In the morning session on the 25th, the following three points should be noted.

■ It is expected to have a somewhat TOPIX-type advantageous development.

■ Shimamura, 1Q operating profit increased by 0.3% to 14.5 billion yen.

Focus on the following points in the morning's attention: Inoseki Agricultural Machinery expands orders in Europe and expands biofuel mowers.

■ It is expected to have a somewhat TOPIX-type advantageous development.

On the 25th, the Japanese stock market is expected to remain in a strong stalemate. On the 24th, the US market saw the NY Dow rise by 260 dollars and the Nasdaq fall by 192 points. Dow, which is supported by purchases of sensitive stocks and lagging brands such as banks and energy, moved firmly throughout the day. On the other hand, the Nasdaq fell due to the sale of semiconductor stocks such as Nvidia for the second week in a row. Chicago Nikkei average futures are trading at 38,710 yen, 30 yen lower than Osaka. The exchange rate is hovering around 159.50 yen to the dollar.

Due to the posture of leaning toward the Chicago futures market, selling is expected to precede buying. Although the Nikkei 225 futures were purchased up to 38,970 yen at the night session, it softened toward the end and was sometimes sold up to 38,670 yen. It is likely to be a burden on the Nikkei Stock Average as it is easy to take profits from stocks with large index impact such as Tokyo Electron <8035> and Advantest <6857>, which fell due to Nvidia's decline.

Yesterday's Nikkei average stock price started with selling, but it recovered in the plus range as one corner of high-tech stocks was repurchased amid a large impact of the index. There were scenes where it broke through the 25-day line and approached the 75-day line. High-tech stocks, which continue to have a strong momentum, are easy to take profits, but it is expected that the psychological resistance will be around 38,930 yen, where the 75-day line is located, while the firmness around 38,700 yen, which is around the 25-day line, is likely to be conscious.

In addition, it will be necessary to observe for a while, since it is within the range of taking profit for Nvidia and it is difficult to turn to selling views. Although it is easy to take profits from high-tech stocks that continue to be strong, buying interest for dips is likely to be strong for stocks such as Tokyo Electron, which are adjusting on a daily basis.

In the foreign exchange market, the movement to approach 1 dollar = 160 yen is shown. Although there is speculation about foreign exchange intervention, intervention is often considered temporary and the yen is likely to remain weak. Therefore, a somewhat TOPIX-oriented development is expected, as a shift of funds towards export-related industries is likely to be considered and energy stocks are likely to be searched for as a result of the rise in NY crude oil futures market.

■ Shimamura, 1Q operating profit increased by 0.3% to 14.5 billion yen.

Shimamura (8227) announced that its revenue for the first quarter of the 2025 fiscal year was JPY 164.466 billion, up 4.7% YoY, and operating profit was JPY 14.579 billion, up 0.3% YoY. The revenue for the Shimamura business was JPY 119.843 billion, up 4.6% YoY, Birthday business was JPY 21.962 billion, up 4.2% YoY, and Abil business was JPY 16.390 billion, up 5.2% YoY. The results for the 2025 fiscal year ending in February maintained the first quarter plan of revenue of JPY 659.622 billion, up 3.9% from the previous year, and operating profit of JPY 56.362 billion, up 1.9% from the previous year.

Materials of concern in the morning session

The Nikkei Average is up (38,804.65, +208.18)

The NY Dow is up (39,411.21, +260.88)

US crude oil futures are up (81.63, +0.90)

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.

・ Sumitomo Chemical <4005>: Next-generation EUV exposure new resist without impurities and using no metal for exposure.

・ Hokuriku Kozai <3865>: Shareholders' meeting on the 27th resulted in confusion with shareholders proposing to dismiss the president.

・ Toyo Engineering <6330> and SCG Chemicals have plans to develop waste plastic oil refining technology and license it.

・ Rohto Pharmaceutical <4527> invests in Rikashibu to promote healthy management with AI.

・ Mitsui & Co. <8031>: Executive Officer and head of the distribution business department Asami launches an offensive in food and clothing with a solid foundation.

・ Mitsui & Co. <8031>: Acquired gas development rights in the United States, targeting low-carbon demands.

・ Kanematsu <8020> acquires electronic equipment distribution business to strengthen DX promotion product group.

・ Mitsubishi Motors <7211>: Investing in Australian car leases aims to increase sales.

・ IHI <7013> installed a small-scale SAF manufacturing test device in Singapore.

・ Furukawa Kikai Kinzoku <5715>: Furukawa Unic cooperates with Symphony to conduct crane training using VR technology.

・ Mitsui E&S <7003> releases an application for drone inspection route generation in collaboration with Zenrin Datacom.

・ Shibaura Machine <6104> sold its factory site in Shizuoka for 4.4 billion yen.

・ Komatsu <6301> deepens central Asia, selling 150 mining dump trucks.

・ Kawasaki Heavy <7012> demonstrated the protective and blocking performance of a ventilation device for underground shelters.

・ Yamabiko <6250> supplies biofuel for forestry associations for testing purposes.

Dexerials <4980> expands its direct proposal for automotive parts marketing bases in the United States.

NEC <6701> and Urthecast to collaborate on a new satellite image analysis service for Japan.

NTT <9432> and DoCoMo successfully demonstrated remote robotic surgical support using 5G technology.

Fujitsu <6702> is using semiconductor technology to control diamond spin quantum.

TradeWorks <3997> has partnered with SCSK to build a securities business platform.

Mitsui Chemicals <4183> is strengthening its risk response and creating business added value.

Obayashi Corporation <1802> has developed a sealing material using scallop shells as a effective use of sea resources.

☆ Schedule of events in the morning session

Not applicable.

Not applicable.