The Nikkei average continued to rise. It ended the morning session at 38,709.88 yen, up 62.13 yen (+0.16%) from the previous trading day, with an estimated volume of 704 million 40 million shares traded.
On August 30, the US stock market rose. The Dow Jones Industrial Average closed at 41,563.08, up 228.03 points (+0.55%) from the previous day, while the Nasdaq rose by 197.20 points (+1.13%) to 17,713.63, and the S&P 500 closed at 5,648.40, up 56.44 points (+1.01%). The soft landing expectations were reinforced by nearly expected July PCE deflator (core), offsetting gradual rate cut expectations and rising long-term interest rates, causing a temporary market decline. However, increased buying due to end-of-month factors, improvements in the August University of Michigan Consumer Sentiment Index, and the August Chicago Purchasing Managers Index prompted another round of buying, expanding gains. The Dow reached record highs for consecutive days and closed.
The Tokyo market started trading with a bias towards buying, driven by the rise in US stocks and the weakening yen. The Nikkei average started in the 39,000 yen range, but buying momentum waned, leading to a slowdown. With the US stock market closed tonight, there was no aggressive buying, causing the Nikkei average to slowly reduce its gains. Although it briefly reached the psychologically significant 39,000 yen level, the lack of buying interest kept the trading value on the main board at 1.6 trillion yen.
In the Nikkei average constituent stocks, Credit Saison <8253> rose as securities firms' reports were seen as positive catalysts, while IHI <7013> hit new year-to-date highs for multiple consecutive days. Kawasaki Heavy Industries <7012> also saw gains. Additionally, Advantest <6857>, Yaskawa Electric <6506>, Mitsubishi Chemical Group <4188>, Murata Manufacturing <6981>, and SUMCO <3436> were bought.
On the other hand, ZOZO <3092>, Nitori Holdings <9843>, Sapporo Holdings <2501>, Asahi Group Holdings <2502>, and other yen strength beneficiaries showed weakness. Sumitomo Dainippon Pharma <4506>, Sumitomo Chemical <4005>, Shionogi <4507>, Kyowa Kirin <4151>, and Disco <6146> were sold.
By sector, nonferrous metals, banking, securities and commodity futures trading, transportation equipment, and electricity and gas sectors rose, while pharmaceuticals, land transportation, real estate, food, and marine transportation industries declined.
Due to the US market being closed tonight, trading in the afternoon session of the Tokyo market is expected to be cautious and subdued. With weak domestic stocks today, as the TOPIX is already in negative territory compared to the previous trading day, it is important to be aware of the possibility of the Nikkei average entering negative territory. Attention should be paid to whether the Nikkei average can maintain the 38,646 yen level, where the 75-day moving average sits, at the closing bell.