In the morning session eight days ago, there were three points to pay attention to.
Determine the impact of selling demand related to ETF earnings.
Yaskawa Electric's Q1 operating profit decreased by 32.4% to 11.1 billion yen.
Highlighted materials in the morning session: Tokyo Electron and U.S. AITMATIC, semiconductor-focused AI platform, public.
Determine the impact of selling demand related to ETF earnings.
The Japanese stock market on the 8th is expected to start with buying due to the rise of US stocks, but the stalemate is likely to intensify after one round of buying. On the 5th, the NY Dow was up 67 dollars and the Nasdaq was up 164 points in the US market. Due to the slowdown of non-agricultural employment in the US employment statistics in June from the previous month, the expectation of a rate cut in September increased, and the decline in long-term interest rates was considered material. The settlement price of the Chicago Nikkei 225 futures was 41,035 yen, 175 yen higher than Osaka. The exchange rate of the yen is hovering around 160.70 yen against the dollar.
It is likely to start with buying due to the form of bringing in the soy bean futures in Chicago. The Nasdaq index has been updating its daily highs for four consecutive days and is likely to become a material for supporting technology stocks with big index impact. In the US, while Nvidia fell due to analysts downgrading, Arm Holdings rose by 7.7%, and Softbank G<9984> is expected to be bought.
However, caution is required for the overheat due to the rapid rise in the Nikkei Stock Average at the moment. Also, since it is today's financial results from the passive type ETF, it is expected that there will be selling demand in cash and futures in order to raise distribution profits. Last year, it also fell under the influence of this supply and demand, and it is a place where aggressive buying and selling is easily refrained. Since the ETF's financial results will be today and on the 10th, it is likely to be a stance to aim for dips until passing through this supply and demand influence.
However, the Nikkei Stock Average has continued its strong trend since the start of the second half of the year, and it has been observed that the Nikkei Stock Average type index has been intermittently purchased every day. Last weekend, the Nikkei Stock Average was bought up to 41,100 yen in the morning, even though the US market on the fourth was limited to overseas flow due to Independence Day. After one round of buying, it turned down, but it remained a small drop of 1.28 yen, showing the strength of buying interest waiting for dips. While being careful about the impact of selling demand related to ETF financial results, there is also a possibility that it will be a good time to buy on dips for funds that have been lagging behind in buying.
As for the variety, selling toward TOPIX type is likely to be noticed, and funds are likely to be directed to small and medium-sized stocks. Although the growth 250 index is conscious of the 75-day line as the upside resistance line, it has been rebounding since the middle of last week, and it has caught the line. If it shows a breakthrough of the resistance line, it is likely to lead to a short-term value-taking movement.
Yaskawa Electric's Q1 operating profit decreased by 32.4% to 11.1 billion yen.
Yaskawa Electric <6506> announced its first quarter performance for the February 2025 period, with sales revenue of 132.408 billion yen, a 7.1% decrease year-on-year, and operating profit of 11.118 billion yen, a 32.4% decrease year-on-year. Compared with the prior year period supported by a high level of order backlog, there was a decrease in revenue mainly in motion control. In the AC servo motor and controller business, demand for photovoltaic panel-related products decreased from the prior year period due to the prolonged effect of inventory adjustments in the semiconductor and electronic component market. For the February 2025 period, the initial plan is to maintain sales revenue at 580 billion yen, a 0.8% increase from the previous period, and operating profit at 70 billion yen, a 5.7% increase from the previous period.
Materials of concern in the morning session
The Dow Jones Industrial Average rose (39375.87, +67.87)
The NASDAQ Composite Index rose (18352.76, +164.46)
- 1 dollar = 160.70-80 yen.
The Chicago Nikkei futures rose (41035, Osaka ratio +175)
The SOX Index rose (5656.31, +4.59)
Long-term US interest rates fell.
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
Tokyo Electron <8035> announces the public announcement of a semiconductor-focused AI platform with AITMATIC in the United States.
Ibiden <4062> aims to produce EV battery safety components and achieve 10 billion yen in revenue.
Lintec <7966> aims to raise the skills of all researchers in mainland education and ensure that they are all qualified to perform digital transformation.
Hitachi Zosen <7004> falsified fuel consumption data on 1,364 marine engines.
Kanematsu <8020> cooperates with South Korea's largest charging gun manufacturer to sell 3,000 EV infrastructure components this year.
JR West Japan <9021> and JR East Japan plan to standardize vehicle parts on local railway lines to reduce design work and costs.
Welcia Holdings <3141> acquires TEPCO's nursing care subsidiary.
Daido Metal <7245> expands sales of non-automotive bearings, targeting ships and generators.
Aichi Steel <5482> demonstrates hydrogen combustion in a heat treatment furnace for steel materials at its Kariya plant.
Suzuki <7269> establishes a subsidiary to support social entrepreneurs in India.
Park24 <4666> expands the number of locations eligible for reservations made three months in advance through Times Mobility.
Sodick <6143> expands the sale of food machinery in Asia, targeting noodle and rice processing.
Takeuchi Manufacturing <6432> introduces automatic and optimized hydraulic excavator wheels weighing 7 tons.
Anritsu <6754> partners with ETS in the United States to sell OTA test systems for non-terrestrial IoT connections.
Kobelco Construction Machinery, a subsidiary of Kobe Steel Co., Ltd. <5406>, strengthens its presence in India and establishes a production base that rivals China's.
Hoshizaki <6465> offers meal reheating cabinets for elderly care facilities at a 40% discount in a compact size.
Mitsui Ocean Development Co., Ltd. <6269> collaborates with Terra Drone Corporation in drone inspections.
NTT Data Corp. <9613> Executive Vice President Kazuhiko Nakayama seeks to monetize data center assets.
Canon MJ Inc. <8060> invests in a startup focused on self-driving car development to create new businesses using AI.
Tanabe Consulting Group Co., Ltd. <9644> partners with Ricochet Corporation to support digital transformation for medium and small-sized enterprises.
Shin-Etsu Chemical Co., Ltd. <5563> increases its disposal capacity for waste incineration ash by 70% and recycles it as building materials.
JFE Holdings, Inc. <5411>'s subsidiary produces energy-saving power facilities in Himeji for electric arc furnaces, which will operate for 25 years.
Osaka Gas Co., Ltd. <9532> successfully tests a gas engine cogeneration system with 30% hydrogen mixed gas.
☆ Schedule of events in the morning session
8:30 a.m. May monthly labor statistics and cash earnings total (expected YoY: +2.1%, April: +1.6%).
8:50 a.m. May current account balance (expected: +2.35 trillion yen, April: +2.05 trillion yen).
Not applicable.