There are three points to focus on in the trading session on the 22nd.

Selective search with an awareness of the Trump trade.

Thirty-one ice cream's operating profit in the 2Q increased by 89.0% to 1.521 billion yen.

Key points in the morning session: Iwata Sangyo, fraud in the inspection report at subsidiary facilities.

Selective search with an awareness of the Trump trade.

In the Japanese stock market on the 22nd, there is likely to be a movement to find a short-term bottom in an unstable market. On the 19th, the US market was down with the Dow Jones down 377 points and the Nasdaq down 144 points. There was a strong selling pressure due to the concern that the Microsoft Windows terminal malfunction caused chaos in the world economy, and there was also a mood to hold back and wait and see while earnings announcements were in full swing. The Chicago Nikkei 225 futures settlement price was 39,660 yen, 380 yen lower than Osaka. The yen is trading at around 157.20 yen to the dollar.

The selling is likely to start with a focus on selling due to the Chicago futures. The Nikkei 225 futures were sold down to 39,570 yen in the night session and clearly broke through the 0.04 million yen threshold. After the announcement that the cause of Microsoft's system failure had been identified and the service had been restored, it will be easy to enter a buyback phase, but at around 0.04 million yen, there may also be selling with an eye on waiting for a return. The Nikkei average stock price on the 19th was sold down to 39,824 yen in the morning and then consolidated around the 0.04 million yen level where the 25-day moving average is located. By breaking through this line, the 0.04 million yen level is likely to be perceived as a resistance line.

In addition, US President Biden has announced his intention to "withdraw" from the presidential election in November and is supporting Vice President Kamala Harris as his successor candidate. As the possibility of former President Trump's reelection increases, his future statements may have a significant impact on the market. Due to policy changes from the Biden administration, the target of selection may also change significantly, making it easier to select with an awareness of the Trump trade.

Therefore, it is easy to pay attention to the inflow of funds into resource-related and defense-related sectors. In addition, as earnings announcements are in full swing, there will be more focus on selection based on performance. It is also important to determine the bottoming out of semiconductor stocks, which are experiencing strong adjustments. However, there is a possibility of a situation where it is likely to be heavily influenced by Trump's statements. Therefore, short-term trading aiming for price fluctuations is likely to be the focus.

Thirty-one ice cream's operating profit in the 2Q increased by 89.0% to 1.521 billion yen.

31 Ice Cream announced that its sales revenue for the second quarter of the fiscal year ending in December 2024 was ¥14.198 billion, a year-on-year increase of 26.1%, and its operating profit was ¥1.521 billion, an increase of 89.0% year on year. Collaboration products and campaigns with popular characters were well-received. The company reduced the growth of sales cost by reducing raw material procurement costs and manufacturing costs.

Materials of concern in the morning session

Active share buybacks

Expectations for inflation to ease in the US.

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

Iwata Sangyo <8088>, subsidiary fraudulent inspection report on equipment

Obayashi Corporation <1802>, develops base in Singapore, promoting construction robotics

Yokohama Rubber <5101>, AI support for tire design, streamlining characteristic improvements

Kawasaki Heavy Industries <7012>, first public run of "hydrogen bike", with palpitations

Toyota Motor <7203>, Chairman Akio Toyoda launches "verification city"

Chiyo Kenzai <6366>, demonstration of imported hydrogen supply for fuel cell vehicles in Singapore

NTT <9432>, unique LLM "Tsuzumi", introduction consultation from over 650 companies

KDDI <9433>, night security for photovoltaic power plants with thermal camera-equipped drones

NEC <6701>, improved virtual PC environment, comfortable remote work

Kikusui HD <6912> Kikusui Electronic Industry releases a test compounding machine with three features: high voltage resistance, insulation resistance, and 10kV output.

AGS <3648> starts providing cloud services for detecting and notifying system failures.

Sekisui Chemical <4204> carries out a demonstration of perovskite with Cosmo Oil on petroleum facilities.

Mitsui Chemicals <4183> is making steady progress in DX achievements, improving research and development and production efficiency.

Mitsubishi Estate <8802> designs wooden buildings with 3D printing technology.

☆ Schedule of events in the morning session

Not applicable.

07:45 NZ, June Trade Balance (May: +0.204 billion NZ dollars).

10:15 China's one-year loan prime rate (currently 3.45%)