The Nikkei average continues to decline. At the end of the morning session, it was down by 45.35 yen (-0.12%) from the previous day, at 38,831.36 yen (approximate trading volume of 810 million shares).

The US stock market was mixed on the 12th. The Dow Jones Industrial Average closed at 38,712.21, down 35.21 points (-0.09%); the Nasdaq rose 264.89 points (+1.53%) to 17,608.44; the S&P 500 rose 45.71 points (+0.85%) to 5,421.03. After opening, it rose due to buying following the release of May CPI, which was lower than expected and raised expectations of a rate cut by the end of the year. While the Fed kept policy rates unchanged as expected at the Federal Open Market Committee (FOMC), projections by members (the dot chart) lowered expectations of 3 rate cuts to 1 by the end of the year, causing interest rates to stop falling and leading to a downturn in the Dow. The Nasdaq continued to be strong throughout the day, updating its record high, and ended mixed.

Following the rise of the Nasdaq, the Tokyo market started trading with a buying preference. Tokyo Electron <8035> and Advantest <6857> rose due to a significant increase in Philadelphia Semiconductor Stock Index (SOX Index). Although the rise in semiconductor stocks had a positive impact on the Nikkei average, it ended the session in the negative territory due to the slowing down of Tokyo Electron's stock.

Among the Nikkei average constituent stocks, insurance stocks such as T&D Holdings <8795>, SOMPO Holdings <8630>, Dai-ichi Life Holdings <8750>, and Tokio Marine <8766> were sold due to a decline in the yield of newly issued 10-year government bonds, which is an indicator of long-term interest rates. In addition, Astellas Pharma <4503> and Eisai <4523> were lackluster.

Following a significant increase in the SOX Index, Renesas Electronics <6723>, Advantest, SoftBank Group <9984>, and other semiconductor stocks were bought. Apple-related stocks such as Taiyo Yuden <6976> and Murata Manufacturing <6981> were also in buying preference.

In terms of industry, insurance, electricity and gas, nonferrous metals, wholesale trade, and transportation equipment declined, while machinery, services, information and communications, electric appliances, and precision instruments rose.

In anticipation of the Bank of Japan's monetary policy meeting, a wait-and-see mood is expected to continue in the afternoon session. The direction of the prime market is uncertain, as its trading value remains at JPY 2 trillion. It is speculated that the market will continue to be cautious until the results of tomorrow's BOJ meeting are announced.