The Nikkei Average rose significantly and closed for the morning session at 39,726.39 yen (with an approximate volume of 710 million shares traded), up 553.24 yen (+1.41%) from the previous day.
The U.S. stock market on the 25th was mixed. The Dow Jones Industrial Average closed at 39,112.16, down 299.05 points (-0.76%), while the Nasdaq index closed at 17,717.65, up 220.84 points (+1.26%), and the S&P 500 closed at 5,469.30, up 21.43 points (+0.39%). The market opened mixed as well. Concerns about the future of the economy due to a decline in the June Consumer Confidence Index and Federal Reserve Board (FRB) officials showing a cautious stance toward interest rate cuts weighed heavily on the market. A rebound in semiconductor company Nvidia supported investor sentiment, and purchases were made in semiconductor and AI stocks, leading to an increase in the Nasdaq. Nvidia had fallen more than 10% from its recent high and entered an adjustment phase, but there was also a sense of value in its stock.
As a result of the Nasdaq's rise and the Philadelphia Semiconductor Stock Index (SOX Index) rising 1.78% from the previous day, the Tokyo market opened with a focus on high-tech stocks and buying dominance. The Nikkei rose, pulled up by semiconductor stocks, and expanded its gains to the 39,700 yen range. During trading hours, it rose to a level not seen since April 12 and closed at its morning high. The turnover on the Prime Market remained in the 1.9 trillion yen range. Among the Nikkei Average components, Advantest <6857>, which announced a new medium-term management plan for the fiscal year ending March 27, 2027, has surged. In addition, Sumitomo Pharma <4506>, which had news of layoffs, was bought. Also, some semiconductor-related stocks such as Tokyo Electron <8035> and Screen HD <7735> rose following the previous day's decline. Daichin Construction <1801> and Obayashi Corporation <1802> rose as some securities firms saw their reports as material. Mitsukoshi Isetan <3099> and Resonac <4004> also rose.
On the other hand, automotive-related stocks such as Toyota Motors <7203> and Mazda Motors <7261> were sluggish due to the recoil from the previous day's rise, as were resource prices, with ENEOS Holdings <5020> and Idemitsu Kosan <5019> being sold. Also, the maritime shipping sector was somewhat sluggish due to a report by a domestic securities firm that pointed out that it was in a box range. In terms of industry sectors, electric appliances, pharmaceuticals, precision instruments, service industries, and non-ferrous metals rose, while petroleum and coal products, fisheries and agriculture, iron and steel, marine transportation, and transportation equipment fell.
The top stock that contributed to the rise was Tokyo Electron <8035>, which pushed up the Nikkei Average by about 107 yen with just one stock. Second place was Advantest <6857>, followed by First Retailing <9983>, TDK <6762>, SoftBank Group <9984>, Recruit Holdings <6098>, and Daiichi Sankyo <4568>, among others. The top declining stock was KDDI <9433>, which pushed down the Nikkei Average by about 7 yen with just one stock. Second place was Toyota <7203>, followed by Mitsubishi Shoji <8058>, Nitori Holdings <9843>, Sosei Next <6526>, Toyota Tsusho <8015>, and Suzuki <7269>.
In terms of industry sectors, electric appliances, pharmaceuticals, precision instruments, service industries, and non-ferrous metals rose, while petroleum and coal products, fisheries and agriculture, iron and steel, marine transportation, and transportation equipment fell.
After 10 o'clock, the exchange rate reached 159.80 yen per dollar, and the yen depreciated while the dollar appreciated. It is observed that there is a strong demand for yen selling by practical demand traders, but the rate remained at 159.70 yen during lunchtime. As the 160 yen mark is approaching for the first time since April 29, export-related stocks are benefiting from the tailwind.
The main buyers of Japanese stocks are not clear, but some see buying opportunities in the "TOPIX reform second edition" by JPX Research. While the trading volume of the Prime market in the morning has not yet reached 2 trillion yen, core TOPIX 30 stocks are slightly being bought, indicating the possibility of foreign investors. If foreign investors do enter the market, the Nikkei average may surpass the recent high of 39,400 yen, and we can expect a further rise in the market in the afternoon.