In the morning trading of 6th, we want to pay attention to the following three points.
A stance that is conscious of autonomous rebound against a significant decline.
ITOCHU's Q1 operating profit increased by 13.9% to 190.5 billion yen.
In the morning, an NTT DATA G employee increased the core system design staff by 700 people, 1.9 times more than in fiscal 2026.
A stance that is conscious of autonomous rebound against a significant decline.
On the 6th, the Japanese stock market is likely to take a stance that is conscious of autonomous rebound against recent significant decline, despite being unstable. On the 5th, the US market saw the Dow Jones Industrial Average fall by 1033 dollars, and the NASDAQ fell by 576 points. Sell-offs continued due to concerns about the economic recession following the US employment statistics for July released last weekend. Investor sentiment has rapidly deteriorated due to the decline in global stocks, and there has been a noticeable drop in high-tech stocks that have led the market so far. The settlement price of Chicago Nikkei 225 futures is 33,190 yen, up 1,810 yen from Osaka. The exchange rate is moving at around 145.10 yen per dollar.
It is likely to start with buying ahead of the curve from the form of soy sauce in Chicago futures. Yesterday's Nikkei average stock price became a record decline exceeding the decline during Black Monday. Even the US market at the beginning of the week has dropped significantly, and while the global stock decline continues, it is likely to be easier to aim for an autonomous rebound against the record decline. The transaction volume of Tokyo Stock Exchange Prime yesterday swelled to the 4 billion shares range, and there is a possibility that a selling climax may be recognized. In the foreign exchange market, it would be reassuring that the rapid appreciation of the yen has subsided, with current dollars trading at around 145 yen per dollar after hitting 1 dollar = 141 yen on the previous day.
In the US, the VIX index briefly surged to 65.73. Although the closing price was 38.57, it exceeds 20, which is easy to lead to risk avoidance. It is considered that rough price movements will continue until a clear bottom is determined, and it is cautious that hedge trading may be strengthened as a result. However, there is also a possibility of a selling climax in the US, and emergency rate cuts are also expected to increase before the FOMC meeting of the US Federal Open Market Committee in September.
Although optimism is difficult to maintain, yesterday saw a lot of selling off of megabank and major trading companies' stocks, leading to a rapid acceleration of the trend to compress holdings. This makes it easier to view the decline as irregular, and it's probably best to hope for a corrective rebound. Although many stocks were sold off despite good earnings reports, there is likely to be a renewed focus on earnings evaluations. In addition, the following companies were in the spotlight and announced their earnings after the close of business yesterday: ITOCHU <8001>, ORIX <8591>, Nippon Steel <5631>, GS Yuasa <6674>, UBE <4208>, Kikkoman <2801>, Alfredo's <2784>, Tsumura <4540>, Nagase Sangyo <8012>, Nippon Titanium <5727>, Hitachi Zot <7004>, Okuma <6103>, etc.
ITOCHU's Q1 operating profit increased by 13.9% to 190.5 billion yen.
ITOCHU <8001> announced that its first quarter (March 2025 fiscal year) revenues were JPY3.598918 trillion, up 7.5% year-on-year, and operating profit was JPY190.539 billion, up 13.9%. In addition, the company has decided to buy back 28 million shares (about 1.9% of issued shares). It also announced that it will conduct a tender offer (TOB) to make Descente <8114> and Takiron CIA <4215> wholly owned subsidiaries.
Materials of concern in the morning session
・ 1 dollar = 143.80-90 yen
・ Chicago Nikkei futures are rising (33,190, Osaka +1810)
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.
NTT DATA G <9613> increased its core system design staff by 700 people, 1.9 times more than in fiscal 2026.
Freund Industries <6312> invests over 5 billion yen in a new factory and doubles production of additives to 2.5 times.
Yamato Holdings <9064> supports Osaka tourism with new store and temporary large baggage storage.
The derailment accident of JR Tokai <9022>'s maintenance vehicle was caused by decreased braking force.
ITOCHU <8001> aims to make Descente <8114> a wholly-owned subsidiary through a TOB at 4,350 yen per share.
Mitsubishi Electric Corp. unsponsored ADR <6503>: Concerns about leaks from Mitsubishi Electric Home Appliances to 2.31 million customers.
Asahi Soft Drinks <2502> installs new bottling line for PET bottle beverages at Akashi factory.
Toyota Motor <7203> and government explore sustainability, implement hydrogen vehicles in Kyushu through CJPT.
Mitsubishi Motors <7211> will increase the capacity and power output of PHV batteries for new SUVs this fall.
Sodick <6143> refreshes laminated 3D printer for the first time in 10 years.
The president of Kurimoto Iron Works <5602> has won a settlement construction contract for water pipes.
Hitachi Shipbuilding <7004> and Kashima develop floating foundation for offshore wind power and plan to mass-produce it.
Mitsubishi Heavy Industries <7011> receives orders for gas and steam turbines from Malaysia.
Tsukishima Holdings <6332>, JFE Aqua Sol, and three other companies are promoting the recovery of nutrient phosphorus and its reuse as fertilizer.
NTT <9432> has received 220 applications from cooperative partners for its large-scale language model "Tzumi".
Icom <6820> automates the screw tightening and inspection process for fixed wireless radios, increasing production capacity by 30%.
Hitachi <6501> has received a 110 billion yen order in the United States and will deliver 200 railroad cars starting in 2029.
Dai Nippon Printing <7912> has doubled production capacity for sealing materials through facility enhancement in Fukushima.
SoftBank <9434> has improved the answer accuracy of its generated AI and enhanced data search.
Casio Computer <6952> forms a capital alliance with an AI start-up.
Nippon Sheet Glass <5202> expands its high value-added business domain under the leadership of President Munehiro Hosonuma.
Nishimatsu Construction <1820> automatically estimates the behavior of buildings with high precision for earthquake risk assessment.
Nippon Road <1884> develops a mixture of biochar and CO2-fixing material for road paving with Shimizu Construction.
Zeon Corporation <4205> establishes a synthetic rubber technical support base in India.
Mitsui Chemicals <4183> delays the resumption of ethylene production at its Osaka plant.
Mitsubishi Estate <8802> decides to open a luxury hotel "Andaz" in a large-scale mixed development project in Indonesia.
☆ Schedule of events in the morning session
08:30 June monthly labor statistics and total cash earnings (expected change from previous year: +2.4%, May: +2.0%).
08:30 June household spending (expected change from previous year: -0.8%, May: -1.8%).
Not applicable.