In the afternoon of the 26th, we want to pay attention to the following three points in the transaction.

- The Nikkei average rebounded significantly, approaching 39,000 yen due to the depreciation of the yen and the rise in semiconductor stocks.

- The dollar-yen rate remains firm with continued selling of the yen.

Australia's May retail sales: +0.6% (MoM estimate: +0.3%, April: +0.1%).

■ The Nikkei average rebounds significantly, approaching 39,000 yen due to the depreciation of the yen and the rise in semiconductor stocks.

The Nikkei average rebounded significantly. It ended the morning session at 38,812.94 yen, up 942.68 yen (+2.49%) from the previous day, with an estimated volume of 850 million shares.

On the 25th, the US stock market was mixed. The Dow Jones fell by 293.47 points (-0.70%) to 41,914.75, the Nasdaq rose by 7.69 points (+0.04%) to 18,082.21, and the S&P 500 fell by 10.67 points (-0.19%). The OECD's upward revision of the global economic growth forecast led to buying sentiment, causing an increase after the opening bell. However, profit-taking sales intensified near record highs for the Dow, and August new home sales decreased from July, turning into a significant decline. The Nasdaq was weighed down by rising long-term interest rates, but the semiconductor sector remained strong, providing support and closing slightly higher. The Dow expanded its losses towards the end, ending the day with mixed results.

Based on the depreciation of the yen in the foreign exchange market, the Tokyo market started trading with a buying preference. Semiconductor stocks rose from the open, causing the Nikkei average to break through the 75-day moving average line. With the yen weakening and the dollar rising to the 144.90 yen level, capital flowed towards export-related large-cap stocks, resulting in the Nikkei average expanding its gains by over 900 yen from the previous day.

In the Nikkei average adopted stocks, semiconductor stocks such as Tokyo Electron Ltd. Unsponsored ADR <8035>, Advantest <6857>, Socionext <6526>, Screen HD <7735>, and Sumco <3436> rose in response to the good earnings of Micron in the United States. In addition, Ebara Corporation <6361>, Disco <6146>, Mitsukoshi Isetan Holdings <3099>, Hitachi <6501>, and SoftBank Group <9984> were also bought.

On the other hand, Kokando Pharmaceuticals <4151>, which plummeted yesterday, continued to be sold, as well as Lasertec <6920> showing weakness. In addition, Astellas Pharma <4503>, Nissan Motor Co <7201>, Mitsubishi Motors <7211>, and Hino Motors <7205> declined. Tokai Carbon <5301>, Aozora Bank <8304>, and Sumitomo Metal Mining <5713> were also sold.

While all sectors were rising, other products, metal products, electric appliances, machinery, and precision instruments showed noticeable gains.

Today is the final trading day with rights attached, and individual investors are directing funds towards high-dividend yield stocks and preferential stocks, including September settlement companies and companies with interim dividend systems for March settlement, contributing to the rise in the Nikkei average. In the futures market, there is also a market view that about 1.2 trillion yen will flow into 225 futures and TOPIX futures related to dividend payments, indicating a good supply-demand balance. If Chinese stocks rise sharply in the afternoon session, the Nikkei average may also aim to recover to the 39,000 yen level.

■ Firm Dollar-Yen, Continued Yen Selling

On the morning of the 26th at the Tokyo market, the Dollar-Yen exchange rate showed a firm movement, rising from 144.44 yen to 144.94 yen. With the sharp rise in the Nikkei average stock price, the preference for risk led to a strong yen sell-off, pushing up major currencies. Also, the Shanghai Composite Index and the Hong Kong Hang Seng Index showed strength, supporting the yen sell-off.

The trading ranges so far are as follows: Dollar-Yen from 144.44 yen to 144.94 yen, Euro-Yen from 160.85 yen to 161.54 yen, Euro-Dollar from 1.1129 dollars to 1.1141 dollars.

Check stocks for the afternoon session

・Kodama Chemical Industry <4222>, A-eye <4388>, two stocks hit the daily limit.

*Includes temporary stopper (indicated price)

Australia's May retail sales: +0.6% (MoM estimate: +0.3%, April: +0.1%).

Economic indicators and remarks by important people

[Economic indicators]

・U.S. August new home sales: 0.716 million units (estimate: 0.7 million units, July: 0.751 million units)

[Important Person's Remarks]

・Bank of Japan monetary policy meeting minutes (July 30-31)

"It is necessary to raise interest rates in a timely and gradual manner while confirming the economic and price reactions" (a committee member).

"There is a large uncertainty surrounding the level of the neutral interest rate, without raising long-term and short-term interest rates" (same).

"The neutral interest rate should be at least 1%, avoiding rapid rate hikes and adjusting in a timely and gradual manner" (same).

"Financial normalization should not become an end in itself" (one committee member).

Not applicable.

・16:30 Swiss National Bank Policy Interest Rate Announcement (Expected 0.25 point reduction)