In the afternoon of the 30th trading, there are three points that need attention:
- The Nikkei average fell back and the Bank of Japan meeting was approaching, leading to a buyer hold-back mood.
- The dollar/yen is firm with buyback of dollars.
・The top contributors to the decline are Fast Retailing <9983> and Toshiba Corp. <8035>.
- The Nikkei average fell back and the Bank of Japan meeting was approaching, leading to a buyer hold-back mood.
The Nikkei Average is down. It ended the morning session in Japan at 38,101.24 yen, down 367.39 yen (-0.96%) from the previous day's trading volume of around 760 million shares.
The US stock market was mixed on the 29th. The Dow Jones Industrial Average fell 49.41 dollars (-0.12%) to 40539.93 dollars, the Nasdaq rose 12.32 points (+0.07%) to 17370.20, and the S&P500 rose 4.44 points (+0.08%) to 5463.54. Buying continued to be driven by strong corporate earnings at the opening, but the market was mixed as the release of important economic indicators was not forthcoming and caution was heightened due to the upcoming Federal Open Market Committee (FOMC) meeting, leading to selling pressure and a downturn in the Dow Jones. The Nasdaq benefited from strong expectations for the earnings of major high-tech companies, which kept the market stable.
In the midst of a fluctuation in US stocks as they rose and fell, the Tokyo market opened with a dominant selling trend. The Nikkei Average remained in the 38,000 yen range, but given that the Bank of Japan's monetary policy meeting was to be held from today until tomorrow, cautionary sentiment has increased and bargain-hunting has been limited. As a result, the trend has steadily worsened, with more than 80% of all stocks on the main Prime board recording a decline and the market being completely bearish.
Among the Nikkei Average constituent stocks, Komatsu (6301) was sold on account of a slowdown in the growth of first quarter earnings, and Rakuten Group (4755), which postponed the reorganization of its financial business group from October of this year to January of next year, also fell. In addition, bank stocks such as Shizuoka FG (5831), Chiba Bank (8331), Fukuoka Financial G(8354), and Mitsui Sumitomo (8316) failed to gain any traction due to the decrease in interest rates. In addition, Shionogi & Co., Ltd. (4507), Disco Corp. (6146), Socionext Inc. (6526), and Nitori Holdings Co., Ltd. (9843) were sold.
FANUC Corp. (6954) saw buying on earnings success that exceeded expectations for the first quarter. In addition, real estate stocks such as Mitsui Fudosan Co., Ltd. (8801), Sumitomo Realty & Development Co., Ltd. (8830), and Mitsubishi Estate Co., Ltd. (8802) were strong due to the decline in interest rates. Moreover, Omron Corp. (6645), Chugai Pharmaceutical Co., Ltd. (4519), NSK Ltd. (6471), Sony Group Corp. (6758), and Nissan Motor Co., Ltd. (7201) were strong.
In terms of global sectors, mining, banks, machinery, metal products, and textiles & apparels fell, with only the two sectors of real estate and transportation equipment rising.
Although the exchange rate is slightly moving at 153.90 yen/dollar, the benchmark for long-term interest rates, the yield on 10-year government bonds, has fallen to 1.015%, dropping for the fourth consecutive day. With the announcement of the results of tomorrow's Bank of Japan meeting approaching, there is a growing sense of tension in both the foreign exchange and interest rate markets. In the afternoon of the Tokyo market, although the focus will be on the foreign exchange and interest rate markets, there may be a scene where the Nikkei average falls below 38,000 yen as there is reluctance to actively buy on dips.
- The dollar/yen is firm with buyback of dollars.
In the morning of the 30th, the dollar/yen was firm in the Tokyo market. After the Nikkei average stock price rebounded the previous day, it once again became soft, and with yen buying leading due to concerns about the Japanese stock price decline, buying back of dollars occurred due to a sense of undervaluation, resulting in an increase to around 154 yen. It's difficult to sell the dollar in anticipation of the Federal Open Market Committee (FOMC).
The trading range so far is as follows: the dollar/yen is 153.61-154.25 yen, the euro/yen is 166.18-166.88 yen, and the euro/dollar is 1.0814-1.0823 dollars.
Check stocks for the afternoon session
- Three stocks, including Zidat <3841> and WAS House <6537>, hit the upper limit.
*Includes temporary stopper (indicated price)
・The top contributors to the decline are Fast Retailing <9983> and Toshiba Corp. <8035>.
Economic indicators and remarks by important people
[Economic indicators]
- Japan's unemployment rate in June: 2.5% (expected: 2.6%, May: 2.6%)
- Japan's June job availability ratio: 1.23 times (expected: 1.24 times, May: 1.24 times)
[Important Person's Remarks]
- US Treasury
"The expected amount of borrowing required by the federal government in the July-September period has been revised downwards to $740 billion (from $847 billion as of April 29), and the expected amount for the October-December period is $565 billion.
- Bank of Japan monetary policy meeting (until the 31st)
- Federal Open Market Committee (FOMC, until the 31st)