I would like to pay attention to the following 3 points in the 2-day backstage transaction.

・The Nikkei Average rebounded slightly, and trading centered around position adjustments in the valley of the major holidays

・The dollar and yen are solid, and interventional observations are also dollar buybacks

・The top contributor to price increases is East Elec ＜8035＞, and Daiichi Sankyo ＜4568＞ is in the same 2nd place

■The Nikkei Average rebounded slightly, and trading centered around position adjustments in the valley of the major holidays

The Nikkei Average rebounded slightly. The front-end transaction was closed at 38299.71 yen (estimated turnover of 700 million shares), which was 25.66 yen higher (+0.07%) compared to the previous day.

The US stock market was mixed on the 1st. The Dow average closed at 37903.29 dollars, which was 87.37 dollars higher (+ 0.23%), the NASDAQ was 52.34 points lower (-0.33%) at 15605.48, and the S&P 500 closed at 5018.39, which was 17.30 points lower (-0.34%).

Employment statistics in the private sector surpassed expectations and were mixed. While the outlook intensified ahead of the announcement of the US Federal Open Market Committee (FOMC) results, the market remained steady as long-term interest rates declined because the number of March JOLT job offers and the April ISM manufacturing business climate index fell below expectations. After that, the US Federal Reserve (Fed) decided to leave policy interest rates unchanged as predicted by the FOMC, and although Chairman Powell stated “there is little possibility that the next action will raise interest rates,” the threat to interest rate hikes receded, and buybacks accelerated. It stalled towards the end of the game, the Dow reduced its gains, and the NASDAQ fell back into a negative zone and ended with mixed results.

US stocks were mixed, but since the exchange rate showed rough price movements, such as the appreciation of the yen and depreciation of the dollar progressing to the 153 yen level of 1 dollar at one time overseas time, the Tokyo market began trading with a selling advantage. There was also a scene where the Nikkei Average fell below 38,000 yen after the donation, but in response to the settlement of exchange rates, the decline gradually narrowed after the first round of sales. The fact that there were few participants in the valley of the major holidays and they stayed in position adjustment trading was also successful, and it was a turning point.

Among stocks adopted by the Nikkei Average, speculation took precedence because it was before financial results were announced, and in addition to Sumitomo Corporation ＜8053＞ and Mitsubishi Corporation ＜8058＞ being bought, Mitsui & Co. ＜8031＞, Toyota Tsusho ＜8015＞, and ITOCHU ＜8001＞ are also strong. Also, Lasertec ＜6920＞, Kansai Electric Power Company ＜9503＞, and Daiichi Sankyo ＜4568＞ were also bought, and Mitsui Fudosan (8801) also rose in response to the Tsukiji redevelopment announcement.

Meanwhile, in addition to Sumitomo Pharma ＜4506＞ being drastically reduced, TDK ＜6762＞ and Murata Seisakusho ＜6981＞ are not even there. Also, since the exchange rate appreciated the yen and depreciation of the dollar progressed compared to the previous day, automobile-related products such as Mazda ＜7261＞, Isuzu Motors ＜7202＞, and SUBARU ＜7270 ＞ were also sold.

By industry, while the wholesale industry, electricity/gas industry, real estate industry, insurance industry, pharmaceuticals, etc. rose, shipping, banking, glass/earth and stone products, chemicals, air transportation, etc. declined.

The movement to actively trade Japanese stocks continues to be held back due to the cleavage of major holidays and the fact that current exchange rate trends are hectic. The Nikkei Average and TOPIX will continue to clash at the previous day's closing price level, and it seems that interest will concentrate on stocks announcing financial results. Afterwards, Mitsubishi Corporation is scheduled to announce financial results at 13:00, and Ricoh Leasing (8566) at 14:00. Marubeni ＜8002＞ and Sumitomo Corporation are also planning to announce financial results today, so there seems to be interest in trading company stocks in the back, just like the front market.

■The dollar and yen are solid, and interventional observations are also dollar buybacks

There was a steady price movement of the dollar and yen in the Tokyo market on the morning of the 2nd, and the price rose from 154 yen 25 yen to 156 yen 28 yen. Yen purchases, which are seen as Japan's exchange intervention, declined, but dollar buybacks intensified in view of the continuation of tightening policies by the US Federal Reserve (Fed).

The trading range up to this point is 154 yen 25 yen to 156 yen 28 sen for the dollar and yen, 165 yen 31 yen to 167 yen 38 sen for the euro and yen, and 1.0707 to 1.0720 dollars for the euro dollar.

■Backstage check stocks

・The 2 stocks Green East ＜9212＞ and FRS ＜9423＞ have a high stop

*Includes temporary stop height (sign value)

・The top contributor to price increases is East Elec ＜8035＞, and Daiichi Sankyo ＜4568＞ is in the same 2nd place

■Economic indicators and statements from key figures

[Economic indicators]

・Daily/April monetary base: +2.1% year over year (March: +1.6% year over year)

・Australia's March trade balance: +5,024 billion Australian dollars (forecast: +7.30 billion Australian dollars, February: +6.591 billion Australian dollars ← +7.28 billion Australian dollars)

[Remarks by VIPs]

・Kanda Treasurer

“There is nothing we can talk about right now about the presence or absence of exchange intervention”

・Bank of Japan Monetary Policy Meeting Minutes (March 18-19)

“It is appropriate to slowly and steadily advance financial normalization over time”

“Government bond purchases will not be used as active monetary policy instruments in the future” (several committee members)

＜Domestic＞

・Nothing in particular

＜Overseas＞

・ 15:30 Swiss Consumer Price Index for April (year-on-year forecast: +1.1%, March: +1.0%)