There are three points to focus on in the trading session on the 22nd.

■ With important events approaching, the market is focused on exchange rate movements.

■ No earnings reports announced.

■ Focus of the morning session: JGC Holdings, Ministry of Economy, Trade and Industry, etc., common specifications for CO2 transportation, establishment of a council.

■ With important events approaching, the market is focused on exchange rate movements.

On the 22nd, the Japanese stock market seems to be in a stalemate ahead of important events, but there seems to be strong buying interest waiting for a pullback. On the 21st, the U.S. market saw the Dow Jones Industrial Average rise by 55 points and the Nasdaq by 102 points. The U.S. Department of Labor's Bureau of Labor Statistics (BLS) released a preliminary revision of the number of U.S. employers, resulting in a substantial downward revision of the number of employees over the past year until March, raising expectations of an interest rate cut. In addition, the Federal Reserve Board (FRB) released the minutes of the Federal Open Market Committee (FOMC) meeting held in July, suggesting a rate cut in September, also seen as a significant development. The settlement value of the Chicago Nikkei 225 futures was 85 yen lower than Osaka, at 37,885 yen. The yen was trading at around 145.00 per dollar.

It is likely to start with a slightly bearish tone due to adjustment to the Chicago futures. In the U.S., a rate cut at the FOMC in September is seen as certain, and the foreign exchange market is trending slightly towards a stronger yen, making it difficult to handle exports, among others. In a situation where the strong yen trend intensifies, short-term selling may also occur, making it likely to continue to focus on exchange rate movements.

However, with the upcoming speech by FRB Chairman Powell at the Jackson Hole meeting, there is a tendency to refrain from active trading. It is also considered that in the case of a bearish move, early buying back is likely, and in the event of a sharp sell-off, it is likely to move towards a stance of rebound hunting. Yesterday's trading volume on the Tokyo Stock Exchange Prime was in the range of 1.3 billion shares, and with limited market participants, it is easily affected by short-term trading, but it is considered unlikely to establish a trend.

The Nikkei 225 futures had volatile price movements in the night session, but it was range-bound around 38,000 yen. Although the Nikkei average fell yesterday, it almost lowered the opening price to the low, indicating strong buying interest on dips. It is difficult to expect aggressive buying momentum, but it is likely to shift towards a stance of profit-taking after important events. As the Nikkei average becomes more stagnant, individual investors' funds are likely to shift to indexes such as small and mid-cap stocks that are less affected. The Growth 250 Index has rebounded at the current level and is capturing the 75-day moving average. If it surpasses the same line, the bias towards the upside is likely to strengthen.

No earnings announcements

Materials of concern in the morning session

- The NY Dow Jones Industrial Average rose (40,890.49, +55.52)

- The NASDAQ Composite Index rose (17,918.99, +102.05)

- The SOX Index rose (5,267.93, +71.63)

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.

- JGC Corporation <1963> and the Ministry of Economy, Trade and Industry are discussing the establishment of a council for common specifications for CO2 transportation.

- Toho Gas <9533> and Tokyo Gas <9533> are conducting detailed discussions with an Australian company on the production and export of synthetic methane.

- Nippon Yusen Kabushiki Kaisha <9101> has agreed with Kansai Electric Power and others to transport green ammonia by sea from India.

- Obic Co. <4733> will collaborate with PayPay on digital wage payments.

- Kawasaki Heavy Industries <7012> has rewritten data on marine engines due to inspection irregularities.

- Mitsui Chemicals <4183> will resume ethylene production at its Osaka plant in October.

- Tohoku Special Steel <5484> Tomato cultivation, confirmation of insect control by vibration, use of magnetostrictive material - Behavioral inhibition confirmation.

- Daio Paper <3880> Tokyo District Public Prosecutors Office dismisses Japan Paper's claim, denying patent infringement of long toilet paper.

- Mitsui & Co. <8031> New company to process electromagnetic steel sheets in Poland.

- Sumitomo Corporation <8053> Geothermal power generation in New Zealand, operating capacity equivalent to 0.2 million households per year.

- Iseki & Co. <6310> Expanding production in Indonesia, transferring medium-sized tractors or above for overseas markets.

- Eiken Chemical <4549> Automation of clinical testing with Hitachi High-Tech and others, connecting devices with conveyor lines.

- Sony Group <6758> Providing development support software for gaming with 3D sound.

- NTT Data Group <9613> Yu Sasaki overseas expansion, highlighting uniqueness.

Sumitomo Chemical <4005> to concentrate research in Chiba and Sodegaura, open a new building, and reduce environmental impact of petrochemicals.

Mitsubishi Materials <5711> develops square silicon substrates for next-generation semiconductor packaging.

Heiwa Real Estate <8803> to open Park Hyatt Sapporo in 2029, strengthening the hotel through redevelopment.

Kyushu Electric Power <9508> collaborates with Tohoku Enterprise to develop applications for a quadruped robot.

Komatsu Matera <3580>: Daisuke Nakayama challenges to expand into the European and Chinese markets.

Kobe Steel <5406> forms joint venture with three Chinese companies to manufacture aluminum panels for cars.

Denka <4061> to raise prices of synthetic rubbers and water-hardening cement from next month.

☆ Schedule of events in the morning session

Not applicable.

Not applicable.