The Nikkei average rebounded for the first time in 9 days. It ended the morning session at 38,415.75 yen (approximately 0.8 billion 30 million shares traded), up 748.34 yen (+1.99%) compared to the previous business day.
The US stock market rose on the 26th. The Dow Jones Industrial Average closed at 40,589.34, up 654.27 points (+1.64%), the Nasdaq closed at 17,357.88, up 176.16 points (+1.03%), and the S&P 500 closed at 5,459.10, up 59.88 points (+1.11%). The market rose based on anticipated good earnings reports from major companies. After opening, buying began to increase. The PCE price index also stayed within expectations, confirming the trend of slowing inflation, and the market continued to rise on buying hopes for a rate cut later this year. There were also noticeable purchases on the expectation of a soft landing, leading to steady growth throughout the day.
Following the rise in the US stock market, the Tokyo market started trading with a preference for buying. The Nikkei average gradually expanded its gains, propelled by repurchases in the futures market after recovering the 38,000 yen range and rising to more than 1,000 yen compared to the previous business day to 38,719.70 yen. The exchange rate trended towards a strong yen and weak dollar, in which the dollar is about 50 yen weaker than compared to last weekend. However, at the time of the morning session, there was a rebound against the rapid decline.
Among the Nikkei average component stocks, Shinnetsu Chemical <4063> soared due to its first-quarter earnings surpassing expectations, while Fujikura < 5803>, Furukawa Electric <5801>, and SOMPO Holdings <8630> were bought due to a positive report from a securities company. In addition, Sumco <3436>, Mitsubishi Motors <7211>, IHI <7013>, Resona Holdings <4004>, TDK <6762>, Advantest <6857>, and Murata Manufacturing <6981> all rose. On the other hand, Eisai <4523> updated its record lows after receiving negative views on its dementia drug 'Lechanemab' in Europe, while Hitachi Construction Machinery <6305> was sold due to a double-digit decrease in the first quarter. Slightly bought due to earnings material, Screen HD <7735> was sold after one round of buying due to profit-taking sentiment. Additionally, Keyence <6861>, Panasonic HD <6752>, and Sony Group Corp <6758> fell.
As all sectors rose, insurance, non-ferrous metals, chemicals, real estate, and metal products saw noticeable gains.
Although the exchange rate is trending towards a strong yen and weak dollar, the dollar index remains at 103.9, with no significant trend observed. As the yen rises against major currencies such as the European and Oceanic currencies, speculative sellers continue to unload their yen positions. As the Bank of Japan's monetary policy meeting approaches, the afternoon in the Tokyo market will likely be affected by trends in the foreign exchange and interest rate markets. The 38,000 yen range seems likely to be maintained, but the market is expected to take a wait-and-see approach with a narrowing of the upward trend.
In the morning session, the Nikkei closed at 38,415.75 yen (approximately 0.8 billion 30 million shares traded), up 748.34 yen (+1.99%) compared to the previous business day. On the US stock market on the 26th, the Dow Jones Industrial Average rose 654.27 points (+1.64%) to 40,589.34, the Nasdaq rose 176.16 points (+1.03%) to 17,357.88, and the S&P 500 rose 59.88 points (+1.11%) to 5,459.10. All sectors rose, and there were particularly noticeable gains in insurance, non-ferrous metals, chemicals, real estate, and metal products.