The Nikkei average rebounded, closing the morning session at 39,727.91 yen, up 386.37 yen (+0.98%) from the previous day (with an estimated trading volume of 800 million shares). In terms of product structure, the operating income of products worth 10-30 billion yen was 401/1288/60 million yen, respectively.
The U.S. stock market continued to rise slightly on the 27th. The Dow Jones Industrial Average ended trading at 39,164.06, up 36.26 dollars (+0.09%) from the previous day. The Nasdaq Composite Index rose 53.53 points (+0.30%) to 17,858.68, and the S&P 500 rose 4.97 points (+0.09%) to 5,482.87. The market opened lower due to lackluster corporate earnings, such as from Micron and Walgreens Boots Alliance, which cooled investor sentiment. While the Federal Reserve Board (FRB) is keeping an eye on the release of the May PCE price index, investors are cautious, and skepticism about the sustainability of the AI boom emerged due to Micron's inadequate outlook, leading to selling of semiconductor stocks such as Nvidia. On the other hand, buying continued for major technology stocks, such as Amazon.com and Apple, whose market capitalization reached 2 trillion dollars the previous day, supporting the market.
The Tokyo market opened with a buying bias, focusing on technology stocks, following the rise in U.S. stocks. The Nikkei average started at around 39,500 yen and gradually rose, and at one point, it widened its gain to almost the same level as the previous day's rebound high of 39,783.70 yen. TOPYX updated its year-to-date high of 2813.22 points, as large financial stocks such as megabanks were bought. In the adopted stocks of the Nikkei average, semiconductor-related stocks such as Laser Tech <6920>, Advantest <6857>, and Softbank Group <9984> were bought, and the rise of financial stocks such as MS&AD <8725>, Mitsubishi UFJ <8306>, T&D Holdings <8795>, Tokio Marine <8766>, Mitsui Sumitomo <8316>, and Mizuho <8411> also stood out. In addition, Sumitomo Pharma <4506> and Ebara Corporation <6361> were bought.
On the other hand, Hino Motors <7205> was sold due to negative views in reports from securities companies, and stocks such as Shiseido <4911>, Kao <4452>, Nidec <6594>, and Omron <6645> which were implementing structural reforms at their feet also showed a slight decline. In addition, Sharp <6753>, NEC <6701>, and Olympus <7733> were sold. By industry, insurance, banking, securities and commodity futures trading, marine transportation, and wholesale trades rose, while electric and gas utilities, air transportation, pulp and paper, foods, and retail trade declined.
By exchange-traded stocks in the Nikkei average, shares of some semiconductor-related stocks, such as Laser Tech <6920>, Advantest <6857>, and Softbank Group <9984>, were bought, and buying of the rise of financial stocks such as MS&AD <8725>, Mitsubishi UFJ <8306>, T&D Holdings <8795>, Tokio Marine <8766>, Mitsui Sumitomo <8316>, and Mizuho <8411> also stood out. In addition, Sumitomo Pharma <4506> and Ebara Corporation <6361> were bought. On the other hand, Hino Motors <7205> was sold due to negative views in reports from securities companies, and stocks such as Shiseido <4911>, Kao <4452>, Nidec <6594>, and Omron <6645> which were implementing structural reforms at their feet also showed a slight decline. In addition, Sharp <6753>, NEC <6701>, and Olympus <7733> were sold.
By industries, the insurance, banking, securities and commodity futures trading, marine transportation, and wholesale trade sectors rose, while the electric and gas utilities, air transportation, pulp and paper, foods, and retail trade sectors declined.
As for exchange rates, the yen weakened and dollar strengthened to the 161.20 yen level around 10 a.m. It is speculated that there was a strong demand for dollar buying at the timing of the 10:00 a.m. fixing, but there are also voices saying that the dollar was bought as the view that Trump was ahead in the first TV debate for the upcoming presidential election in the United States became stronger. In addition, it was reported that Mr. Mimura, the head of the International Bureau, succeeded Mr. Kanda, who had taken the lead in exchanging rates, which was also a material that strengthened the yen's downward trend.
As the foreign exchange market continues to move in the direction of a weak yen and a strong dollar, caution is growing in the afternoon against government and Bank of Japan intervention in buying yen and selling dollars. The Nikkei average and TOPIX are likely to be sensitive to exchange rate trends.