In the afternoon of the 27th trading day, the following three points should be noted.

- The Nikkei Average continued to decline slightly, with a standoff around the 38,000 yen level due to waiting for Nvidia's earnings announcement.

- The dollar-yen remains firm with a slight increase to the 144 yen level.

- Tokyo Electron <8035> was the top declining stock contributor, followed by Advantest <6857>.

The Nikkei Average continued to decline slightly, with a standoff around the 38,000 yen level due to waiting for Nvidia's earnings announcement.

The Nikkei Average continued to decline slightly. It closed the morning session at 38,055.62 yen (approximately 607 million shares traded), down 54.60 yen (-0.14%) from the previous day.

The US stock market was mixed. The Dow Jones Industrial Average closed at 41,240.52 (+65.44, +0.16%), the Nasdaq closed at 17,725.77 (-152.02, -0.85%), and the S&P 500 closed at 5,616.84 (-17.77, -0.32%). Following the speech by Federal Reserve Chairman Powell at the Jackson Hole meeting, there was continued buying due to expectations of a rate cut. After the opening, the Dow continued to rise as durable goods orders and the Dallas Fed manufacturing activity index exceeded expectations, creating expectations of a soft landing. However, concerns over the situation in the Middle East suppressed gains and the market lost momentum towards the end, although it reached a new record high. On the other hand, the Nasdaq turned to selling due to rising long-term interest rates and the decline of semiconductor stocks such as Nvidia ahead of earnings announcements, resulting in a subdued and mixed performance throughout the day.

Due to the mixed performance of US stocks, the Tokyo market had a directionless start. With the exchange rate stabilizing around 144 yen to the dollar, there were no significant selling pressures observed. The Nikkei Average remained in a standoff around the 38,000 yen level. The market sentiment is cautious as it awaits Nvidia's earnings announcement early on the 29th Japanese time, and trading volume on the prime market remained at 1.5 trillion yen.

Among the stocks adopted for the Nikkei Average, semiconductor-related stocks such as Laser Tech <6920>, Tokyo Electron <8035>, Advantest <6857>, and Screen HD <7735> were sold. In addition, Hitachi <6501>, Disco <6146>, Sumitomo Pharma <4506>, Alps Alpine <6770>, and SoftBank Group <9984> declined.

On the other hand, Yokogawa Electric <6841> was bought due to positive reports from domestic securities companies, and Jtekt <6473> steadily increased its gains. In addition, Nissui <1332>, Marui Group <8252>, JGC Holdings <1963>, Credit Saison <8253>, and Aozora Bank <8304> rose.

In terms of industry categories, other products, electric appliances, textiles & apparels, service industry, and air transportation declined, while mining, pulp & paper, insurance, iron & steel, marine transportation, and transportation equipment rose.

Due to a cautious mood, the afternoon Nikkei Average is likely to remain in a stalemate around the 38,000 yen level, just like the morning session. There is a possibility that buying for interim dividends of August- or February-ending stocks may continue until tomorrow, which is the final trading day for rights acquisition. However, the impact on the index and other indicators will be limited. With the easing of the strengthening of the yen, the market is expected to be colored by the announcement of NVIDIA's earnings report.

The USD/JPY remains firm and has a slight increase in the 144 yen range.

In the Tokyo market on the morning of the 27th, the USD/JPY remained firm, falling to 144.23 yen before rising slightly to 144.96 yen. The yield on the 10-year US Treasury bonds was slightly higher, making the dollar more likely to be bought against the yen. On the other hand, the Nikkei Stock Average returned to the previous day's closing level, weakening yen buying.

The trading range so far is: USD/JPY 144.23 yen to 144.96 yen, EUR/JPY 161.05 yen to 161.85 yen, and EUR/USD 1.1159 dollars to 1.1170 dollars.

Check stocks for the afternoon session

- Coats Kogyo <1743>, Magumagu <4059>, and 7 other stocks are hitting the daily limit.

*Includes temporary stopper (indicated price)

- Tokyo Electron <8035> was the top declining stock contributor, followed by Advantest <6857>.

Economic indicators and remarks by important people

[Economic indicators]

- U.S. July durable goods orders flash estimate: +9.9% MoM (Estimate: +5.0%, June: -6.9% ← -6.7%).

- U.S. July durable goods orders (excluding transportation equipment) flash estimate: -0.2% MoM (Estimate: -0.1%, June: +0.1% ← +0.4%).

- U.S. July manufacturing shipments and capital goods (excluding aircraft and non-defense) flash estimate: -0.4% MoM (Estimate: +0.1%, June: 0 ← +0.2%).

- US - August Dallas Fed manufacturing activity index: -9.7 (forecast -16.0, July: -17.5)

[Important Person's Remarks]

Daily San Francisco Fed President: "Evidence has been obtained that the rate of growth in the PCE price index is slowing, and it is sufficiently contractionary."

"Policy adjustments are appropriate."

"It is premature to recognize the pace of future interest rate cuts."

"There are still no signs of significant weakness in the labor market."

"The Fed needs to return inflation to the target of 2%."

"The Fed has a commitment and means to return inflation to 2%."

Not applicable.

- 15:00 German GDP revised value for Q2 (YoY forecast: +0.3%, preliminary value: +0.3%)