In trading five days ago, there are three points to note.
Regarding individual responses based on financial results
Nintendo's Q1 operating profit decreased by 70.6% to 54.5 billion yen
Morning attention topics: DMG Mori Seiki, consolidation of five ball nuts processes into one machine, productivity increased by more than 20%
Regarding individual responses based on financial results
In the Japanese stock market on the 5th, amid a growing bias towards the downside, it is likely to search for short-term bottoms. On the US market on the 2nd, the NY Dow fell 610 dollars and Nasdaq fell 417 points. In July's US employment statistics, non-farm payrolls increased by 114,000 people compared to the previous month, falling below expectations of around 175,000 people. While speculation grows for a rate cut, there were widespread sales to guard against recession. Amazon.com experienced a significant downturn as sales estimates fell short of expectations. Nikkei 225 futures closing price in Chicago was 34,950 yen, 970 yen lower than Osaka. The yen exchange rate is hovering around 146.30 yen per dollar.
Starting with selling pressure from hedging against Chicago futures, it is likely to begin with a selling bias. Last week, the Nikkei Average recorded a record decline and fell below 36,000 yen. As it has rapidly fallen to a 52-week line, it is easy to be aware of overselling. However, the Nikkei 225 futures fell below the 52-week line in the night session and dropped to 34,350 yen. As the bias towards the downside strengthens, it may be difficult to buy on dips even though shorts for hedge are likely to be piled up in the futures market, despite being aware of overselling.
In the US market on the 2nd, earnings for large tech shares such as Amazon were heavily sold off, and Intel plunged more than 26%. Nvidia is also reported to be investigated by the US Department of Justice antitrust authorities, and there are concerns that the next AI semiconductor will be delayed due to design flaws, according to insiders. There is also concern for the possibility of increasing adjustment for high-tech stocks, and large value impacts may become a burden for high-tech stocks such as index ETFs.
As for targeting, it seems to be individual response based on financial results. Even in stocks that announced good financial results, there was a tendency to be sold off during last week's downturn, but a reevaluation is expected in situations where the immediate bottom is being conscious. In addition, on the closing of trading on the 2nd, eyes are on Sanrio <8136>, Sumitomo Mitsui <8316>, Minebea <6479>, Celcis <3663>, NID <2349>, NIC <5742>, LINE Yahoo <4689>, Gurunavi <2440>, NTN <6472>, Nihon Avio <6946> etc. By the way, there is also a possibility that the Nikkei Average Stock Price is conscious of a bottom hitting with 52-week line breaking, and in the short-term, it seems likely to guide to a self-rebound stance.
Nintendo's Q1 operating profit decreased by 70.6% to 54.5 billion yen
Nintendo Co Ltd <7974> announced its first quarter performance for the March 2025 fiscal year, with revenue of 246.638 billion yen, a decrease of 46.5% compared to the same period last year, and operating profit of 54.51 billion yen, down 70.6% year-on-year. Sales of 'Nintendo Switch' decreased. In addition, last year there was an effect of revenue from popular titles such as 'Tears of the Kingdom' for Switch and the movie 'The Super Mario Brothers Movie', so the reaction came out this time.
Materials of concern in the morning session
Long-term US interest rates fell.
Expectations for inflation to ease in the US.
Active share buybacks
Request for improvement in corporate value by the Tokyo Stock Exchange.
-DMG Mori Seiki <6141> Consolidates five ball screws processes into one machine, increasing productivity by more than 20%
-Sony G <6758> Semiconductor laser shipments are good and contribute to increasing data center storage
-Japan Airlines <9201> demonstrated environmental value trading with Narita Airport and Itochu and other 7 companies, reducing greenhouse gases with SAF
-Mitsubishi UFJ <8306> Mitsubishi UFJ Bank invests 63.3 billion yen in Philippine company and expands fintech
-Kyocera <6971> Kyoto Sangyo University and PhotoCross have concluded a comprehensive agreement in the astronomical and space fields, and are at the forefront of technology for the Araki telescope
-Nippon Catalyst <4114> SAP expansion, investment of 16.4 billion yen in Indonesia
-Gunze <3002> Basic agreement with Horison, transfer of mechatronics business
-Honda <7267> New "Freed" cumulative orders of 0.038 million units, six times the planned sales in one month
-Toyota <7203> Requests for abolition of preferential treatment for HV, intensifying competition with Tata and others
-Mitsui E&S <7003> Receives crane order for port cargo handling, 21 units in Vietnam
-FUJI <6134> Waste sorting robot, automatic removal of debris impurities, AI has the same or higher speed as humans
-KDDI <9433> Establishes new data center in Tokyo and Tama to prepare for AI-related expansion
-Panasonic HD <6752> Number of Nano-e devices shipped doubles in 30 years, more than half of which are for in-vehicle use
-Obayashi Corporation <1802> Develops seedling production system, optimizes combination of artificial light and natural light
☆ Schedule of events in the morning session
Not applicable.
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- At 10:45, China Caixin services PMI for July (financial estimates: 51.5, June: 51.2).