The Nikkei Average fell for the fourth day, ending the morning session at 39,286.52 yen (approximately 670 million shares traded), down 380.55 yen (-0.96%) from the previous day.
The US stock market rose on the 26th. The Dow Jones average rose 15.64 dollars (+0.04%) to 39127.80, the NASDAQ index rose 87.50 points (+0.49%) to 17805.16, and the S&P 500 rose 8.60 points (+0.16%) to close at 5477.90. As long-term interest rates rose, the opening fell. Federal Reserve Board (FRB) officials on the previous day showed a reluctance to rush to lower interest rates, which reduced expectations of a rate cut. Against the backdrop of growing caution ahead of the release of the PCE price index, which the FRB emphasizes, High-tech stocks remained strong and supported the market.
Due to a reaction to the significant increase in the previous day, the Tokyo market started with selling pressure. Financial stocks were bought as the yield on newly issued 10-year government bonds, an indicator of long-term interest rates, rose to 1.075%, but the market was in a downward trend centered on high-tech stocks. In addition to the impact of rights and dividends, the Nikkei Average fell about 1% from the previous day, but stopped falling at around 39,200 yen, a resistance level from May to June.
In the Nikkei average adopted stocks, JT<2914> and Canon<7751> fell due to the effects of rights and dividends, and Tokyo Electron<8035> and Sumitomo Pharma<4506> fell due to the reaction to the significant increase in the previous day. Screen HD<7735>, Daiichi Sankyo<4568>, Fast Retailing<9983>, and Kikkoman<2801> were weak.
On the other hand, Hitachi<6501> rose and surpassed Sony Group<6758> in market capitalization, and financial stocks such as Shizuoka Financial Group<5831>, T&D Holdings<8795>, Mitsubishi UFJ<8306>, Dai-ichi Life Holdings<8750>, and Mitsui Sumitomo<8316> were notable for their rise, as long-term interest rates were seen as a material factor for the rise in financial stocks.
In terms of industry, mining, rubber products, food, pharmaceuticals, other financing businesses, and other financing businesses declined, while banking, insurance, marine transportation, warehouse and transportation related businesses, pulp and paper, etc. rose.
Although the exchange rate was advancing with a trend of a weak yen and a strong dollar until around morning, hitting to 160 yen 80 sen per dollar. At lunchtime, it stopped and remained at 160 yen 40 sen per dollar as Taro Suzuki, the Finance Minister, expressed the view that "rapid one-sided movements are not desirable", but it is limited to a general verbal intervention.
In the afternoon, it is likely that we will be watching the exchange rate market and the interest rate market. We should pay attention to whether the Nikkei average can maintain the 39,200 yen level, where the decline stopped. Today, the Nikkei average may gradually shrink its decline in the afternoon because of the supply and demand impact of the rights and dividends.