In the morning session of the 30th day of trade, we want to focus on the following three points.

・Individual response based on earnings as a clue while waiting for the Japan-US financial events to unfold.

・FANUC, 25/3 upward revision, operating profit 143 billion yen ← 121 billion yen.

・Points of interest in the morning session: Tsubakimoto Chain, automatic sorting using AI image recognition, supplying systems to Senco.

・Individual response based on earnings as a clue while waiting for the Japan-US financial events to unfold.

In the Japanese stock market on the 30th, a stalemate market is expected while waiting for the results of the Japanese and American monetary policy meetings. On the 29th, the US market saw the NY Dow fall 49 points and the Nasdaq rise 12 points. Ahead of the Federal Open Market Committee (FOMC), active trading was restrained and individual stock picking based on earnings became the focus. The Chicago Nikkei 225 futures settlement price was ¥38,330, down ¥120 from Osaka. The exchange rate of the yen is hovering around ¥154 to the dollar.

It is expected to start with some selling pressure from the Chicago futures, as there was a rebound from the gap up of the previous day, and some buying is considered to have been piled up. Amid waiting for the results of the FOMC and the Bank of Japan's monetary policy meetings, profit-taking may be more likely. While the Nasdaq continued to rise, the influence of Tesla was significant. With the semiconductor stocks' weak price movements, it is likely that higher-value tech stocks will be a burden on the index's impact.

Yesterday's Nikkei average temporarily rose by over ¥1,000, and there were scenes where they were conscious of filling the gap (¥38,557-¥39,096) that was created during the sharp fall on the 25th. However, it seems that it was a place where short-selling aimed at waiting for a return was also likely to be entered as it approached the -1σ (¥38,882) of the Bollinger Band. It is expected that the policy interest rate will be kept on hold at the Bank of Japan meeting. With the recent significant drop in stock prices and the yen's appreciation, it is likely that there is no possibility of a rate hike. Nevertheless, until the results are ascertained, it is difficult to lean positions and will be in a stance of waiting for a pullback.

Therefore, funds aiming for short-term price fluctuations are likely to flow into a corner of small and medium-sized stocks that are less affected by trading related to indexes, in addition to individual responses based on earnings. The growth 250 index exceeded the 75-day moving average with the previous day's rise. If it is able to capture the 25-day moving average located around 659, the shift of funds is likely to intensify. In addition, companies that announced their earnings yesterday, such as Daihatsu Day <6023>, SBI Leasing Co., Ltd. <5834>, G Dining <7625>, Nisshin Zeon Co., Ltd. <4205>, FPG <7148>, Fanuc Corp. <6954>, Zenrin Co., Ltd. <9474>, Hokuriku Electric Industry Co., Ltd. <1930>, Kyowa Electric Machinery Co., Ltd. <6853>, and J-Group Co., Ltd. <3063>, are attracting attention.

・FANUC, 25/3 upward revision, operating profit 143 billion yen ← 121 billion yen.

Fanuc Corp <6954> announced a revision to financial estimates for the year ending March 2025, raising operating profit from 121 billion yen to 143 billion yen. This is higher than the consensus estimate (around 138.5 billion yen), reflecting stronger performance than expected, as demand for Roboshot (electric injection molding machine) in China and other areas performed well.

Materials of concern in the morning session

Nikkei Average rose (38,468.63, +801.22).

Nasdaq Composite Index rose (17,370.20, +12.32).

1 dollar = 154.00-10 yen.

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.

・Tsubakimoto Chain Co., Ltd. <6371> Automatic sorting using AI image recognition, system supplied to Senco.

・NTT <9432> Collaborates with emerging Southeast Asia, promotes 7 subsidiaries under its umbrella.

・NEC <6701> US Secretary of State visits NEC, expecting submarine cable development.

・Minebea Mitsumi Inc. <6479> Establish a joint venture in Thailand within the current fiscal year to expand procurement of renewable energy.

・GSI Creos Corp. <8101> President Naoki Yoshiaki aggressively targets emerging nations, aiming at semiconductor-related targeting in India.

・Rezonac HD <4004> Plant operation stabilization in Oita with Hitachi, digital infrastructure operation.

・Sharp Corp. <6753> Unauthorized access to online store, leaking personal information of 203 people.

・Isuzu Motors Ltd. <7202> Expands sales of pickups in Africa, up 50% in fiscal year 30.

・FANUC Corp. <6954> Resumes shipment of wire EDM machine for Europe.

・Yamazaki Mazak Corp. <6147> Additional mass-production lines for commercial vehicle engine parts.

・Poject Co., Ltd. <9264> Complete acquisition of iSs Sprinklers.

・Mitsumi Electric Co., Ltd. under the Mitsumi NMB Group <6479> Lightweight GNSS antenna element, heading for mass production in 26 fiscal year.

・NTT <9432> NTT DOCOMO Group joint venture established in Vietnam, participating in digital outdoor advertising.

Hitachi's <6501> new technology can identify AI-generated texts using electronic watermarks.

Hamamatsu Photonics <6965> completes construction of new semiconductor laser facility.

Maxell <6810> demonstrates reduced view-switching in information displays with NXHD and logistic trucks.

NEC <6701> supplies disease risk prediction services with blood tests to Thai hospitals.

NTT Data Group <9613> invests in metal fabrication in the UK.

Asahi Organic Chemicals <4216> invests 6 billion yen to expand semiconductor material manufacturing in new plant in Aichi.

Mitsubishi Estate <8802> responds to demand for refrigerated logistics facilities with new facility in Taiwan.

Mitsui Fudosan <8801> to collaborate with **** universities and institutions to build semiconductor park in Kyushu.

Amita Holdings <2195> expands in Kitakyushu, recycling liquid waste containing silicon.

AGC <5201> adopts ion exchange membrane for JAXA's test equipment.

Sumitomo Chemical <4005> registers herbicides for no-till farming in Argentina as agrochemicals.

☆ Schedule of events in the morning session

Unemployment rate for June to be announced at 8:30 (estimate: 2.6%, May: 2.6%).

Effective job openings ratio for June to be announced at 8:30 (estimate: 1.24, May: 1.24).

- Bank of Japan monetary policy meeting (until the 31st)

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