In the morning of the 18th trading, the following three points should be noted.

Movement aimed at the rebound of high-tech stocks

Sunautas, operating profit for April 24, 4 decreased by 14.3% to 246 million yen, and the expected revenue for April 25 increased by 42.3% to 350 million yen.

Key materials in the morning: cross-industry chemical management by 49 companies and organizations including Canon and Toyota, aiming for operational infrastructure by 2027.

Movement aimed at the rebound of high-tech stocks

The Japanese stock market on the 18th is expected to have a stagnant market development after a round of buying. On the 17th, the US market saw the Dow Jones Industrial Average rise by 188 dollars and the NASDAQ rise by 168 points. There were instances of selling due to caution about the French political turmoil and the Federal Reserve Board's interest rate cut. However, afterwards, it turned to buying which expected a soft landing. The Nikkei 225 futures in Chicago were 410 yen higher than Osaka, at 38,410 yen. The yen rate is moving around 157.70 yen per dollar.

It is expected to start with a buying advantage in the form of a podding on the Chicago futures market. The Nikkei 225 futures started to rebound in the night session and became a good example of expanding its gain on the flow of the US market, and was bought up to 38,450 yen at one point. Yesterday's Nikkei Average fell below 38,000 in a vacant trade and showed a move to approach the Bollinger Band -3σ level, so it is conscious of the autonomous rebound due to overselling. However, -1σ is located around 38,440 yen, and around the milestone of 38,500 yen, the strength and weakness are easily in conflict, so it is important to determine the stability of the buying cycle.

If it moves above -1σ, there is a possibility that the movement of rebound aiming at high-tech stocks with large index impact will be conscious. In the United States, Nvidia updated its highest level while falling slightly, and big tech stocks such as Apple and Microsoft were bought. Arm Holdings was also solid, so there is a possibility that search for SoftBank G <9984> will also be conscious. On the other hand, if the slowness of the return is conscious, there may be a short-term selling trigger based on futures, but the willingness to buy stocks that are moving in high price ranges such as SoftBank G and Disco <6146> seems to be strong. Expectations for growth in AI-related areas are strong, so a stance of aiming for a pullback in high-tech stocks is likely. In addition, since the growth trend of the Growth 250 index continues from the bottom area, it is likely that there will be a re-evaluation of buying aiming for a rebound corner of small and mid-cap stocks.

Japanese stock market on the 18th is expected to have a stagnant market development after a round of buying. If slowness in the return is conscious, there may be a short-term selling trigger based on futures. However, the willingness to buy stocks that are moving in high price ranges seems to be strong. Expectations for growth in AI-related areas are strong, so a pullback in high-tech stocks is likely. Also, as the growth trend of the Growth 250 index continues from the bottom area, there is an expected re-evaluation of buying aimed at rebound corners of small and mid-cap stocks.

Sunautas, operating profit for April 24, 4 decreased by 14.3% to 246 million yen, and the expected revenue for April 25 increased by 42.3% to 350 million yen.

Sunautas' fiscal year ending April 2024 sales increased by 2.8% to 16.634 billion yen compared to the previous year, and operating profit decreased by 14.3% to 246 million yen. Although fuel oil sales at service stations decreased slightly, non-oil products, car inspections, coatings, etc. were steady. Results of the new product, 'ENEOS new car subscription', have also begun to improve. The fiscal year ending April 2025 plans revenue of 19.5 billion yen, up 17.2% from the previous year, and operating profit of 350 million yen, up 42.3% from the previous year.

Materials of concern in the morning session

The NY Dow Jones Industrial Average rose (38,778.10, +188.94).

The Nasdaq Composite Index rose (17,857.02, +168.14).

1 dollar = 157.70-80 yen.

Chicago Nikkei futures rose (38,410, compared to Osaka +410).

The SOX index rose (5,688.10, +89.79).

US crude oil futures rose (79.72, +1.67).

Expectations for inflation to ease in the US.

Request for improvement in corporate value by the Tokyo Stock Exchange.

Canon and Toyota are aiming to establish a cross-industry chemical management infrastructure with 49 companies and organizations.

NITTOKU will provide a new factory and a production line for EV motors in Miyagi.

Suzuki and Tier 4 are partnering to develop self-driving services.

SoftBank G is partnering with a new U.S. start-up to provide a one-year free AI search engine.

Hokkaido Electric Power, Mitsubishi Corporation, and others are considering green hydrogen in Chitose, Hokkaido.

Mitsuzhi will produce components in India and create a new factory in 2026.

TDK has developed new materials for solid-state batteries with an energy density 100 times higher.

NTT introduces new technology that uses the brain's visual illusion to display giant 3D images.

Dai Nippon Printing will launch a double-sided photo printer in the U.S. that is the lightest in the world.

Rakuten Mobile surpasses 7 million mobile communication lines.

Hitachi has extended the lifespan of quantum bits by 100 times through microwave technology.

Toppan has developed an organic interposer that guarantees electrical inspection with standalone function.

Nikon plans to complete a new building in Odawara, Tochigi in fiscal year 2027.

- NTT Data Ink, a printing consultation company, has been acquired by NTT Data Group <9613>.

- Tohoku Electric Power <9506> will resume operation of the Onagawa No. 2 reactor, and safety equipment will be made public.

- Daibuilding Group <1802> provides green hydrogen supply in New Zealand, and installs fast filling facilities for cars.

- From next month, Toray Industries Inc. <3402> will raise the price of synthetic fiber yarns and other products.

- Taiyo Nippon Sanso, a subsidiary of Japan Oxygen HD <4091>, is selling equipment for burning exhaust gases with hydrogen for semiconductor production.

- Mitsubishi Chemical Group <4188> and chemical product WG have jointly demonstrated logistics in the Kanto and Tokai regions.

- Asahi Kasei <3407> has successfully demonstrated the concept of super ion-conductive electrolytes for LIBs.

☆ Schedule of events in the morning session

10:10 BOJ Notice of Government Bond Purchases

Not applicable.