The Nikkei Average continued to decline slightly. The forward market transaction was closed at 38789.52 yen (estimated turnover of 920 million shares), which was 65.85 yen lower (-0.17%) compared to the previous day.
The US stock market was mixed on the 28th. The Dow average closed at 38852.86 dollars with a depreciation of 216.73 dollars (-0.55%), the Nasdaq closed at 17019.88 with a 99.09 point increase (+ 0.59%), and the S&P 500 at 5306.04 with a 1.32 point increase (+ 0.02%). Sales that were wary of hawkish statements by senior US Federal Reserve (Fed) officials intersected and purchases in the semiconductor sector intersected, and after getting close, things were mixed. In addition to the May consumer confidence index rising for the first time in 4 months, interest rate increases were frowned upon due to poor bid results for 2-year bonds and 5-year bonds, and the Dow continued to fall and remained soft throughout the day. Meanwhile, the Nasdaq ended with a record high, led by an increase in NVIDIA.
Since the NASDAQ hit an all-time high in the US market, etc., the Tokyo market started trading with a slight buying advantage. There was also a scene where the Nikkei Average was in the 39,000 yen range since 5/23, but as long-term interest rates rose, buying did not continue, and front-market transactions were closed in a negative zone compared to the previous day. However, since stocks benefiting from rising interest rates, such as insurance and banks, were bought, trading prices in the Prime Market were 2.2 trillion yen, and sales increased compared to the previous day.
Among stocks adopted by the Nikkei Average, Mitsubishi Electric (6503) fell since the ROE target for fiscal year 25 was lowered from 10% to 9%, and negative reports from domestic securities companies influenced it, and Teijin (3401) was also sold. Also, when Mitsubishi Heavy Industries (7011) announced a new medium-term plan, it declined due to a sense that materials were exhausted ahead of time. Keisei Electric Railway ＜9009＞, Kawasaki Shigeru ＜7012＞, Hitachi Zosen ＜7004＞, and Daikin ＜6367＞ were sold.
Meanwhile, insurance stocks such as Sompo Holdings ＜8630＞, T&D Holdings ＜8795＞, MS & AD ＜8725＞, and Dai-ichi Life Holdings ＜8750＞ were bought, and bank stocks such as Concordia ＜7186＞, Shizuoka Financial Group ＜5831＞, and Mitsubishi U ＜FJ8306＞ rose. Also, SoftBank G (9984) was bought using reports from some domestic securities companies as materials.
By industry, shipping, rubber products, fisheries/agriculture and forestry, land transportation, air transportation, etc. declined, while insurance, mining, banking, other products, precision instruments, petroleum and coal products, etc. rose.
The upward trend continues, with yields on new 10-year government bonds, which are indicators of long-term interest rates, temporarily rising to 1.065%. However, since US 10-year bond yields have also risen to 4.5%, the Japan-US interest rate difference remains around 3.4%. The exchange rate swings to 157 yen 20 yen per dollar, which is lower than yesterday, but the upper price is getting heavier. The Bank of Japan deliberation committee member Adachi Seiji made a dovish statement at the Kumamoto Prefecture Financial and Economic Meeting in the morning that “maintaining an accommodative environment is important until there is confidence in achieving (sustainable and stable price increases),” but since he also stated “comprehensively considering supply and demand, etc., and gradually reducing amounts” regarding government bond purchases, there is also a possibility that interest rates will continue to rise. It seems that it will be a stimulus for bank stocks and insurance stocks, but the wait-and-see mood intensified in the Nikkei Average later, and it seems that the trend in the negative zone compared to the previous day will continue.