In the morning trading three days ago, we should pay attention to the following three points.
■ Despite the stalemate, there is a strong buying interest on dips.
ITO EN: 1Q operating profit decreased by 28.7% to 7.128 billion yen.
■ Key points in the morning session: Nikon aggressively targeting the exposure equipment market for car semiconductors demand.
■ Despite the stalemate, there is a strong buying interest on dips.
The Japanese stock market on the 3rd is expected to have a strong market development with a focus on buying opportunities while in a stalemate. The U.S. market on the 2nd was closed for the Labor Day holiday. The European market showed little movement due to a lack of clues, resulting in mixed developments. Nikkei 225 futures started with selling in the night session, but later traded in the positive territory. The clearing price of the Chicago Nikkei 225 futures (after hours) was 165 yen higher than Osaka at 38,855 yen. The yen exchange rate is trading around 146.90 yen to the dollar.
The Nikkei 225 futures closed above the 75-day moving average in the night session, making it likely to be perceived as a support level. With limited foreign flows, short-term trading is likely to be dominant, so in situations where futures are sold off, it's worth noting the subsequent buying dips aiming for a short-covering stance. In the U.S., ahead of the release of employment statistics over the weekend, market participants seem to believe that the results of the employment statistics will influence the extent of the interest rate cut by the Federal Reserve at the September FOMC meeting.
As a result, there is a tendency to wait and see the outcome, which could lead to an increased cautious mood and a conscious awareness of the sluggishness of rebounds, making it easier for selling pressure to enter the picture. However, taking an aggressive position as a seller carries risks, so an early cover could be considered. The Nikkei average stock price yesterday started to recover at 39,000 yen, but then softened and fell below 38,500 yen just after the start of the afternoon session. However, it was bought back towards the close and ended above the 75-day moving average.
It is advisable to anticipate buying dips when the 75-day moving average is breached. Therefore, close attention is likely to be paid to the movement of high-tech stocks, which have a significant impact on the index. With limited participants, there may be selling pressure on companies like Tohoku Electric (8035), which could lead to selling of futures. In the foreign exchange market, the yen exchange rate is trending towards a weaker yen, around 146.90 yen to the dollar, which means that buying back into export-related stocks is likely to be noted.
In addition, if the Nikkei average stock price continues to show strong stability even in a stalemate, individual investors are likely to turn to short-term trading in small and mid-cap stocks with high liquidity. The Growth 250 Index is currently battling the 200-day moving average, but if it surpasses this line, there is likely to be increased demand for small and mid-cap stocks.
ITO EN: 1Q operating profit decreased by 28.7% to 7.128 billion yen.
ITO EN <2593> announced its financial results for the first quarter of the fiscal year ending April 2025. Revenue increased by 3.2% to 125.039 billion yen compared to the same period last year, while operating profit decreased by 28.7% to 7.128 billion yen. The rising prices of raw materials such as coffee beans and vegetable juice had an impact. Advertising and publicity expenses increased due to the use of famous athletes in promotion, and personnel expenses also increased due to wage increases. In the food and beverage business, the Tully's Coffee coffee shop performed well.
Materials of concern in the morning session
- The Nikkei average rose (38700.87, +53.12).
1 dollar = 146.80-90 yen.
- The Nikkei futures in the Osaka night session rose (38780, +90 compared to the Osaka day session).
- Expectations of rate cuts in the United States.
Active share buybacks
Request for improvement in corporate value by the Tokyo Stock Exchange.
- Nikon <7731> launches an offensive with its exposure equipment, targeting the demand for automotive semiconductors.
- ASICs <7936> Executive Officer and Chief Officer of Global Talent Development, Mr. Horigome, is urgently promoting the development of global talent.
- NITTAN <6493> acquires Ena Metal, with revenues reaching a scale of 5 billion yen in fiscal year 2025.
- Shinmeiwa Kogyo <7224> develops equipment that generates ions using electromagnets, and irradiates gas over a wide range.
- Hitachi Construction Machinery <6305> invests in an Australian company to remotely monitor the environmental impact of mines.
- IHI <7013>: Green ammonia for thermal power, demonstrated in Indonesia.
- NTT <9432>: NTT Communications expands support for smart building construction, establishes new organization.
- Nomura Research Institute <4307>: Indexing of Japan's "air feeling" by attribute.
- Shimizu Construction <1803>: Instant transmission of 3D point cloud data from tunnel construction site with KDDI.
- Sanken Electric <6707>: Mass production of power ICs to reduce power loss.
- Hass Electric <3153>: President Shigeki Kiyomiya focuses on maintenance of electrical and air conditioning systems.
- Hitachi <6501>: Collaborating with HashPort for biometric authentication in Web3.
- Mitsui Sumitomo Construction <1821>: Development of artificial stone utilizing environmentally friendly concrete.
- Haseko Corp <1808>: Logistics facility in Hamura, Tokyo, for large-scale distribution in metropolitan areas.
- Teijin <3401>: Expansion of wool substitute polyester production facilities at its Thai subsidiary, Frontier.
- Chubu Electric Power <9502>: Submission of measures to prevent recurrence of document forgery.
- Kaneka <4118>: Production efficiency of medical devices in Hokkaido, with a new 10 billion yen fully automated factory.
- Kajima <1812>: Development of AI-based system to calculate the lifetime CO2 emissions of buildings.
- Tosoh <4042>: Collaboration with Kyoto Institute of Technology and others to enhance CO2 separation and recovery efficiency with membrane modules.
- Toda Construction <1860>: Participation in real estate development in the United States.
☆ Schedule of events in the morning session
-08:50 August monetary base (July: year-on-year: 1.0%)
-10:30 Australian Q4-Q6 ordinary balance of payments (estimate: -5 billion Australian dollars, Q1-Q3: -4.9 billion Australian dollars)