fell due to the dissatisfaction with its new medium-term management plan, and domestic securities company reports were negatively viewed, causing JR East <9020> and JR West <9021> to decline. In addition, Toho <9602>, Daiichi Sankyo <4568>, Oji Holdings <3861>, and Mitsubishi Estate <8802> fell.

On the other hand, Apple's rise had an impact and Apple-related stocks such as TDK <6762>, Nippon Electric Glass <6988>, Murata Manufacturing <6981>, Alpine Electronics <6770>, and Taiyo Yuden <6976> all rose. In addition, Eneos Holdings <5020>, Idemitsu Kosan <5019>, and INPEX <1605> were also bought due to rising resource prices. In addition, Aozora Bank <8304>, Itochu <8001>, and Laser Tech <6920> rose.

Among different sectors, sectors such as pulp and paper, securities and commodity futures trading, precision equipment, marine transportation, and pharmaceuticals fell, while only two sectors, petroleum and coal products and mining, rose.

The exchange rate continues to be stable at 157.10 yen per dollar. The US 10-year bond yield has been flat at around 4.40% after hours. There is a growing mood to watch the FOMC statement and policy interest rate announcement at 3:00 pm on the 13th and the press conference by Powell, chairman of the US Federal Reserve Board (FRB), at 3:30 pm Tokyo time. Also, with the release of the May CPI at 9:30 pm tonight, there are few active investors engaging in buying and selling. It is expected that the afternoon market will be even more cautious, as both the currency and bond markets will be in a waiting mood, and the Nikkei Average will also be a small move.