In the afternoon trading on the 3rd, we want to focus on the following three points.
-The Nikkei Average rose for the 4th consecutive day, with Apple-related and semiconductor stocks leading the way.
-The dollar-yen is slightly lower, with a buyback of the dollar.
Australia's May retail sales: +0.6% (MoM estimate: +0.3%, April: +0.1%).
Nikkei Average continued to rise for the fourth day, led by Apple-related and semiconductor stocks.
The Nikkei Average continued to rise for the fourth consecutive day. It closed at 40,425.37 yen (approximately 840 million shares) in the morning trading, up 350.68 yen (+0.88%) from the previous day.
On the US stock market on the 2nd, the Dow Jones average rose 162.33 points (+0.41%) to 39,331.85, the Nasdaq index rose 149.46 points (+0.84%) to 18,028.76, and the S&P 500 rose 33.92 points (+0.62%) to 5,509.01 at the end of trading. While profits were taken as a precaution before the release of the June employment statistics for the weekend, which led to a decline in the opener, remarks by Powell, chairman of the Federal Reserve Board (FRB), that "inflation is again slowing down" led to a decline in long-term interest rates and supported the market, as well as major high-tech stocks like Amazon and Apple. The Nasdaq index and the S&P 500 reached new all-time highs.
On the Tokyo market, which was bolstered by the rise of US stocks, buying was dominant. Apple-related and semiconductor stocks continued to rise, and financial stocks such as insurance and banks, which had been the driving force behind Japanese stocks so far, showed some signs of slowing down. The Nikkei Average showed a stronger movement than the TOPIX. The transaction value of the prime market in the morning was 2.1 trillion yen, putting it in the 2 trillion yen range for consecutive days.
In the Nikkei Average adopted stocks, Apple-related stocks stood out, such as Solar Power <6976>, Murata Manufacturing <6981>, TDK <6762>, Kyocera <6971>, and Alps Alpine <6770>, due to the influence of Apple reaching a new all-time high. In addition, semiconductor stocks such as Screen HD <7735>, Renesas Electronics <6723>, Disco <6146>, SUMCO <3436>, Tokyo Electron <8035>, and Advantest <6857> were also bought. Defense-related Mitsubishi Heavy <7011>, IHI <7013>, Kawasaki Heavy <7012> also rose.
Meanwhile, insurance stocks such as Tokio Marine＜8766＞, MS & AD＜8725＞, and SOMPO Holdings＜8630＞, which had been rising strongly, fell, as did regional bank stocks such as Chiba Bank ＜8331＞, Shizuoka FG ＜5831＞, Fukuoka ＜8354＞, and Concordia ＜7186＞. Yokohama Rubber＜5101＞ and Bridgestone＜5108＞ were also lackluster.
By industry, machinery, marine transportation, chemicals, other financing, glass and stone products rose, while petroleum and coal products, rubber products, insurance, mining, and transportation equipment fell.
The afternoon Tokyo market is also expected to be dominated by high-tech shareholders and be in a favorable position for the Nikkei average, but trading in the afternoon is expected to be thin due to half-day trading before Independence Day in the US market tonight. The exchange rate has leveled off at around 161.60 yen per dollar, and the mood to carefully watch important US economic indicators tonight (ADP employment figures, trade balance, ISM non-manufacturing business index, FOMC meeting minutes, etc.) is growing stronger. From tonight to tomorrow the 4th, participation is expected to decrease due to US Independence Day holidays and others, so the exchange rate is likely to be quiet. There are also voices saying that the government and the Bank of Japan may intervene in the market to buy yen during the US holiday on the 4th, so further weakening of the yen and strengthening of the dollar in the afternoon is likely to be avoided.
The dollar-yen rate was slightly higher in the morning Tokyo market on the 3rd, rising from 161.39 yen to 161.64 yen. The drop in the US 10-year bond yield from the previous day has leveled off, and dollar buying has strengthened. On the other hand, the Nikkei average stock price has remained firm, and yen selling due to the favorable Japanese stock market has also supported the dollar.
The trading range so far is 161.39-161.64 yen for the dollar-yen rate, 173.47-173.69 yen for the euro-yen rate, and 1.0740-1.0754 dollars for the euro-dollar rate.
PRISM BioLab<206A>, Kasumigaseki Capital<3498> and 3 others have hit the daily price limit.
Check stocks for the afternoon session
The top contributors to the rising prices are Tokyo Electron<8035> in first place and Fast Retailing<9983> in second place.
*Includes temporary stopper (indicated price)
Australia's May retail sales: +0.6% (MoM estimate: +0.3%, April: +0.1%).
Economic indicators and remarks by important people
[Economic indicators]
China's Caixin Services PMI in June: 51.2 (forecast: 53.4, May: 54.0).
Powell, the chairman of the Federal Reserve Board (FRB), said, "Prices have begun to show signs of resuming a disinflationary trend," adding that "It would be desirable for more data like that seen recently to continue." He also suggested that the unexpected softening of the labor market could be a stimulus for action and that he could foresee inflation rates in the low 2% range a year from now.
[Important Person's Remarks]
14:00 BOJ: Supply-demand gap and potential growth rate.
Prices have started to show a deflationary trend again.
"It is desirable that the data recently observed will continue further"
"Unexpected softening of the labor market could be a trigger for action"
"We expect the inflation rate to be in the first half of the 2% range in one year"
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