In the afternoon trading on the 20th, we want to focus on the following three points.
- The Nikkei average rebounds significantly, recovering the previous day's decline led by futures.
- The dollar-yen is firm, due to buybacks of the US dollar.
The top contributors to the rise were First Retail and East Electric.
- The Nikkei average rebounds significantly, recovering the previous day's decline led by futures.
The Nikkei Average has rebounded significantly. As of the morning session, it closed at 38,015.87 yen (+627.25 yen or +1.68%) from the previous day's closing price with an estimate of 807 million shares traded.
On the 19th, the U.S. stock market continued to rise. The Dow Jones Industrial Average rose 236.77 points (+0.58%) to 40,896.53, the Nasdaq rose 245.05 points (+ 1.39%) to 17,876.77, and the S&P 500 rose 54.00 points (+ 0.97%) to 5,608.25. The economy is expected to avoid rapid slowdowns and achieve a soft landing, so it rose after opening due to expectations. In addition, the Daily San Francisco Fed President, Kashkari Minneapolis Fed President, and Goolsbee Chicago Fed President all showed a positive attitude towards a rate cut in September in weekend interviews, supporting expectations of gradual rate cuts and leading to buying all day long. Semiconductor supported the market, and the stock prices expanded in the latter half of the day.
As the rise in the U.S. stock market and the progress of the yen appreciation in the exchange calmed down, the Tokyo stock market opened with a buying trend. The Nikkei average started at the 37,800 yen range and gradually expanded the increase to the 38,000 yen range, recovering from the previous day's decline. However, since the leading force is somewhat due to futures, the direction of the search is difficult to see and the trading value of the prime market in the morning session was less than 1.9 trillion yen and below 2 trillion yen.
Among the Nikkei 225 stocks, Yamaha <7951>, Sharp <6753>, and Yokogawa Electric <6841> were purchased. In addition, Sumitomo Pharmaceuticals <4506> was purchased daily and updated its year-to-date high. In addition,M3 <2413>, Mercari <4385>, Secom <9735>, Nissan Chemical <4021>, Omron <6645>, and Screen HD <7735> also rose.
On the other hand, Seven & I Holdings <3382> became a selling trend due to the backlash of the previous day's limit up. Regional bank stocks such as Shizuoka FG <5831>, Chiba Bank <8331>, Fukagawa <8354>, and Concordia <7186> were unpleasant. In addition, Hitachi <6501>, Mitsui & Co. <8031>, and Sumitomo Corporation <8053> were sold.
Among industries, precision instruments, pulp and paper, electric and gas industries, land transportation industry, air transportation industry, etc. rose, while only two sectors, banking and retail, fell.
The yen buying and dollar selling that occurred in Tokyo time the previous day was reportedly due to news that 'it will announce downward revisions of past US employment statistics on the 21st', but it was not at all considered material in overseas hours last night. The US 10-year bond yield was flat in the 3.8% range, so it was considered a rumor level. If there was a trade involving stop-losses led by supply and demand, it means that demand and supply have been sorted out for the time being, and the forex market and Tokyo stock market in the second half are likely to remain calm. The Nikkei average is assumed to be in a range of 38,000 yen.
- The dollar-yen is firm, due to buybacks of US dollars.
On the morning of the 20th, the dollar-yen was firm and rose to 147.10 yen around noon. During the price fixing, there were scenes where domestic players sold dollars and the rate went down to 145.85 yen. However, the dollar was bought back due to the recovery of US interest rates and exceeded the high point in the morning.
The trading range so far is 145.85 yen to 147.10 yen for the dollar-yen, 161.70 yen to 162.91 yen for the euro-yen, and 1.1075 dollars to 1.1087 dollars for the euro-dollar.
Check stocks for the afternoon session
- 5 stocks such as PostPrime <198A> and Libera Ware <218A> hit the daily limit high.
*Includes temporary stopper (indicated price)
The top contributors to the rise were First Retail and East Electric.
Economic indicators and remarks by important people
[Economic indicators]
- NZ July trade balance: -0.963 billion NZ dollars (June: +0.585 billion NZ dollars < +0.699 billion NZ dollars >).
[Important Person's Remarks]
Minutes of the Reserve Bank of Australia: "There is still information indicating the need to be vigilant about the risk of upward inflation."
"The risk of inflation not returning to the target within a reasonable period of time has increased, so we have determined."
"The possibility of lowering the policy interest rate in the short term is low."
"Monetary policy needs to be sufficiently restrictive until we are confident about the progress of inflation."
Not applicable.
Not applicable.