In the morning session of the 20th trading day, there are three points to pay attention to as follows.

Flow inducing buying back of short-term muscles.

Inai HD,24/6 operating profit increased by 4.4% to 9.853 billion yen and is expected to increase by 6.6% to 10.5 billion yen on June 25th.

Attention is focused on the morning: Sumitomo Corporation's domestic sale of silver agrochemicals, exclusive contracts with new Central American markets.

Flow inducing buying back of short-term muscles.

In the Japanese stock market on the 20th, although there is a possibility that the stalemate may be strengthened after the buying round, the buying desire to wait for the purchase is likely to be strong. On the 19th, the Dow Jones Industrial Average was up 236 points and the Nasdaq was up 245 points. Purchases took precedence due to expectations that the U.S. economy could avoid rapid deceleration and achieve a soft landing. In addition, the attitude of the San Francisco Fed President, Daly, Minneapolis Fed President Kashkari, and Chicago Fed President Goolsbee, who showed a positive attitude towards a rate cut in September in interviews over the weekend, also provided support. The Chicago Nikkei 225 futures settlement price was 37,820 yen, up 650 yen from Osaka. The yen exchange rate is moving at around 146 yen and 60 sen per dollar.

Starting with the saucer spread to the Chicago futures market, it is likely to start with a gap up. The Nikkei 225 futures rebounded in the night session and recovered the 25-day moving average in the daytime trading, and there were scenes where it was bought up to 37,870 yen. The Nikkei average stock price yesterday had a bias toward the downward trend in the afternoon, but it is likely to create a flow inducing buying back of short-term muscles.

However, it is also considered likely that there will be a trend towards looking for mood developments to determine Fed Powell's remarks at the Jackson Hole conference, making it easier for sellers to enter the market for profit taking as they approach the milestone of nearly 38,000 yen. Also, attention must be paid to the trends in the foreign exchange market, which were the factors behind yesterday's decline, and it is considered that during a phase where the yen trend strengthens again, it is easy to move toward a movement that initiates a selling plan led by futures. Therefore, it is likely that the stance will be to wait for an opportunity to buy on decline near the 25-day moving average.

As for picks, high-tech stocks that impact indices are expected to be the leading force in the Nikkei average stock price. In the United States, AMD and Nvidia have shown increases of more than 4%, and the Nasdaq has risen for eight straight days. The Nasdaq index has crossed the 75-day moving average on the 25th and is recovering to the level of July 23rd, which will become the supporting material for high-tech stocks. However, the S&P 500 index has also continued to show strong movements and has recovered to the level of July 18th for eight business days.

In the Tokyo market, while index buying is at the center, a wide range of stocks are likely to be bought. If the 25-day moving average is to be considered as a support line in the Nikkei average stock price, the range to be targeted is around 38,655 yen where the 75-day moving average is positioned, so it is also possible that the buying back movement of sellers will be strong.

Inai HD,24/6 operating profit increased by 4.4% to 9.853 billion yen and is expected to increase by 6.6% to 10.5 billion yen on June 25th.

AiiiHD <3076>'s performance for the term ending June 2024 showed that sales increased by 7.4% to 49.812 billion 53 million yen from the previous year and operating profit increased by 4.4% to 9.853 billion 53 million yen. Security equipment for condominiums performed well, with solid growth in both new and rental sales, as well as strong sales to corporations that captured the need for "visualization." In terms of design business, we have steadily received structural design orders from government agencies and private companies. For the term ending June 2025, sales are planned to increase by 36.5% to 68 billion yen from the previous year and operating profit is expected to increase by 6.6% to 10.5 billion yen.

Materials of concern in the morning session

The NY Dow Jones Industrial Average rose to 40896.53, up 236.77 points.

The NASDAQ Composite Index rose to 17876.77, up 245.05 points.

1 USD = 146.60-70 JPY.

The Chicago Nikkei Futures rose to 37820, up 650 points compared to Osaka.

The SOX Index rose to 5266.57, up 96.32 points.

The VIX Index declined to 14.65, down 0.15 points.

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.

Sumitomo Corporation <8053> to sell silver agrochemicals domestically and enter into an exclusive agreement with new Central American markets.

DNAGroup's GO, Lawson and EV rapid charging for corporations in use in Yokohama.

Seven & iHD <3382> to be considered for acquisition proposal from Canadian company on special committee.

Tokyo Electric PowerHD <9501> to begin collecting samples of debris that weigh less than 3 grams on the 22nd.

- Mitsui & Co., Ltd. <8031> targeting health-oriented Singapore in-flight meals and frozen foods.

- Marubeni Corporation <8002> acquires edible oils and fats in the United States, targeting local health needs.

- Mazda Motor CRP <7261> will release its fourth large car, the "CX-80" in the fall, the fruit of quality development.

- Press Kogyo Co., Ltd. <7246> rebuilt its headquarters to adapt to flexible working styles, and will be completed in the fall of 2026.

- Mitsubishi Heavy Industries, Ltd. <7011> will commercialize ammonia power generation in cooperation with **** companies.

- Toyobo Co., Ltd. <3101> Toyobo MS proposes materials and joint development for overseas complete vehicles.

- Carritte Co., Ltd. <4275> enters the magneto-optical material field and proposes it for next-generation communications.

- Yoshitaka Ashida, President of Unichika Trading Co., Ltd. <3103>, aims to expand overseas sales routes for black ink.

- Amita HD <2195> establishes a joint venture in Indonesia to recycle waste into resources.

- Bridgestone Corporation Unsponsored ADR <5108> to increase the price of water supply and hot water pipes from October.

☆ Schedule of events in the morning session

Not applicable.

- 07:45 NZ July Trade Balance (+0.699 billion NZ dollars in June).

- 10:00 China's 1-year loan Prime Rate (currently 3.35%).