In the afternoon trading on the 18th, we should pay attention to the following three points.
- The Nikkei average rebounded significantly, and the previous day's rebound was also in a deadlock at the level of 38,500 yen.
- The dollar-yen is struggling, due to the slowdown of the cross-yen.
- The top contributor to the rise is Tokyo Electron (8035), and TDK (6762) is the second.
■ The Nikkei average rebounds significantly, and the previous day's rebound is also in a deadlock at the level of 38,500 yen.
The Nikkei average rebounded significantly. It closed the morning trading at 38,504.11 yen (volume estimated at 700 million shares), up 401.67 yen from the previous day (+1.05%).
The U.S. stock market rose on the 17th. The Dow Jones Industrial Average ended the trading day at 38,778.10 (+188.94, +0.49%), the Nasdaq rose 168.14 points (+0.95%) to 17,857.02, and the S&P500 rose 41.63 points (+0.77%) to 5473.23. The market fell after opening due to concerns about the French political situation and caution about the Federal Reserve's rate cuts. After that, the market turned to buy, expecting a soft landing, and the market remained strong throughout the day. Towards the end of the day, the gains expanded, and the Nasdaq updated its all-time high for the second consecutive day.
Tokyo stocks opened with a buying bias on the back of Europe's peaceful situation, a rise in U.S. markets, and a rebound from yesterday's sharp decline. The Nikkei average returned to the 38,500 yen level due to short-covering of futures, but Prime market trading volume was low at 1.6 trillion yen. Even with the Nikkei average fluctuating by around 1%, aggressive buying and selling continued to be held back as it was yesterday.
Among the Nikkei average adopted stocks, some Apple-related stocks such as TDK (6762), Murata Manufacturing (6981), and MinebeaMitsumi (6479) were bought, as well as semiconductor stocks such as SCREEN HD (7735) and Tokyo Electron (8035). In addition, DOWA Holdings (5714), Nissan Chemical (4021), and Resona Holdings (4004) were bought.
On the other hand, the pharmaceutical sector was generally weak, including Takeda Pharmaceutical (4502), Kyowa Kirin (4151), Eisai (4523), and Daiichi Sankyo (4568). Additionally, Seven & I Holdings (3382) and Ajinomoto (2802) were sold. Moreover, real estate stocks, such as Mitsubishi Estate (8802) and Mitsui Fudosan (8801), were also lackluster.
In terms of industry, other products, services, textiles and clothing, insurance, and precision instruments rose, while the four sectors of pharmaceuticals, electric and gas utilities, wholesale trade, and real estate fell.
Although concerns about the European situation have been alleviated because Mr. Le Pen, a far-right party favored to win in the French general elections, revealed his intention to cooperate with Macron, there is still a cautious mood until the lower house election votes from the end of June to early July (First round of voting on June 30, decisive final round of voting on July 7). As a result, the business at the Tokyo market could decrease even more. Although we need to consider supply and demand, such as margin buying balance, it could be called a summer market before the rainy season arrives. In the afternoon, we also anticipate a deadlock at the level of 38,500 yen.
■ The dollar-yen is struggling, due to the slowdown of the cross-yen.
In the morning trading on the 18th, the dollar-yen was struggling and the price fell slightly from 157.74 yen to 157.51 yen. Although the Nikkei average stock price was more than 400 yen higher than the previous day and was strongly included, the selling of the yen has slowed down. Due to the soft tone of the euro-yen, which is concerned about France's political risk, it has decelerated along with cross-yen.
The so far trading range is 157.51-157.74 yen for the dollar-yen, 168.98-169.39 yen for the euro-yen, and $1.0723-$1.0740 for the euro-dollar.
Check stocks for the afternoon session
- Eight stocks, including JTP <2488> and G-si planning <4073>, hit the limit upward.
*Includes temporary stopper (indicated price)
- Top rising contributors are TDK <6762> in second place and Toho Electronics <8035> in first place.
Economic indicators and remarks by important people
[Economic indicators]
- US NY Fed Manufacturing Index for June: -6.0 (financial estimates: -10.0, May: -15.6).
[Important Person's Remarks]
- Haruhiko Kuroda Bank of Japan Governor
"Various information and data since April generally reflect the outlook."
"I'm not confident that I can definitely achieve my goal."
"The amount and method of reducing government bond purchases will be decided and disclosed at the next meeting in July."
"In some cases, it is quite possible to raise the policy interest rate at the next meeting."
"Reducing government bond purchases and raising the policy interest rate are separate issues."
Not applicable.
- 13:30: Reserve Bank of Australia announces policy interest rate (expected to remain at 4.35%).