Three points to pay attention to during the trading session 7 days ago.

The world stock market downturn caused by excessive holding pressure is calming down.

Tokio Marine's first-quarter operating profit increased by 54.7% to 265 billion yen.

In the morning, Tokyo Gas will participate in floating offshore wind power and is expected to join by the end of the year in Portugal.

The world stock market downturn caused by excessive holding pressure is calming down.

On the seventh day, although there is a sense of recoil due to the sharp rebound of the previous day, the Japanese stock market is expected to remain firm due to the rise of US stocks. On the 6th, the US market saw the Dow Jones Industrial Average rise by 294 dollars and the Nasdaq by 166 points. As the Tokyo market showed a significant rebound and the European market moved steadily, the trend of buying on value was dominant. There was a buying trend on pullbacks centered around high-tech stocks such as Nvidia. Although there were concerns about the recession, some believed that it had lowered to an oversold level technically. The Chicago Nikkei 225 futures settlement price was 33,605 yen, down 635 yen from Osaka. The yen is trading around 144.40 yen to the dollar.

It is likely to start with selling, from hedging against the Chicago futures. As yesterday's Nikkei average recorded a record rebound of 3,217 yen, it is easy to sell at the waiting for a return. In the night session of the Nikkei 225 futures, there was a noticeable move of profit-taking and liquidation of long positions right after the start. Although there is still a situation where the price range is likely to come out, stability is seen around 33,000 yen.

Although it has not yet reached a level of independent rebound in the United States, with the rebound in the Tokyo market yesterday and the rise in Europe in the midst of steady price movements, the decline in global stocks due to excessive reduction of long positions seems to have subsided. It may be difficult to expect a rush of an active rebound, but there is likely to be buying on pullbacks from supply and demand adjustments after the recent sharp decline, including stocks that have updated their year-to-date lows. In addition, high-tech stocks that are impacted by the index size, such as Nvidia, are likely to face buying on value. Moreover, as the rough price movements of the market as a whole seem to be settling down, there may be a trend towards searching for stocks based on earnings reports once again. Furthermore, after the closing of the market yesterday, attention is likely to be paid to companies such as Tokio Marine Holdings <8766>, Suzuki Motor <7269>, Daiwa Securities Group <8601>, Keikyu <9006>, Keio <9008>, Furukawa Electric <5801>, Teijin <3401>, Idemitsu Kosan <5019>, IHI <7013>, and SQUARE ENIX HOLDINGS <9684> that report earnings.

In addition, with Nvidia's rise of more than 3%, high-tech stocks with high index impact are expected to be attracted by the sense of value. In addition, if the rough price movement of the overall market seems to settle down, it is likely to turn to picking based on earnings. In yesterday's post-closing results, Tokyo Marine <8766>, Suzuki <7269>, Daiwa Securities G <8601>, Keikyu <9006>, Keio <9008>, Furukawa Electric <5801>, Teijin <3401>, Idemitsu Kosan <5019>, IHI <7013>, and SQEX HD <9684> are expected to be targeted.

Tokio Marine's first-quarter operating profit increased by 54.7% to 265 billion yen.

Tokio Marine <8766>'s performance for the first quarter of FY March 2025 showed an ordinary profit increase of 5.6% YoY to 1924.073 billion yen and an ordinary profit of 265.032 billion yen, up 54.7% YoY. The net income insurance premium that corresponds to the sales of the casualty insurance business increased by 10% YoY to 1,298.4 billion yen. The revision of automobile insurance and fire insurance rates contributed to this, and there was also growth in new contracts overseas.

Materials of concern in the morning session

Nikkei average rose (34,675.46, +3,217.04)

Dow Jones Industrial Average rose (38,997.66, +294.39)

Nasdaq Composite Index rose (16,366.86, +166.77)

SOX index rose (4,567.57, +48.12)

VIX Index decreased (27.71, -10.86)

US crude oil futures rose (73.20, +0.26)

Expectations for inflation to ease in the US.

Active share buybacks

Request for improvement in corporate value by the Tokyo Stock Exchange.

Tokyo Gas <9531> will participate in floating offshore wind power and is expected to join by the end of the year in Portugal.

Osaka Gas <9532> to procure long-term LNG from UAE company, up to 0.8 million tons annually.

Kirin HD <2503> raised the TOB price of Fancl to 2,800 yen.

Mitsui & Co. <8031> Executive Officer Toru Matsui to achieve net-zero greenhouse gas emissions in 50 years.

Dentsu Group <4324> is using AI to generate advertising copy and has developed a support tool for creators to learn from.

Honda <7267> maintains top spot for new car sales in July with N-BOX, followed by Toyota's Corolla in second place.

Nissan <7201> has developed self-radiating cooling paint that can be used to save energy on air conditioners and keep them cool.

Yuasa Trading <8074> will have exclusive sales of energy-saving units in nine countries and one region.

Sakurai Seisakusho <7255> uses waste plastic for laminated molding and devises specifications for individual customers.

Hitachi Construction Machinery <6305> has a remote recovery function for when large shovel equipment malfunctions.

KDDI <9433> communication speed at the Koshien baseball stadium is 1.6 times faster due to antenna technology for 5G base stations.

FDK <6955> nickel-hydrogen battery for car equipment has a capacity 1.2 times larger and can be used in cold regions.

Lester <3156> uses solar shares in Kumamoto prefecture to create beekeeping and power plant installations.

Mitsui Fudosan <8801> invests 35 billion yen in DX to accelerate new service development and personnel training.

Japan Agrochemicals <4997> is advancing the use of AI to diagnose pests and weeds through smartphones.

Taisei Construction <1801> has started to validate hydrogen production from renewable energy sources in Yamanashi prefecture.

KH Neochem <4189> is enhancing the stable operation of domestic plants for premonitory preservation.

Sumitomo Chemical <4005> has obtained international certification for regenerative material products such as PE that make use of recycled materials at its Chiba plant.

Shimizu Construction <1803> recycles waste glass from dismantled buildings.

Tokyo Tatemono <8804> has obtained the first plan certification for their hotel.

☆ Schedule of events in the morning session

Deputy Governor Uchida of the Bank of Japan gives a speech at 10:30.

Export at mid-July (expected increase by +9.5% YoY, June: +8.6%). Time unset.

Import at mid-July (expected increase by +3.2% YoY, June: -2.3%). Time unset.