In the morning of the 9th, pay attention to the following three points in the transaction.

■Buy on dips in high-tech stocks

J. Front's operating profit for the 2nd quarter increased by 100.0% to 39.3 billion yen.

■Key points in the morning session: JTEKT with new factory in India, production of electric power steering, etc.

■Buy on dips in high-tech stocks

On the 9th, the Japanese stock market is likely to develop into a stalemate after starting with a buy lead. On the 8th, the US market saw the NY Dow up 126 points, with the Nasdaq up 259 points. With suggestions from New York Fed President Williams and others that the option of a small rate cut remains, there were moments of decline. However, a movement to repurchase main stocks centered around expectations of a soft landing following the decline in crude oil futures, as well as the strong demand for artificial intelligence (AI) leading to buying of high-tech stocks like Nvidia, led to the market being pulled. The Chicago Nikkei 225 futures settlement price was 39,375 yen, up 415 yen from Osaka. The yen is trading around 148.20 yen to the dollar.

The Nikkei Stock Average is likely to start with buying as it adjusts to Chicago futures, with large tech stocks like Apple and Amazon.com being bought back in the US, and NVIDIA continuing to rise for 5 business days leading the rise in high-tech stocks. As a result, high-tech stocks which have a significant impact on the index are expected to lead the Nikkei Average. Advantest <6857> has been rising for 4 business days until the previous day, approaching the high of 7,456 yen on February 16, and if it sets a new high, it is expected to brighten the sentiment.

Furthermore, Nikkei 225 futures were seen being bought up to 39,520 yen in the night session, and closed at 39,410 yen, up 450 yen from the previous day. It was sold down to 38,830 yen just after the opening, but the +1σ of the Bollinger Band was being considered as a support line. The Nikkei average stock price also dropped to +1σ in the previous day's adjustment, making it likely to be aware of a rebound from the same level.

However, it is difficult to expect aggressive buying moves due to the escalation of tensions in the Middle East. In the morning, a wide range of stocks are expected to be bought due to trading related to the index, but the target stocks are likely to become more focused as time goes on. Amidst the possibility of increasing stagnation after the initial buying phase, trading is expected to focus on buying the dips of high-tech stocks and short-term value trading in stocks with thematic significance related to policies. In the US on the 9th, the Federal Open Market Committee (FOMC) minutes will be released. Also, ahead of the release of the US Consumer Price Index (CPI) for September on the 10th, it will be important to assess the results.

J. Front's operating profit for the 2nd quarter increased by 100.0% to 39.3 billion yen.

The performance for the second quarter of the fiscal year ending in February 2025, announced by J. Front <3086>, showed a 9.3% increase in sales revenue to 209.3 billion 68 million yen compared to the same period last year. Operating profit also increased by 100% to 39.3 billion 64 million yen. With domestic sales performing well and strong inbound sales contributing, sales revenue increased from the previous year, business profit increased, and consolidated interim profit attributable to the parent company's owners increased from the previous year, resulting in record profits at each profit level.

Materials of concern in the morning session

- The NY Dow closed higher (42,080.37, +126.13)

The Nasdaq composite index rose (18182.92, +259.01).

1 Dollar = 148.20-30 Yen.

Chicago Nikkei futures rose (39375, +415 compared to Osaka daytime).

SOX index rose (5266.10, +69.30).

VIX index fell (21.42, -1.22).

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.

JTEKT <6473> plans to build a new factory for producing electric power steering, etc.

ENEOS HD <5020> Group's JX Metal applies for listing on the Tokyo Stock Exchange, accelerating the development of semiconductor materials, etc.

Vector acquisition of JT <2914> completed, expanding its presence in the US tobacco market.

Mitsubishi Corporation <8058> accelerates the development of digital talent, incorporating AI and other technologies to create new businesses.

Toyota Tsusho <8015> to provide used car information in emerging countries, expanding the deployment of high-quality Japanese cars.

Nihon Seiki <7287> to release a retrofit type car-mounted HUD, possibly within the fiscal year.

Honda <7267> promotes next-generation EVs with world-first technology in vehicle welding.

Tokai Rika <6995> adopts a wheel detachment prediction system for the Ministry of Land, Infrastructure, Transport and Tourism's verification surveys.

Yoko Engineering <6330> supports operations in Bolivia with anomaly prediction capabilities.

Meidensha <6508> gains attention for its lightning protection device "Shundei" due to an increase in lightning strikes, with cumulative shipments exceeding 100 units.

NTT <9432> achieves long-distance transmission of HDMI signals, balancing instant and high definition.

Taiyo Techno Electronics <6663> develops high-density wiring with copper plating for printed circuit boards.

Fujitsu <6702> globally offers the enterprise LLM 'Takane' for internal use environments.

Toshiba Tec <6588> establishes a new company through the utilization of POS data.

Panasonic HD <6752> expands its European heat pump heating capabilities to cultivate energy-saving demand.

NEC <6701> and Ryukyu Asahi Broadcasting to introduce AI news anchors in January next year, automatically generating visuals based on scripts.

NTT <9432> Group companies like NTT-AT are enhancing the performance of transparent power-generating glass through multi-cell technology.

Asahi Kasei <3407> collaborates with Italian companies to produce CNF for 3D printing resins.

Nishimatsu Construction <1820> visualizes the data of chemical injection in tunnel construction in 3D and analyzes the pressure.

KH Neochem <4189> exhibited marine biodegradable resin at the high-performance plastics exhibition.

JFEHD <5411> JFE Steel will double the production capacity of non-oriented electrical steel sheets in Kurashiki.

☆ Schedule of events in the morning session

Extraordinary Diet session at the end of the session.

10:00 NZ Reserve Bank announces policy interest rates (expected to be reduced by 0.50 points).