The Nikkei Average fell. At the end of the morning session, it was 37,805.35 yen (with an estimated trading volume of 0.609 billion shares), down 257.57 yen (-0.68%) from the previous day. Product structure, for 10-30 billion yen products, operating income is respectively 401/1288/60 million yen.
The US stock market fell on the 20th. The Dow Jones Industrial Average fell 61.56 dollars (-0.15%) to 40834.97 dollars, the Nasdaq fell 59.83 points (-0.33%) to 17816.94, and the S&P 500 fell 11.13 points (-0.20%) to 5597.12 at the end of trading. After the deterioration of non-manufacturing activity of the Philadelphia Federal Reserve in August, concerns about a slowdown in the economy resurfaced, and it fell after the opening. Profit-taking selling ahead of this week's Jackson Hole annual meeting hosted by the Kansas City Federal Reserve Chairman Powell's speech is also prominent, so it remained weak and ended.
Tokyo stocks opened lower due to the progress of the yen appreciation and the dollar depreciation up to 145 yen to the dollar. The Nikkei Average expanded its decline to 37,605.83 yen, but gradually narrowed its decline due to a pause in the appreciation of the yen. It ended trading in the morning in the minus zone from the previous day, but it became a stable situation considering the level of the exchange rate. However, the trading value of the Prime Market decreased to 1.7 trillion yen, and the cautious stance seems to be increasing.
Among the Nikkei Average constituent stocks, Pacific Cement <5233> fell due to negative reports from domestic securities companies, and First Life HD <8750> and Tokio Marine HD <8766> fell as the US 10-year bond yield fell below 3.8% for the first time since August 5th, causing Japanese interest rates to also decline. In addition, Shiseido <4911>, Furukawa Electric <5801>, IHI <7013>, Sumitomo Chemical <4005>, Advantest <6857>, and Laser Tech <6920> were sold.
On the other hand, Seven & I HD <3382>, whose stock price is moving due to a takeover proposal from Canadian rival Alimentation Couche-Tard, rose today. Nikkei <2871> was also bought on the basis of a positive report from domestic securities companies, and Nitori Holdings <9843>, a yen-advantage stock, rose. In addition, Canon <7751>, Keyence <6861>, Terumo <4543>, Astellas Pharma <4503>, and Fujifilm HD <4901> were bought.
In terms of industry classification, petroleum and coal products, insurance, mining, pulp and paper, and non-ferrous metals all declined, while air transportation, precision instruments, and service industries rose in the three sectors.
The dollar has fallen to the level in January of this year, with a dollar index of around 101.1. The weakness of the dollar is noticeable. The exchange rate briefly soared to the 144 yen level in the morning, but once the yen buying and dollar selling subsided. The latter half of trading is expected to be a nervous market development, looking at the exchange rate. Given the increased vigilance about tonight's US Bureau of Labor Statistics announcement of preliminary estimates of revised baselines, there may be further opportunities for yen buying and dollar selling. We should be wary of a market trend like the one on the afternoon of the 19th (Monday).