In the morning trading on the 11th, the following three points deserve attention.

· Strong market development led by high-tech

Saizeriya, Q3 operating profit increased by 182.0% to 10 billion yen

In a form of buying before selling, it seems that there is a strong support material for high-tech stocks as large-value index impact stocks such as Tokyo Electron <8035> and Advantest <6857> in the trade due to US market's rise led by semiconductor stocks such as Nvidia. The reaction of Arm Holdings, which rose more than 2%, will also be watched as Softbank G <9984>. It is also reported that Apple is aiming to ship at least 90 million units of the "iPhone 16" in the latter half of this year. It is said that the target is to increase by about 10% compared to the previous model, and the search for Apple-related stocks such as TDK <6762> and Murata Manufacturing <6981> is expected to strengthen.

· Strong market development led by high-tech

In the Japanese stock market on the 11th, we can expect a strong market trend led by high-tech while being wary of overheating. On the 10th US market, NY Dow rose $429 and Nasdaq rose 218 points. Powell, chairman of the Federal Reserve Board (FRB), also suggested in his testimony to the lower house that the conditions for interest rate cuts are coming together, although he did not give a clear timing, leading to a sense of relief in buying. Nasdaq updated their record high for the seventh consecutive day, with semiconductor stocks such as Nvidia leading the market. In Chicago, the Nikkei 225 futures settlement price was 42,470 yen, which was 530 yen higher than Osaka. The dollar/yen exchange rate is hovering around 161.60 yen.

In the form of buying before selling, it is expected that after buying ahead of the market, the major weight of index impacts such as Tokyo Electron <8035> and Advantest <6857> will become materials for support of high-tech stocks, which rose due to the rise in semiconductor stocks such as Nvidia in the US market. Arm Holdings also rose by more than 2%, and the reaction of Softbank G <9984> is also being watched. It is also reported that Apple is aiming to ship at least 90 million units of the "iPhone 16" in the latter half of this year. The target is said to be an increase of about 10% compared to the previous model, and the search for Apple-related stocks such as TDK <6762> and Murata Manufacturing <6981> is expected to strengthen.

The Nikkei Stock Average has continued its strong trend since the beginning of the second half of the fiscal year, and there is a tendency to be wary of overheating. However, foreign funds are believed to have continued to flow in daily, and it was in a form of absorbing selling demand for the purpose of distribution of ETF settlement. It is considered that the inflow of funds from funds that are late to buy due to the rapid rise is likely to increase, and the buying desire to wait for a dip is strong. Therefore, although it is necessary to be wary of overheating, it is recommended to avoid trading in the form of selling triggers.

The Nikkei Stock Average is forming a trend along the +2σ and +3σ of the Bollinger Band, but in a situation where the band is expanding, it is difficult to determine the peak sensation. The area around 41530 yen where +2σ is located is likely to be conscious as support line, and +3σ, which is targeted, has been expanded to around 42550 yen. After starting with a buy order, there is a possibility that the sense of strength and weakness will be in conflict, but it is desirable to aim for a dip in the afternoon while assuming that there will be intermittent buying of indices.

Saizeriya, Q3 operating profit increased by 182.0% to 10 billion yen

Saizeriya <7581> announced its third quarter results for the August 2024 fiscal year, with revenues of ¥163.27 billion, a 23.6% increase from the same period last year, and operating profits rising 182% to ¥10.065 billion. In Japan, improvements in employee staffing rates, store organization, menu strategies, and the effects of DX utilization have led to an increase in customer numbers and average customer spending at existing stores. In Asia, the company has continued to expand with new store openings resulting in an increase in store numbers. The financial forecast for the August 2024 fiscal year remains unchanged from the February plan which was revised to forecast a 15.1% rise in revenue compared to the previous period, to 211 billion yen and an increase of operating profit by 81.4% to 13.1 billion yen.

Materials of concern in the morning session

The Nikkei average rose (41831.99, +251.82)

The NY Dow Jones Industrial Average rose (39721.36, +429.39)

The NASDAQ Composite Index rose (18647.45, +218.16)

1 dollar = 161.60-70 yen

Chicago Nikkei futures rose (42470, Osaka +530)

The SOX index rose (5904.54, +139.34)

US crude oil futures rose (82.10, +0.69)

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.

· SAFUSE <4892> freeze 3D cells without damage, Iwatani Industry, new technology for regenerative medicine

· KDDI <9433> enters storage battery business with Tokyo Electric Power in the latter half of next year, and plans to build large-scale equipment in Tochigi

· Panasonic HD <6752> EW Networks, expanding building facility management and security sales to 1.2 times the fiscal year 27

· Japan Animal Advanced Medical Center <6039> develops dog walking app with Aioi Nissay Navi Time

· Shirai yosha <9731> and Sumitomo Corporation, and the same-day laundry service with pickup request by LINE

Yamaha Motor <7272> is verifying the use of hydrogen gas for casting at its Morimachi factory

· Takuma <6013> wins a garbage treatment facility order worth 7.25 billion yen from Amagasaki City

Omron <6645> invests in iCARE to enhance the utilization of health data

Casio <6952> utilizes medical digital cameras to support dermatological diagnosis AI services

NEC <6701> introduces digital employee badges and face recognition/service collaboration

Fuji Electric Co., Ltd. <6504> designs an approval route for electronic approval services that is easy to set up.

Sony Group Corp <6758> establishes a new company for licensing the game 'Palworld'.

Mitsubishi Electric Corporation Unsponsored ADR <6503> collaborates with US Northrop Grumman Corporation to provide defense equipment to Japan and the US.

Nikon Corporation Spons <7731> reduces the number of steps in sperm insemination by 75% with a microscope for infertility treatment from Nikon Solution.

President Tetsuya Shimizu of Daido Special Steel <5471> invests 30 billion yen in high-alloy strengthening.

Kajima Corporation <1812> automates the 'push-forward' process for mountain tunnel construction.

Toa Construction Co.,Ltd. <1885> streamlines the precast construction process for port construction.

Tokuyama Corporation <4042> will raise prices on its functional urethane products next month.

Asahi Kasei Corp. <3407> capitalized on its intangible assets across the company by monetizing its technologies.

Mitsubishi Chemical Holdings Corp. <4188> supplies Biopla to Nakabai Chemical Co., Ltd. for ocean biodegradable straws.

AREIT ETF of Nomura Real Estate Holdings, Inc. <3231> establishes a biodiversity policy to promote natural regeneration.

Nippon Steel Corporation <5401> renews its oil well pipe supply contract with a Norwegian company.

JX Metals Co., Ltd. of ENEOS Holdings, Inc. <5020> sells its China-based precision processing company.

☆ Schedule of events in the morning session

08:50 May core machine orders (forecast month-on-month: +0.8%, April: -2.9%)

Not applicable.