In trading five days ago, there are three points to note.

Despite a thin market, the market is expected to have a strong upward trend.

Kewpie Corporation revised its earnings forecast upwards for the November 2024 fiscal year, increasing revenue from 480 billion to 486 billion yen and operating profit from 31 billion to 34 billion yen. This was due to higher-than-expected sales growth in each segment of retail, business, and overseas markets, as well as corresponding improvements in profits. The company also revised its dividend forecast, increasing the period-end dividend forecast from 27 yen per share to 31 yen per share, an increase of four yen. (The annual dividend will increase from 50 yen to 54 yen.)

Morning attention: GSI Creos expands dialysis equipment sales in Central and South America and integrates it with clinics.

Despite a thin market, the market is expected to have a strong upward trend.

Although the Japanese stock market on the 5th of this month seems to be stuck in a stalemate, the market has a strong expectation of an upward trend. The U.S. market was closed on the 4th due to Independence Day, which limits foreign inflows. The Nikkei Stock Average has risen for five business days in a row, breaking its all-time high since March 22nd, so the market is likely to be aware of the immediate sense of achievement. Amid caution over overheating due to the rapid increase, it is likely that selling for profit-taking will become more frequent. On the other hand, it has been observed that index buying of Nikkei Stock Average models has been intermittently entered in the afternoon this week. Yesterday, SoftBank Group<9984> entered the market in the afternoon and momentum strengthened, reaching the all-time high it set during the IT bubble of February 2000. Through index buying, high-impact values ​​are pulling high-tech stocks towards the Nikkei Stock Average. Amid limited foreign inflows, if the flow of funds related to the index continues, a strong trend is expected to continue. However, while caution is being taken against overheating due to the rapid rise, there is also a possibility that the influx of funds such as funds that have missed the purchase while the Nikkei Stock Average is hitting a new high will increase. Therefore, if the situation continues where clear adjustments are not made, it is expected that buy-on-dips and other opportunities will be sought with higher entry timings.

Next week, there is expected to be selling demand to liquidate positions related to the distribution of distribution money for passive ETFs. Although there is no proactive upward momentum due to caution against this selling, buyers are also likely to refrain from buying towards this demand. In addition, after the holiday, the announcement of June's U.S. employment statistics is imminent, but a slowdown in the growth of the number of employees and wages is expected, which could push forward early interest rate cuts by the U.S. Federal Reserve Board (FRB).

On the other hand, while caution is still being taken against overheating due to the rapid rise, there is also a possibility that funds such as those missing out on purchases due to the Nikkei Stock Average hitting a new high will increase their inflows. Therefore, if the situation continues where clear adjustments are not made, it is expected that buy-on-dips opportunities and the like will be sought with higher entry timings.

The following is a list of passive ETFs with their distribution of dividends at the end of next week causing an expected selling demand. Although there is no proactive upward momentum due to caution against this selling, buyers are also likely to refrain from buying towards this demand. In addition, after the holiday, the announcement of June's U.S. employment statistics is imminent, but a slowdown in the growth of the number of employees and wages is expected, which could push forward early interest rate cuts by the U.S. Federal Reserve Board (FRB).

With the awareness of the decline in long-term interest rates due to the results of U.S. employment statistics, there is a strong buying interest in pullbacks for high-tech stocks, etc. In addition, in the domestic economy, the business community has already expressed concern about the over-weakening of the yen and is recognizing a need to urgently send a message of raising interest rates. Amid expectations of policy changes by the Bank of Japan, there is also a strong tendency to look for financial sector stocks.

Kewpie Corporation revised its earnings forecast upwards for the November 2024 fiscal year, increasing revenue from 480 billion to 486 billion yen and operating profit from 31 billion to 34 billion yen. This was due to higher-than-expected sales growth in each segment of retail, business, and overseas markets, as well as corresponding improvements in profits. The company also revised its dividend forecast, increasing the period-end dividend forecast from 27 yen per share to 31 yen per share, an increase of four yen. (The annual dividend will increase from 50 yen to 54 yen.)

Kewpie Corporation revised its earnings forecast upwards for the November 2024 fiscal year, increasing revenue from 480 billion to 486 billion yen and operating profit from 31 billion to 34 billion yen. This was due to higher-than-expected sales growth in each segment of retail, business, and overseas markets, as well as corresponding improvements in profits. The company also revised its dividend forecast, increasing the period-end dividend forecast from 27 yen per share to 31 yen per share, an increase of four yen. (The annual dividend will increase from 50 yen to 54 yen.)

Materials of concern in the morning session

The Nikkei average rose (40,913.65, +332.89).

The night session Nikkei futures in Osaka rose (40,910, +20 compared to Osaka daytime).

Expectations for inflation to ease in the US.

Request for improvement in corporate value by the Tokyo Stock Exchange.

GSI Creos expands its sales of dialysis equipment and integrates it with clinics in Central and South America.

JR Kyushu cooperates with SkyDrive to commercialize the flying car business.

NTT DOCOMO to increase its "Sub 6" area in the Kanto region by 30% this fiscal year to improve communication quality.

Honda Motor Co.<7267> sells its shares worth 500 billion yen owned by the company, to four insurance companies and Mitsubishi UFJ Financial Group.

Fellowtec Holdings withdraws its application for listing its holding company.

The bankruptcy proceedings of MSJ Asset Management, a subsidiary of Mitsubishi Heavy Industries<7011>, has started.

Goldwin Inc.<8111> and Mitsubishi Corporation and others form a supply network of polyfibers made from CO2-derived raw materials.

Koichitransport Co.<9025>, Suntory Holdings and Daikin Industries, among four companies, have started double-linked truck transportation.

Toyota Tsusho Corp.<8015> analyzes electrocardiogram data remotely and provides reports to medical institutions.

- Honda <7267>: New car sales from January to June, N-BOX ranked first for three consecutive years, and the only model to sell more than 0.1 million units.

- Hitachi <6501>: Success in observing the magnetic field of a lattice surface, and developing a method for non-uniform samples.

- Sumitomo Chemical <4005>: Strengthening pharmaceutical business, including development and manufacturing outsourcing, regeneration, and cell medicine.

- Toray Industries Inc. <3402>: Improving luminance and durability for scintillator panels used in non-destructive X-ray inspection.

- JFE Steel of JFE Holdings <5411>: Supporting digital transformation of Indian steelmaking by reproducing a blast furnace in a virtual space.

- TEPCO <9504>: Partnership with Kokko Shisetsu and three other companies for reuse and recycling of discarded solar panels for power generation.

- Tohoku Special Steel <5484>: 26 billion yen in revenue for fiscal year 2026 according to the new mid-term plan.

☆ Schedule of events in the morning session

08:30 May household spending (year-on-year estimates: +0.3%, April: +0.5%).

Not applicable.