In the morning of July 1st, there are three points to focus on in the trading:
Interested in the trends of the Financial sector.
Takashimaya revised its earnings forecast upward to 55 billion yen in operating profit from 50 billion yen.
Key attention for the morning: Ricoh, second example of launching an enterprise from outsourcing, support tools for management-level employees.
Interested in the trends of the Financial sector.
On July 1st, the Japanese stock market began with a buying lead and then gradually became deadlocked. On June 28th, the US market saw a drop of $45 in the Dow Jones Industrial Average and a drop of 126 points in the NASDAQ. The concern of a renewed acceleration in inflation has retreated due to the slowdown of the PCE Core Price Index in May, and the market has been supported by expectations of a rate cut by the Federal Reserve Board. However, the Dow Jones was weighed down by the fall of Nike, whose earnings were a disappointment. The NASDAQ reached a scene where it hit an all-time high, but after digesting the latest economic indicators, it turned to a decline. The Chicago Nikkei average futures were trading at 39,790 yen during the day, up 170 yen from Osaka. The yen was trading at around 160.80 yen to the dollar.
As it looks like futures are gathering momentum in Chicago, there may be some buying ahead. The Nikkei 225 futures were bought up to 39,960 yen in the night session. While there is a possibility that the overheating feeling towards last week's rise may become conscious, it is thought that the desire to buy on dips targeting the recovery to the 40,000 yen benchmark is strong. In addition, although major stock indexes in the United States fell, selling pressure due to the adjustment of position holdings at the end of the month and the end of the quarter may have had an impact. Therefore, the impact of the decline in U.S. stocks on the Tokyo market is likely to be limited.
The Nikkei stock average has clearly broken through the 13-week moving average that had been suppressing it since the sharp drop in mid-April, with a rebound after adjustment to the 26-week moving average, and the signal has improved. This week, in addition to the Independence Day holiday in the United States, the release of employment statistics is also scheduled for the weekend, so the flow of foreign funds may be limited from the middle of the week. Therefore, while it is unlikely that a big trend will emerge, buying back by sellers is likely to lead to a firm market.
In addition, JPMorgan and Goldman Sachs in the United States have expressed a cautious outlook for the future, making it difficult to expect aggressively bullish trends for high-impact indexes such as technology stocks, where profit-taking selling is likely to take place. On the other hand, with long-term interest rates rising according to the Bank of Japan's interest rate hike speculation, there is a high probability of interest in the financial sector such as mega-banks. In the United States, while each U.S. bank announced an increase in dividends with stress test approval by the Federal Reserve Board this year, bank stocks were bought on the 28th market in the United States, which is likely to be a clue to the financial sector.
Takashimaya revised its earnings forecast upward to 55 billion yen in operating profit from 50 billion yen.
Takashimaya, Inc. (8233) announced revised financial estimates for the fiscal year ending February 2025. The company increased its operating revenue from 497 billion yen to 511.4 billion yen and its operating profit from 50 billion yen to 55 billion yen. This reflects the strong performance of inbound sales at domestic department stores. The company's first quarter sales for the fiscal year ending February 2025 showed operating revenue of 120.125 billion yen, a 13.8% increase from the same quarter the previous year, and an operating profit of 17.295 billion yen, a 56.7% increase from the same period last year.
Materials of concern in the morning session
The Nikkei Stock Average rose (39583.08, +241.54)
The SOX Index rose (5472.26, +51.17)
Chicago Nikkei futures rose (39790, Osaka comparison +170)
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
Ricoh<7752>: second example of dispatching employees to launch an enterprise, support tools for management-level employees.
Toyota Motor<7203>: Customizing & Development in violation of subcontracts law, mold free storage.
Sumitomo Corporation<8053>: Dispersed Power Generation in the United States, 6 projects totaling 6.4 billion yen in investment.
Sony Group Corp<6758>: Cut 250 jobs at the Miyagi plant , reducing Blu-ray production.
Kobayashi Pharmaceutical<4967>: Reported 76 cases related to the damage status of Red Yeast Rice and deaths to the Ministry of Health, Labor and Welfare.
Toyota Motor<7203>: Full-scale linkage of accident data and vehicle data, including Toyota Fund, et al., academia, and governments.
Mitsubishi Heavy Industries<7011>: Investment in Canadian start-up to support commercialization of Zinc-air batteries.
Jun Ueno, President of Seiko Giken <6834>, is also mass-producing EV components in China.
Kawasaki Heavy Industries <7012> has delivered an LPG/ammonia mixed transport ship for LPG promotion.
Rorze <6323> acquires US NovaBios to develop advanced packaging manufacturing equipment.
Hitachi Construction Machinery <6305> starts verification of large full-electric dump truck at Zambian mine.
Amada <6113> is expanding in Europe through differentiation with laser technology.
Trusco Nakayama <9830> releases 'factory fan' with DC motor, reducing electricity costs by half.
SoftBank <9434> successfully demonstrates 'null-forming' technology.
Shimizu Construction <1803> removes 99% of organic fluorine compounds for soil remediation in the US.
Daito Trust Construction <1878> digitizes construction system ledger for small and medium-sized construction.
Kajima <1812> achieves level 4 with self-driving bus operation at mixed-use facility.
Shin-Nihon Electric Wire <5563> absorbs Chuo Denki, expanding resource utilization of incineration ash.
JX Metal, a subsidiary of ENEOS HD <5020>, aims for differentiation with thin-film materials.
☆ Schedule of events in the morning session
June Bank of Japan Tankan DI (Manufacturing) for Large Enterprises (Estimate: +11, March: +11) at 8:50 am.
June Bank of Japan Tankan DI (Non-Manufacturing) for Large Enterprises (Estimate: +33, March: +34) at 8:50 am.
June Bank of Japan Tankan for Large Enterprises Capital Expenditure (Year-on-Year Estimate: +13.8%, March: +4.0%) at 8:50 am.
China Caixin Manufacturing PMI for June (Estimate: 51.5, May: 51.7) in mid-morning.