Three points to focus on during the afternoon trading of the 7th.

The Nikkei average continued to rise sharply and quickly reversed course with the remarks of Uchida, the BOJ Deputy Governor.

The dollar-yen is firm due to the rise in Japanese stocks.

Softbank Group Ltd. <9984> ranked top in price increase contribution, while Tokyo Electron Ltd. <8035> ranked second.

The Nikkei average continued to rise sharply and quickly reversed course with the remarks of Uchida, the BOJ Deputy Governor.

Nikkei Average continued to rise sharply. It closed the morning trading at 35464.61 yen (+2.28%, 789.15 yen higher than the previous day) (estimated trading volume of 1.5 billion 90 million shares). In terms of product structure, the operating income of 10-30 billion yuan products was 401/1288/60 million yuan respectively.

The US stock market rebounded on the 6th. The Dow Jones Industrial Average closed at 38,997.66 (+294.39, +0.76%), the Nasdaq at 16,366.86 (+166.78, +1.03%), and the S&P500 at 5,240.03 (+53.70, +1.04%). Many shares were bought because the previous day's drop was considered to be an overreaction. Concerns over serious economic downturns eased, and the investor mood improved. In addition, the good earnings of some major companies such as Caterpillar prompted traders to buy back shares during the day. High-tech stocks also rose sharply and the market ended in the plus zone despite losing momentum at the end.

While US stocks are regaining stability, the volatile Tokyo market opened with sellers taking the lead. After the start of trading, the Nikkei average fell to 33,739.46 yen, but bank stocks were bought back in the physical market, and the TOPIX stopped declining and started rising. When Masayuki Ueda, Deputy Governor of the Bank of Japan, spoke at a financial and economic discussion hosted in Hakodate, he said, "There will be no interest rate hike in an unstable financial capital market," and "It is necessary to properly continue financial easing at the current level in the short-term." When this was announced, the yen weakened and the exchange rate saw a temporary drop of about 3 yen per dollar. At the timing of the yen's weakening, the Nikkei average quickly recovered and rose by more than 1,000 yen at one point.

In the Nikkei average selection stocks, Disco <6146> rose significantly, and some semiconductor stocks such as SoCionext <6526> rose. In addition, NICHIREI <2871> was bought due to its earnings, and bank stocks such as Sumitomo Mitsui <8316>, Resona Holdings <8308>, Mitsubishi UFJ <8306>, Mizuho <8411>, and Fukuoka <8354> all rose. Canon <7751>, Nippon Steel <5631>, IHI <7013>, and Kawasaki Heavy Industries <7012> were also bought. Conversely, Daikin <6367> and Ricoh <7752> fell significantly due to lower-than-expected first-quarter operating profit, and Mitsui Chemicals <4183> was sold due to concerns about plant troubles despite good first-quarter performance. In addition, Furukawa Electric <5801>, AGC <5201>, Ajinomoto <2802>, and Kajima Construction <1812> fell.

While all industries are in an upward trend, the banking industry, the wholesale trade industry, the insurance industry, the securities and commodity futures trading industry, and machinery industries stood out.

The exchange rate is hovering around 146 yen per dollar. The yen's appreciation stopped after the remarks made by Deputy Governor Ueda. The USD/JPY has been volatile, fluctuating more than 2 yen a day since July 30th. The press conference by Deputy Governor Ueda is scheduled to be held today at 2:30pm, and there is sufficient potential for further yen depreciation or reversal to yen appreciation. Various speculations are stirring up the market, so caution should be exercised for the Tokyo market in the afternoon.

The Nikkei average rose sharply. It closed the morning trading at 35464.61 yen (+2.28%, 789.15 yen higher than the previous day) (estimated trading volume of 1.5 billion 90 million shares).

The dollar-yen is firm due to the rise in Japanese stocks.

In the morning of the 7th, in the Tokyo market, the dollar-yen showed a firm movement and rose from 144.31 yen to 147.49 yen. As the Nikkei Average turned positive, the yen-buying for risk aversion retreated, resulting in a strong trend in major currencies against the yen. The yield on 10-year US treasuries remained high, leading to dollar-buying. The trading range so far was 144.31-147.49 yen for the dollar-yen, 157.73-160.92 yen for the euro-yen, and 1.0919-1.0931 dollars for the euro-dollar.

The trading range so far was 144.31-147.49 yen for the dollar-yen, 157.73-160.92 yen for the euro-yen, and 1.0919-1.0931 dollars for the euro-dollar.

Check stocks for the afternoon session

13 stocks, including Post Prime <198A> and Wise Foods Co., Ltd. <3358>, hit the daily limit high.

*Includes temporary stopper (indicated price)

Softbank Group Ltd. <9984> ranked top in price increase contribution, while Tokyo Electron Ltd. <8035> ranked second.

Economic indicators and remarks by important people

[Economic indicators]

NZ unemployment rate for Q2 4.6% (estimate: 4.7%, Q1: 4.3%)

NZ employed population change for Q2 +0.4% compared to the previous quarter (estimate: -0.2%, Q1: -0.2%)

[Important Person's Remarks]

BOJ Deputy Governor Uchida

"The economy is gradually recovering and is expected to continue to grow above the potential growth rate."

"If the economy and prices develop as expected, adjustments to the degree of easing will be necessary."

14:00 June Economic Indicators Leading Indicator Initial Value (expected: 108.8, May: 111.2)

Time unspecified - Middle-2019 Export (YoY expected: +9.5%, June: +8.6%)

Time unspecified - Middle-2019 Import (YoY expected: +3.2%, June: -2.3%)

15:00 German June Mining Industry Production (MoM, expected: +1.0%, June: -2.5%)

15:00 German June Trade Balance (expected: +21.5 billion euros, May: +24.9 billion euros)