In the morning of the 24th trading, the following three points should be noted.

Nidec may also brighten sentiment

Nidec revised upwards on 25/3, operating profit 240 billion yen ← 230 billion yen

Nidec attracts attention in the morning session: Sales of 10 trillion yen in March 2031, driven by 5 businesses including AI

Nidec may also brighten sentiment

The Japanese stock market on the 24th seems to be in a strong stalemate. On the 23rd, the US market saw the Dow Jones Industrial Average fall by 57 points and the Nasdaq fall by 10 points. As earnings reports from major companies are beginning to be announced, there is an increasing desire to scrutinize their contents. In addition, while waiting for the results of important inflation and economic indicators scheduled for release this week, selling to adjust positions is dominant. The settlement price of the Chicago Nikkei 225 futures is 39,500 yen, 40 yen lower than in Osaka. The yen exchange rate is hovering around 155.60 yen per dollar.

It is likely to start with a slightly bearish tone as it is expected to be sold before the Chicago futures market. Alphabet, which announced its earnings after the US market closed, exceeded forecasts for revenue and earnings per share, but fell slightly in after-hours trading. Also, Tesla's earnings per share fell below expectations, causing a decline of over 6%. With the earnings season of US high-tech companies fully underway next week, active trading is likely to be held back.

Yesterday's Nikkei average started with buying but failed to capture the milestone of 400,000 yen and ended with a small decline in a sluggish market trend. While influenced by the fall of US stocks today, attention is likely to focus on Nidec <6594>, which announced its earnings after yesterday's closing bell, and if the company strengthens its rebound, it will likely brighten sentiment. As earnings reports in Japan and the US are fully underway, it is easy for individual stocks to become actively sought after based on earnings.

As the 25-day line of the Nikkei average is being considered as a resistance line, there is a possibility that the 75-day line located near 39,000 yen will gradually be taken into consideration. However, it is considered limited to make aggressive moves during the earnings season, and if there are moves to sell on futures-led attempts, it is likely to lead to a stance of targeting buying on dips anticipating rebounds.

In the US, although the SOX index fell, the drop in NXP Semiconductors had a large impact and was already priced in with a sharp decline in after-hours trading the day before. Nvidia also fell, but only slightly, and is currently in a rebounding trend with upward support. In Japan, although Tokyo Electron <8035> showed weak price movements, it has also shown stability at the 200-day moving average level, making it likely to wait for dips in high-tech stocks.

Nidec revised upwards on 25/3, operating profit 240 billion yen ← 230 billion yen

Nidec Corporation Sponsored ADR <6594> announced the revised financial estimates for the fiscal year ending March 2025. It upwardly revised the revenue from JPY 2.4 trillion to JPY 2.5 trillion and operating profit from JPY 230 billion to JPY 240 billion. The demand for server cooling systems for AI (Artificial Intelligence) generation is expanding. It also announced a stock split of 1 share to 2 shares as of the end of September.

Materials of concern in the morning session

・ The VIX index is down (14.72, -0.19)

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.

- Nidec <6594>: Sales of 10 trillion yen in March 2031, driven by 5 businesses including AI

- Nippon Steel <5401>: Dissolving JV with China Baowu, focusing on car steel plates, centered on the US and India

- Hitachi <6501>: Selling air conditioning joint venture to Bosch in Germany

- AIN HD <9627>: Amazon collaborates with 9 pharmacies for online medication guidance service

- Fujitsu <6702>: AI evaluation of safe forklift driving under flat-rate system, in collaboration with Toyota Industries

- Marubeni <8002>: Investing in nuclear fusion startups to create new businesses in decarbonization field

- Furukawa Electric <5801>: Selling lead-acid batteries to investment funds, revising business strategy

- NEC <6701>: Developing and testing drone routes, selected by NEDO and 4 other parties

- JTEKT <6473>: Verifying effective use of renewable energy, unveiling new facility

- JFE HD <5411>: Utilizing geothermal and hydraulic power for regional new power in Iwate with Yawatahama City and others through JFE Engineering

- Anritsu <6754>: 5G wireless frequency tester supports 2 certifications with 1 measuring instrument

- Mimaki Engineering <6638>: New model this fall with 90% reduction in drainage through transfer printing

- Hitachi Zosen <7004>: Demonstrating gasification of sewage sludge as fuel with NIMS G in Kagoshima City

- NEC <6701>: Utilizing LLM image analysis to grasp disaster situation, demonstrating in Tsukuba City

- Panasonic HD <6752>: Deepening presence in Asia with "Nanocare", aiming to lead market share with hair dryer

SanKen Electric <6707>: Mass production of high-capacity ICs for electrical utilities, strengthening noise countermeasures.

☆ Schedule of events in the morning session

Not applicable.

Not applicable.