In the morning session on the 13th, the following three points deserve attention.
Interest is focused on high-tech stocks with high value.
Ba Industry's Q2 operating profit increased 43.4% to JPY 2.958 billion.
Focus of the morning session: Denso, skill standardization of soft personnel, industry-crossing mechanism for SDV response.
Interest is focused on high-tech stocks with high value.
On the 13th, the Japanese stock market is likely to experience a stalemate phase after a round of buying, after which the index may start to gradually fluctuate. On 12th US market, Dow Jones Industrial Average falls by 35 points and Nasdaq rises by 264 points. As the May US Consumer Price Index (CPI) exceeded expectations, expectations for an interest rate cut within the year increased, and trading began with buying. While the Federal Reserve Board (FRB) decided to maintain the policy interest rate as expected at the Federal Open Market Committee (FOMC), the expected number of interest rate cuts within the year has been revised from three times to once, and the interest rate has bottomed out, leading the Dow Jones Industrial Average to turn downward. While semiconductor-related stocks were being bought, Nasdaq continued to hit all-time highs. The Chicago Nikkei 225 futures were trading at JPY 39,170, up JPY 220 from Osaka. The yen was trading at around JPY 156.70 against the dollar.
Starting with support from the Chicago futures contract, the market is likely to begin with a preference for buying. On the night session, the Nikkei 225 futures were supported by the 75-day moving average, and they expanded their gains after the CPI results, and were bought up to JPY 39,290. In the United States, Apple hit an all-time high for the second straight day, and high-tech stocks such as Nvidia were being bought. In the Tokyo market, TDK <6762>, Toyo Electric <8035>, Advantest <6857> and other large impact stocks on the index may become material supports for high-tech stocks with high value.
Although the Nikkei average fell yesterday, after falling to JPY 38,809 towards the end of the morning session, downward pressure has been easing. Although it fell below the 75-day moving average at around JPY 39,026, it is expected to capture the 75-day moving average again today. After a round of buying, while waiting for the results of the Bank of Japan's Monetary Policy Meeting, there is a possibility that the market may gradually turn into a phase of stalemate. However, if it continues to trade above the 75-day moving average, it is likely to attract buy-backs from sellers. As the futures option special settlement index calculation (SQ) for June approaches, there may be buying related to hedging. As the upward trend led by futures becomes more likely, attention is likely to focus on high-tech stocks with high value, which have a greater impact on the index. On the other hand, since trading related to the index will be the main driver, there may be limited searches for small and medium-sized stocks, and funds may concentrate on individual stocks with materials. The Growth 250 Index has clearly exceeded the 25-day moving average due to yesterday's rise, and if it shows further rise, it is expected to brighten up the sentiment.
In addition, as it has risen above JPY 39,000 again before the Futures and Options Special Liquidation Index Calculation (SQ) for June, buying related to hedging is also expected. As the upward trend led by the futures becomes more likely, attention is likely to focus on high-tech stocks with high value, which have a greater impact on the index. On the other hand, since trading related to the index will be the main driver, there may be limited searches for small and medium-sized stocks, and funds may concentrate on individual stocks with materials. The Growth 250 Index has clearly exceeded the 25-day moving average due to yesterday's rise, and if it shows further rise, it is expected to brighten up the sentiment.
Ba Industry's Q2 operating profit increased 43.4% to JPY 2.958 billion.
Results for the second quarter of the fiscal year ending October 2024 announced by Ba Industry <6309> showed that sales increased by 10% YoY to JPY 26.58 billion and operating profit increased by 43.4% YoY to JPY 2.958 billion. Sales grew in both machine manufacturing and sales and chemical industrial products sales. Profitability improved due to the growth in sales in both businesses.
Materials of concern in the morning session
The Nasdaq Composite Index rose (17,608.44, up 264.89).
Chicago Nikkei futures rose (JPY 39,170, up JPY 220 from Osaka).
The SOX Index rose (5520.87, up 155.49).
The VIX Index fell (12.04, down 0.81).
US crude oil futures rose (USD 78.50, up USD 0.60).
Long-term US interest rates fell.
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
Denso <6902> supports skill standardization of soft personnel, SDV compliance with cross-industry mechanisms.
Kurimoto Iron Works <5602> collects water supply pipes, recycles them, and uses them as substitutes for pig iron.
Seiko Epson <6724> builds a new print head in Yamagata, with a target production capacity four times higher in 30 years.
H-One (5989) will invest 80 billion yen in facilities over the next three years, with a focus on North American car frames and other areas.
Leon Automachine (6272) produces pie crusts with smart production technology that automatically adjusts the width and thickness.
Yamabiko (6250) demonstrated a portable solar power and storage/generation system in a bicycle parking lot.
Hitachi Shipbuilding (7004) has been selected for feasibility studies on SAF realization projects in Tokyo.
Nippon AeroTech (6291) adapts to increased demand by producing concentrated PTFE filters.
Shimadzu (7701) released analytical instruments specializing in greenhouse gas measurements.
Mitsubishi Heavy Industries (7011) is considering introducing hydrogen co-firing technology in Thailand.
Goyo Kensetsu (1893) has won a construction contract from JFE Engineering for crude MDI distillation and separation equipment in Vietnam.
Mitsubishi Electric (6503) invests in emerging 5G technology in the US to expand private networks.
Furukawa Electric (5801) has agreed to develop offshore wind power line repair services with Tokyo Century and others.
Dai Nippon Printing (7912) partners with Korean NEXEL to culture cardiomyocytes derived from iPS cells.
Teika (4027) triples production of conductive polymer agent reinforcement in 2026.
Mitsubishi Chemical Group (4188) increases production of semiconductor photoresist materials in Fukuoka.
Shin-Etsu Chemical (4063) develops new methods and dedicated equipment to shorten post-processes in semiconductor manufacturing.
Kajima (1812) automates concrete spraying with two nozzles during mountain tunnel construction.
Mitsubishi Estate (8802) is building a next-generation logistics facility in Sendai that supports self-driving trucks.
Sumitomo Chemical (4005) licenses its recycling technology to a US company.
☆ Schedule of events in the morning session
08:50 Q2 Corporate Business Sentiment Survey: Large Enterprises, Overall Industry Business Conditions Index (January-March: 0.0)
10:30 Australia May Unemployment Rate (Expected: 4.0%, April: 4.1%)
10:30 Australia May Change in Employed Persons (Expected: +30,000, April: +38,500)