In the afternoon of the 27th trading day, the following three points should be noted.
- The Nikkei average fell for the fourth day, possibly due to the impact of ex-dividends and the previous day's significant increase.
- The dollar-yen rate is weak and down due to profit taking.
- The top contributors to the decline are Tokyo Electron (8035) and First Retailing (9983).
Nikkei average fell for the fourth day, possibly due to the impact of ex-dividends and the previous day's significant increase.
The Nikkei Average fell for the fourth day, ending the morning session at 39,286.52 yen (approximately 670 million shares traded), down 380.55 yen (-0.96%) from the previous day.
The US stock market rose on the 26th. The Dow Jones average rose 15.64 dollars (+0.04%) to 39127.80, the NASDAQ index rose 87.50 points (+0.49%) to 17805.16, and the S&P 500 rose 8.60 points (+0.16%) to close at 5477.90. As long-term interest rates rose, the opening fell. Federal Reserve Board (FRB) officials on the previous day showed a reluctance to rush to lower interest rates, which reduced expectations of a rate cut. Against the backdrop of growing caution ahead of the release of the PCE price index, which the FRB emphasizes, High-tech stocks remained strong and supported the market.
Due to a reaction to the significant increase in the previous day, the Tokyo market started with selling pressure. Financial stocks were bought as the yield on newly issued 10-year government bonds, an indicator of long-term interest rates, rose to 1.075%, but the market was in a downward trend centered on high-tech stocks. In addition to the impact of rights and dividends, the Nikkei Average fell about 1% from the previous day, but stopped falling at around 39,200 yen, a resistance level from May to June.
In the Nikkei average adopted stocks, JT<2914> and Canon<7751> fell due to the effects of rights and dividends, and Tokyo Electron<8035> and Sumitomo Pharma<4506> fell due to the reaction to the significant increase in the previous day. Screen HD<7735>, Daiichi Sankyo<4568>, Fast Retailing<9983>, and Kikkoman<2801> were weak.
On the other hand, Hitachi<6501> rose and surpassed Sony Group<6758> in market capitalization, and financial stocks such as Shizuoka Financial Group<5831>, T&D Holdings<8795>, Mitsubishi UFJ<8306>, Dai-ichi Life Holdings<8750>, and Mitsui Sumitomo<8316> were notable for their rise, as long-term interest rates were seen as a material factor for the rise in financial stocks.
In terms of industry, mining, rubber products, food, pharmaceuticals, other financing businesses, and other financing businesses declined, while banking, insurance, marine transportation, warehouse and transportation related businesses, pulp and paper, etc. rose.
Although the exchange rate was advancing with a trend of a weak yen and a strong dollar until around morning, hitting to 160 yen 80 sen per dollar. At lunchtime, it stopped and remained at 160 yen 40 sen per dollar as Taro Suzuki, the Finance Minister, expressed the view that "rapid one-sided movements are not desirable", but it is limited to a general verbal intervention.
In the afternoon, it is likely that we will be watching the exchange rate market and the interest rate market. We should pay attention to whether the Nikkei average can maintain the 39,200 yen level, where the decline stopped. Today, the Nikkei average may gradually shrink its decline in the afternoon because of the supply and demand impact of the rights and dividends.
- The dollar-yen rate is weak due to profit-taking sales.
On the morning of the 27th in the Tokyo market, the dollar-yen rate became weak and fell from 160 yen 77 sen to 160 yen 40 sen. The dollar initially came under the buying trend due to the rise in the yield of the US 10-year bonds and aimed for 161 yen, but profit-taking sales became stronger in the event of the highest level in more than 37 years, resulting in a slowdown around noon.
The trading ranges up until this point are as follows: dollar-yen is 160 yen 40 sen to 160 yen 77 sen, euro-yen is 171 yen 39 sen to 171 yen 70 sen, and euro-dollar is 1.0677 dollars to 1.0690 dollars.
Check stocks for the afternoon session
- Seven stocks, including Post Prime (198A) and Sanbio (4592), hit the daily limit high.
*Includes temporary stopper (indicated price)
- The top contributors to the decline are Tokyo Electron (8035) and First Retailing (9983).
Economic indicators and remarks by important people
[Economic indicators]
- US May new home sales: 619,000 units (est: 633,000 units, April: 698,000 units).
[Important Person's Remarks]
-Minister of Finance Suzuki
"Stable progress is desirable. Rapid one-sided movements are not desirable."
"Strongly concerned about the impact on the economy. We will respond as necessary."
"I will not comment on the level of the exchange rate itself."
Not applicable.
- The first TV debate for US presidential candidates.