In the morning trade on the 27th, the following three points should be noted.
- Micron's decline has an impact, but the buying interest on dips is still strong.
- Daido Steel: Operating profit of 24/3 decreased by 15.5% to 42.2 billion yen, 25/3 financial estimates increased by 13.6% to 48 billion yen.
- Key material in the morning: SCREENHD developed 2D Optical Phase Modulator for Satellite Communication "Terra Class" by 2026.
- Micron's decline has an impact, but the buying interest on dips is still strong.
The Japanese stock market on the 27th is likely to be dominated by profit-taking in a form that cools down overheating. On the 26th, the US market saw the Dow Jones Industrial Average rise by 15 dollars and the Nasdaq rise by 87 points. Expectations for rate cuts receded as senior officials of the Federal Reserve Board (FRB) showed reluctance to aggressively cut rates. Against the backdrop of expectations for artificial intelligence (AI), high-tech stocks remained firm and supported the market. Chicago Nikkei Average futures were traded at 39,415 yen, down 205 yen from Osaka's closing price during the day. The yen was being traded at around 160.70 to 1 US dollar.
From the perspective of sellers shifting to Chicago futures, selling is likely to precede. The Nikkei 225 futures were weak in the night session until the end, and were sold to 39,330 yen at one point. In the daytime trading on the previous day, they were bought up to 39,790 yen, and as overheating was easily cautioned, it is likely to adjust in a form that cools down overheating.
In the foreign exchange market, the yen continued to decline, with the dollar rising to around 160.80 yen at one point, and the rise in long-term US interest rates on the back of this was weighing on the US market. Amid intervention speculation, it is advisable to be wary of rebalancing movements due to sharp fluctuations in exchange rates. Also, Micron Technology, which announced earnings after trading closed, fell almost 7% in after-hours trading as its performance expectations failed to meet expectations and could be a burden on high-tech stocks with significant impacts on indices.
On the previous day, the Nikkei average stock price exceeded the high-return prices in mid-June and May, and recovered to the level since mid-April. Since the previous high return price level around 39,400 yen has changed to the support line, the buying interest on the dips is expected to be strong at the same level. Also, although selling is likely to occur in high-tech stocks due to the decline in Micron, there seems to be strong buying interest in dips in high-tech stocks such as Amazon.com, whose market capitalization has exceeded 2 trillion dollars.
- Daido Steel: Operating profit of 24/3 decreased by 15.5% to 42.2 billion yen, 25/3 financial estimates increased by 13.6% to 48 billion yen.
The performance of Da Tong Special Steel＜5471＞ for the March 2024 fiscal year, sales revenue was 578.564 billion yen, a decrease of 0.1% from the previous year, and operating profit was 42.25 billion yen, a decrease of 15.5% from the previous year. For the fiscal year ending March 2025, sales revenue is planned to be 600 billion yen, an increase of 3.7% over the previous year, and operating profit is expected to increase by 13.6% to 48 billion yen, exceeding the consensus (about 47 billion yen).
Materials of concern in the morning session
- Nikkei average rose (39,667.07, +493.92).
- Dow Jones Industrial Average rose (39,127.80, +15.64).
- NASDAQ Composite Index rose (17,805.16, +87.50).
- 1 dollar = 160.70-80 yen.
- VIX index fell (12.55, -0.29).
- US crude oil futures rose (80.90, +0.07).
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
- SCREENHD <7735>: Develop 2D optical phase modulation device by 2026 for satellite communication "Terra class".
- JTEKT <6473> President "Establishing infrastructure by integrating elemental technologies" Focus on high value-added products.
- Oriental Securities <8614>: Mr. Ogawa appointed as president, Mr. Kuwahara declines reappointment, an unusual development.
- Takeda Pharmaceutical <4502>: Confident in sustainable growth, concerns about excessive dividends.
- Maeda Kosen <7821> acquires Mitsui Chemicals San-Solution for 5.6 billion yen, expanding civil engineering and construction materials.
- Nichikisang <6376> to deliver liquid hydrogen to 20 locations in South Korea through its US subsidiary.
- MonotaRO <3064> doubles productivity by streamlining inventory management processes.
- Ikeda Seikis <6310> tractor attachment reduces tillage time in fields by one-third.
- Anritsu <6754> showcases local 5G visualization system at NTT East Laboratory.
- Mitsubishi Electric <6503> enhances product durability with recycled resin from discarded household appliances.
- GMO Global Sign HD <3788> partners with wolfSSL to secure IoT device data.
- Hitachi <6501> expands its global presence in the railway business with a 1 trillion yen operation.
- Dai Nippon Printing <7912> starts offering packaging materials for oral medicines with constant humidity control without a drying agent.
- BB Security <4398> collaborates with Kanematsu Electronics to provide cybersecurity for overseas locations.
- Kaneka <4118> starts mass-producing biodegradable polymers with dedicated facilities in Hyogo and Takasago.
- Toda Construction <1860> streamlines steel frame construction with remote tower crane operation.
- Shin-Nihon Electric Wire <5563> supplies high-performance thermal storage material for ultra-small satellites to stabilize power temperature.
- Nomura Real Estate <3231> collaborates with three other firms, including Tokushin Kogyo, to develop a large-scale urban development project in Vietnam.
- Daio Paper <3880> develops non-fluorine oil-resistant paper for food packaging and underlay paper.
- Unichika <3103> establishes industrialization technology for polyester polymerization using non-metallic catalysts.
☆ Schedule of events in the morning session
Not applicable.
10:30 Industrial corporate profits in May (April: +4.0% YoY).