In the morning trading on the 21st, the following three points should be noted.
Developments in currency exchange
YE Digital raises profit forecast for Q2 to 1.8 billion yen from 1.6 billion yen
Morning focus materials: Obayashi Construction provides concrete crack detection technology for aging infrastructure
Developments in currency exchange
On September 21, the Japanese stock market is likely to experience a stalemate in the midst of profit-taking, but there seems to be strong buying interest targeting dips. On September 20, the Dow Jones Industrial Average fell 61 dollars and the Nasdaq fell 59 points. Concerns about a slowdown in the economy were rekindled by the deterioration of non-manufacturing business activity at the Philadelphia Federal Reserve in August. In addition, profit-taking selling ahead of Federal Reserve Board (FRB) Chairman Powell's speech at the Jackson Hole Annual Meeting sponsored by the Kansas City Fed was also prominent. Chicago Nikkei 225 futures settlement price was down 545 yen from Osaka at 37,535 yen. The yen is trading around 145.10 yen to the dollar.
Starting with a push toward selling in Chicago futures, it is likely to begin with a selling preference. In night session, there were scenes where the Nikkei 225 futures were sold down to 37,470 yen. However, it was bought up to 38,270 yen due to the previous day's rise, so it should be within the range of a reactionary decline. At present, while business is unlikely to expand, the volatility has increased, and short-term trading is the main focus. In the night session, the 25-day line was recognized as a resistance line, so after the selling wave, it is likely to shift toward a stance of targeting dips.
Furthermore, it is difficult to expect a move to aggressively stack positions ahead of the Jackson Hole meeting, and limited moves are likely to be made. Although the U.S. market fell, profit-taking is likely to be easy as the Nasdaq and S&P 500 indexes had risen for eight business days until the previous day. The trend is expected to be centered around holding adjustments, with strong buying interest targeting dips. However, in the United States, with a rate cut in September being considered certain, the spread between Japanese and American interest rates is shrinking, causing the foreign exchange market to fluctuate with yen strength, making it easier for selling to enter into export-related suppliers, among others.
It is likely to be a market situation where the foreign exchange market is watched and in case of a situation where it is pressed by sell-offs due to the yen's appreciation, it is likely to aim for a rebound afterwards. Although the Nikkei average had exceeded the 25-day line with the previous day's rise, it is likely to be in a battle of attacks and defenses along the same line. Even if there are short-term selling triggers, the 200-day line, which is located around 37,000 yen, is likely to function as a support line. In terms of stock picking, short-term funds are likely to be directed to yen-advantageous stocks such as Nitori HD <9843>. in a market flow that is swayed by trading involving indexes.
YE Digital raises profit forecast for Q2 to 1.8 billion yen from 1.6 billion yen
YE Digital (2354) announced a revision of its financial estimates for the fiscal year ending February 2025. The revenue was adjusted upwards from 20 billion yen to 20.3 billion yen, while the operating profit was revised from 1.6 billion yen to 1.8 billion yen. Due to increased sales revenue from business DX and expense reduction, the operating profit, ordinary profit, and net profit attributable to the parent company's shareholders are expected to significantly exceed expectations.
Materials of concern in the morning session
The Nikkei Average is up (38062.92, +674.30).
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.
Obayashi Construction offers concrete crack detection technology for aging infrastructure
JR West Japan <9021>, Japan Travel, Nissan, and 14 other companies form new organization for promoting environmentally friendly travel
NTT <9432> makes optical transmission line visible without measuring device
Panasonic HD <6752> considers supply of domestic EV batteries to Subaru and Mazda
Konica Minolta <4902> shrinks in China, produces information equipment, disperses throughout Asia
Mitsubishi UFJ <8306> sells some U.S. regional bank shares
TDK <6762> develops common mode filter to reduce high frequency noise
Marubeni <8002> opens part of Australian railway extension to ease congestion near Sydney
Marubeni <8002> sells low-carbon aluminum
Marubeni Energy President Yasuaki Suzuki explores next-generation fields of fuel
Tokai Rika <6995> partners with MNC to create thermoelectric conversion elements with CNTs
Maruyama Akira of Harmonic (6324) aims for growth with a humanoid robot.
Seiko SOL of Seiko Group (8050) expands telematics and develops services with Indian partners.
Hitachi (6501) acquires US-based engines to strengthen its life science business.
Mitsubishi Electric Corp. unsponsored ADR (6503) is producing light-receiving devices with an operating speed of 200 Gbps.
Sumitomo Electric Industries (5802) opens a new research building in Yokohama for high-performance optical connectors.
Toagosei (4045) accelerates research on functional materials for EVs and semiconductors by establishing a new base in Kawasaki.
Shibasaki Osamu, the next president of Kozu Industries (7487), will reorganize the company's Asian network.
Cosmo Energy Holdings (5021) certifies the Sakai refinery of Cosmo Oil as a highly qualified safety practitioner - a first in Japan.
Resonant (4004) streamlines the development of semiconductor materials by using AI in simulations.
Nakamura Chokko (6166) is growing in materials science and plans to mass-produce porous structural materials next year.
Tokyu Fudosan Holdings (3289) is hiring large numbers of skilled workers from Myanmar and the Philippines to work with Tokyu Resorts.
Sumitomo Chemical (4005) has received approval for 10 'environmental protection' initiatives, which account for 24% of total sales.
☆ Schedule of events in the morning session
08:50 July trade balance (forecast: -350 billion yen; June: +224 billion yen).
Not applicable.