In the morning session of the 20th trading day, there are three points to pay attention to as follows.

Investors seem to have a strong appetite for buying semiconductor and AI-related stocks on dips.

Okano Valve Co., Ltd. has upwardly revised its operating profit from JPY 492 million to JPY 880 million.

Focus of the morning session: Toppan HD has established a new "building materials" plant in Turkey, and is expanding its facilities in the US.

Investors seem to have a strong appetite for buying semiconductor and AI-related stocks on dips.

The Japanese stock market on the 20th is expected to have a slightly bearish tone, but overall it is likely to be a stagnant market. On the 19th, the US market was closed for Juneteenth. The European markets fell in Germany, France and Italy. As foreign flows are limited in the absence of the US market, the market is likely to be difficult to trend. Although selling is expected to lead from the weak trend in Europe, it is unlikely to lead to a selling trend. The exchange rate is at 158 yen per dollar.

The Nikkei 225 futures temporarily fell to 38,300 yen in the night session, below the -1σ of the Bollinger Band. Despite the limited number of market participants, it is likely that there will be movements to adjust positions, as it was unable to maintain the -1σ level it broke through the previous day. Profit-taking is expected to be easier for high-tech stocks, which continue to show strong price movements. However, there seems to be strong buying interest in semiconductor and AI-related stocks on dips, such as Nvidia becoming the world's largest company by market capitalization. If there are short-term selling moves, it could also be a good opportunity to buy on dips. However, with limited market participants, there are no signs of widespread interest in AI-related stocks. It is likely to be movements for short-term trading in liquid stocks. For small and mid-cap stocks, as it becomes a trading conducted primarily by individuals, it requires swift action, as money tends to concentrate but also swiftly exits. For stocks that have collapsed due to profit-taking after a round of buying, there may also be a trend to buy on dips after a round of selling.

However, as the number of market participants is limited, there is no sign of a widespread interest in AI-related stocks. It is likely to be movements for short-term trading in liquid stocks. For small and mid-cap stocks, as it becomes a trading conducted primarily by individuals, it requires swift action, as money tends to concentrate but also swiftly exits. For stocks that have collapsed due to profit-taking after a round of buying, there may also be a trend to buy on dips after a round of selling.

The Nikkei average price started with buying on the previous day, but was restricted around the 25-day line and turned lower in the afternoon. As foreign flows were limited, movements to adjust positions were predominant after a round of buying. It is likely to fall around the -1σ of the Bollinger Band (38,460 yen) today, but if there is a stable market at the -1σ level, it may lead to buying on dips.

Okano Valve Co., Ltd. has upwardly revised its operating profit from JPY 492 million to JPY 880 million.

Okano Baru <6492> announced a revision of its financial estimates for the November 2024 fiscal year. Revenue has been revised upwards from 7.243 billion yen to 7.506 billion yen, and operating profit from 492 million yen to 880 million yen. The company is expected to exceed its initial estimates due to the earlier construction work for the resumption of operations of the Shimane Nuclear Power Plant No. 2, as well as the strong sales of replacement parts for thermal and nuclear power plants. Inspection work at the Joetsu Thermal Power Plant and the Nanao Ota Thermal Power Plant due to the Noto Peninsula earthquake has also increased.

Materials of concern in the morning session

The Nikkei average price rose (38,570.76, +88.65).

1 dollar = 158.00-10 yen.

Expectations for inflation to ease in the US.

Request for improvement in corporate value by the Tokyo Stock Exchange.

Toppan HD established a new "building materials" plant in Turkey and is expanding its facilities in the US.

Panasonic HD's Panakonect doubles talent exchange with Blue Yonder.

Subaru aims to sell electric vehicles for 50% of total sales in 2030.

KDDI will unveil a new service with Lawson this fall.

Hitachi Rail System expects sales of the control department to account for 57% of the fiscal year ending this March, thanks to a business acquisition.

Chiyoda Kasei has filed a request for Prozacri to withdraw from a US LNG project.

J-Power will terminate business of Tosa Electric Power Co., Ltd. by the end of this fiscal year.

Sumitomo Corporation has acquired a Malaysian company in a move to deal with the needs of pre-illness and preventive medicine.

H-One<5989> will invest 2 billion yen in FCV plates to strengthen mass production system.

IHI<7013> completed Yatsushiro biomass power plant, which uses wood chips from Kumamoto prefecture as its fuel.

EIZO<6737> doubles monitor production in China through subsidiary transfer and factory expansion.

Advantest<6857> develops high-precision particle measuring equipment for drug discovery and bio applications.

MinebeaMitsumi<6479> opens development base in Slovakia to strengthen automotive and industrial parts businesses.

Canon<7751> plans to release 3D imaging lenses for Apple's goggle-type terminal by year-end.

ENEOS HD<5020>'s JX Metals increases materials production for next-generation semiconductors in Chigasaki and other locations.

Asahi Kasei<3407> provides N-Aluminum nitride single crystal substrates to achieve usable area coverage of 99% or more.

Nakanohito Construction<1827> wins contract for large-scale collective housing project in Singapore.

Chubu Electric Power<9502> starts operation of its hydropower plant in Gifu in fiscal 2027.

Mitsubishi Gas Chemical<4182> supplies methanol to domestic car carrier ships.

Toyo<4042> plans to raise prices of its paste PVC resin next month.

Kurita Industries<6370> establishes water treatment chemicals sales subsidiary in India.

☆ Schedule of events in the morning session

June monthly economic report by the Japanese government.

07:45 New Zealand's Q1 GDP flash (YOY estimate: +0.2%, Oct-Dec: -0.3%)

10:15 China's one-year loan prime rate (currently 3.45%)