In the morning session of August 1st trading, we want to pay attention to the following three points.
Targeting semiconductor stocks on dips.
Panasonic's operating profit for the first quarter decreased by 7.3% to 83.7 billion yen.
Focus of the morning session: Yuasa Shoji invests in Alpha TKG for exclusive sales in domestic and foreign markets.
Targeting semiconductor stocks on dips.
The Japanese stock market on the first day is expected to have a dip-buying trend led by semiconductor stocks after an initial selling circle. On July 31st, the US market saw an increase of 99 dollars in the Dow Jones Industrial Average and 451 points in the Nasdaq. The Federal Reserve Board (FRB) kept the policy interest rate as expected at the Federal Open Market Committee (FOMC). It was considered a significant factor that Fed Chairman Powell hinted at the possibility of a rate cut in September during the FOMC press conference afterward. In addition, there was a strong movement in the stock prices of high-tech stocks, such as Advanced Micro Devices (AMD), which were bought from an earnings appraisal. The clearing price of the Chicago Nikkei 225 futures was 38,655 yen, 575 yen lower than Osaka. The yen exchange rate is moving around 150 yen per dollar.
Starting with selling pressure from the Sya position in Chicago futures, it is expected to start with selling pressure. The Nikkei 225 futures sharply dropped at the beginning of the night session, and it was once sold to 38,390 yen. The dollar-yen exchange rate has temporarily broken through the 149 yen mark, and selling due to adjustments in positions due to the narrowing of the interest rate spread between Japan and the United States is likely to be cautious. On the other hand, in the United States, strong movements in semiconductor stocks were noticeable, such as Nvidia's rapid rise. It has been reported that the Biden administration is expected to exclude Japan, Korea, and the Netherlands from new export regulations against China, but there seems to be a strong desire to buy on dips.
Meta Platforms was bought in extended hours trading from stock appraisals, and significant values in the index could be easily used as leading materials for high-tech stock trends. Domestically, Advantest <6857> has announced upwardly revised earnings expectations and is likely to be evaluated. Therefore, although sales are likely to be ahead from the Saya position in the futures, the rebound momentum is likely to increase after the one-round of selling. However, against the backdrop of a strengthening yen trend due to the narrowing of the interest rate spread between Japan and the United States, it may be difficult to deal with export-related issues such as Toyota <7203>, and profit-taking selling of mega-banks may be easier after the Japanese and American financial events.
The Nikkei average has filled the gap left on July 25th plunge and recovered the 75-day average with a feeling of achievement. If it appears to be solid after a round of selling, there may be a move to break above the line. If the stalemate intensifies, the flow of individual cherry-picking based on earnings is likely to become, with Adavantest and other companies accounting for the last night's results. JR East<9020>, Hitachi<6501>, Konica Minolta<4902>, J-Power<9513>, Sumitomo Pharma<4506>, Sekisui Chemical<4204>, Nisshin Flour Milling<2002>, Epson<6724>, Nippon Special Ceramics<5334>, Yamazaki Baking<2212>, TOTO<5332>, Keisei<9009> and Nabtesco<6268> are likely to be the focus.
Panasonic's operating profit for the first quarter decreased by 7.3% to 83.7 billion yen.
Panasonic's net sales for the first quarter of fiscal 2025 were 2.121689 trillion yen, an increase of 4.5% from the same period of the previous year. Operating profit decreased by 7.3% to 83.761 billion yen, falling short of the consensus of about 94.2 billion yen. Lifestyle business posted sales of 868 billion yen (up 4% year on year), automotive posted sales of 363.6 billion yen (up 7% year on year), and Connect posted sales of 297.9 billion yen (up 13% year on year).
Materials of concern in the morning session
The Nikkei average rose (39,101.82, +575.87)
The Dow Jones Industrial Average rose (40,842.79, +99.46)
The Nasdaq Composite Index rose (17,599.40, +451.98)
The SOX index rose (5,233.18, +343.03)
The VIX index fell (16.36, -1.33)
US crude oil futures rose (77.91, +3.18)
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.
-Yuasa Shoji<8074> invests in Alpha TKG for exclusive sales in domestic and foreign markets.
-NTT<9432> NTT Com establishes IOWN base in Hokkaido, a semiconductor cluster.
-Toyota Motor<7203> issued correction orders by the Ministry of Land, Infrastructure, Transport and Tourism over type approvals for illegal practices, affecting seven models.
-Orix<8591> and Panasonic Connect establish new company for projectors.
-Sumitomo Dainippon Pharma<4506> looking for early retirement of 700 personnel; internal structural reform in Japan.
-TREHD<9247> and Mizuho Leasing establish new company in support of streamlining factories.
-Nikkak Chemicals<4463> invests 1.95 billion yen for new factory in Fukui City; cosmetic products to be tripled; operations to begin in 2027.
-IHI<7013> conducts improper testing for snow removal vehicles that could affect 10 models and 1,239 units.
-Aisin<7259> and BMW collaborate to produce ECUs in Europe and China.
-Isuzu Motors<7202> initiates EV-connected services in North America.
-Kawasaki Heavy Industries<7012> successfully mix 30% of hydrogen into gas engine at Kobe Plant, aiming to accommodate hydrogen combustion in the future.
-JGC Holdings<1963> increases investment in start-up from Kyoto University to employ perovskite application.
IHI <7013> is considering cooperation with a **** company for ammonia logistics.
NEC <6701> can accurately measure distant water levels with 3D LiDAR technology.
TKC <9746> will freely license the patent for its digital invoice journal entry generation.
Mitsubishi Chemical G <4188> is fully investigating waiting time for cargo and addressing logistics issues.
Kajima <1812> is automating excavation work to improve productivity and reduce labor.
Japan Zeon <4205> has a two-base system in Tokuyama and Mizushima for high-performance materials, axis, optical resin.
Toda Construction <1860> is exploring transportation routes for land-based wind power components using 3D and an AI system.
Daicel <4202> and Osaka University are developing silver-silicon joint materials for prolonging the life of SiC semiconductors.
☆ Schedule of events in the morning session
Not applicable.
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10:30 Australian Trade Balance for June (forecast: +5 billion Australian dollars, May: +5.773 billion Australian dollars).
10:45 China Caixin Manufacturing PMI for July (forecast: 51.5, June: 51.8).