The Nikkei average continued to rise for the sixth consecutive day. It closed the morning session at 41,051.49 yen (+0.34%) higher than the previous day, with an estimated trading volume of 0.8 billion shares. In terms of product structure, the operating income of products worth 10-30 billion yuan was 401/12.88/0.06 billion yuan respectively.
The US stock and bond markets were closed due to Independence Day on the 4th. The exchange rate was bought up to 161.33 yen per dollar before temporarily dropping to 160.95 yen and ending trading at 161.24 yen.
With no noticeable trading materials due to the closure of the US market, the Tokyo market started trading on a slightly bullish tone. While the Nikkei average witnessed scenes of updating its all-time high during the trading hours due to the waves of hitting the highest points from the previous day, TOPIX was slightly down, and proactive buying was kept in check prior to the release of tonight's US employment statistics.
Among the listed stocks in the Nikkei average, Kawasaki Heavy Industries <7012>, which was sold yesterday, rebounded. Mitsukoshi Isetan <3099> was also bought on the basis of a positive report by a domestic securities company. In addition, semiconductor stocks such as Screen HD <7735>, Socionext <6526>, and Tokyo Electron <8035> rose. Also bought were IHI <7013>, Mitsubishi Electric <6503>, ZOZO <3092>, and Daiichi Sankyo <4568>, among others.
On the other hand, marine transportation stocks such as Nippon Yusen <9101>, Mitsui O.S.K. Lines <9104>, and Kawasaki Kisen <9107> were sold, and automobile stocks such as Honda <7267>, Nissan <7201>, and Mazda <7261> were uneventful due to the moderation of the yen's depreciation and the dollar's appreciation. Furukawa Electric <5801>, Mitsui Chemicals <4183>, and Sumitomo Electric Industries <5802> were also sold.
In terms of industry sectors, mining, pharmaceuticals, services, retail trade, electric appliances and others rose, while marine transport, electric and gas industry, textiles and apparels, transportation equipment, nonferrous metals and others declined.
As we approach the announcement of the June US employment statistics tonight, the afternoon Tokyo market is expected to take a wait-and-see attitude, and both the Nikkei average and TOPIX are likely to see a pause in buying. With both indexes having achieved their all-time highs, there may also be a feeling of accomplishment. In the lead-up to the French election this weekend, there is a possibility that profit-taking selling of rising stocks such as Mitsubishi Heavy Industries <7011> and Hitachi <6501> may increase, but this is a temporary adjustment and there is no need to be overly pessimistic.