In the morning session of July 2nd trading, three points deserve attention.
The impact on the Japanese economy due to the progress of the weakening of yen is a concern.
Daisueki, Q1 operating profit decreased by 0.7% to 3.906 billion yen.
Important material for the morning session: Tokyo Electron, laser peeling equipment for semiconductor 3D installation, to be launched this year.
The impact on the Japanese economy due to the progress of the weakening of yen is a concern.
The Japanese stock market on the 2nd day is likely to be under strong pressure due to the progress of yen depreciation. On the 1st day, NY Dow was up 50 dollars and Nasdaq was up 146 points. In response to the results of the French National Assembly elections, it was a good situation where excessive vigilance subsided and the market was dominated by buying. However, the market also saw a decline due to concerns about growth slowdown, as the June ISM manufacturing index was slightly lower than market estimates and activity contracted for the third consecutive month. The rise in long-term interest rates in the US also weighed on the market, and NY Dow remained around the previous day's closing price. The Chicago Nikkei average futures are trading at 39,530 yen, 140 yen lower than the Osaka comparison. The exchange rate is hovering around 161.40 yen per dollar.
As a result of the effort to bring down the Chicago futures, there seems to be some selling leading. In the US market, a part of large tech stocks and semiconductor stocks were bought, but the Nikkei 225 futures were also bought up to 39,810 yen in the night session, but fell towards the end. In the foreign exchange market, following the French National Assembly elections, there was a flow of buying euros and selling yen, and the development was that yen was being sold against the dollar. It is likely to make it difficult to handle while further concerns remain over the impact on the Japanese economy due to the progress of the weakening of yen.
The resistance line for the Nikkei average stock price may be noticed as +2σ (39620 yen) of the Bollinger band, as it follows the trend while keeping an eye on the movement of high-tech stocks with large index impact. However, if the slowness of the rebound is noticed, it is likely to lead to selling for position adjustment. The Bollinger Band is moving upward, and trend formation based on this is expected. However, as the July 4th market in the U.S. is a public holiday, and as the release of U.S. employment statistics is also pending over the weekend, foreign flows are expected to be limited.
Therefore, although the willingness to buy on dips is considered strong, it is difficult to expect an active trend of chasing the upside. As for market selection, a shift of funds to exports-related industries due to the progress of yen depreciation is observed, and financial sectors are expected to be targeted for selection against the background of the rise in long-term interest rates. The NT ratio (Nikkei Average / TOPIX) is showing a downward trend, and funds are likely to shift to TOPIX-type stocks such as value stocks.
Daisueki, Q1 operating profit decreased by 0.7% to 3.906 billion yen.
Daiichi Kasei <9793> announced that its operating profit for the first quarter of the 2025 fiscal year ending in February was 3.906 billion yen, down 0.7% from the same period last year, while revenue was 16.703 billion yen, down 6.5% YoY. Daiichi Kasei Environment Solution continued to aggressively expand its consulting business in order to increase orders for high-value-added projects, but suffered a significant decline in revenue and profit due to the end of a large-scale soil treatment project that was ordered in the previous year. The earnings forecast for the February 2025 period is sales of 65.6 billion yen, down 5.2% from the previous year, and an operating profit of 14.0 billion yen, down 5.5% YoY, which is consistent with the initial plan.
Materials of concern in the morning session
Nikkei Average is rising (39,631.06, +47.98).
NY Dow is rising (39,169.52, +50.66).
Nasdaq Composite Index is rising (17,879.30, +146.70).
1 dollar = 161.40-50 yen.
The SOX index is rising (5,477.15, +4.89).
The VIX index is falling (12.22, -0.22).
US crude oil futures are rising (83.38, +1.84).
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
Tokyo Electron＜8035＞, laser peeling equipment for semiconductor 3D installation, will be launched this year.
NTT DATA G＜9613＞ to Establish New Company for Satellite Observation Services to Create Digital 3D Maps.
Yokohama Rubber＜5101＞ to Build New Plant in China, to start operating in spring 2026, with an annual capacity of 9 million EV tires.
- LINE Yahoo <4689>: Relationship with South Korean neighbor is difficult to move capital in the short term. - Air Water <4088>: Acquires poi app operation for DX promotion of market. - JTEKT <6473>: Merges subsidiary related to bearing manufacturing and sales for collaboration. - Marubeni <8002>: Establishes new company for analysis of international affairs, among other things. - DAIICHIKOSHO <7458>: Partners with Zenken and introduces Indian caregivers. - Hino Motors <7205>: Verifies operation management and expands ride-sharing service. - Inoue Agricultural Machinery <6310>: Integrates 6 sales companies in January next year. - Yamabiko <6250>: Develops hybrid machines in collaboration with Aerology Lab. - Ricoh <7752>: Establishes new company with enhanced multifunctional machine engines with Toshiba Tec. - Sumitomo Electric Industries <5802>: Reorganizes optical instruments business by merging subsidiaries. - Alps Alpine <6770>: Proposes mass production of ICs for external sales for non-contact panel use. - TDK <6762>: Expands lineup of TMR angle sensors for improving safety of self-driving cars. - Tokyo Steel Manufacturing <5423>: Starts receiving orders for green steel using non-fossil fuel certificates. - Tokyo Gas <9531>: Acquires certification for clean gas certificate system and installs methane synthesis facility in Yokohama. - Tokyo Tatemono <8804>: Develops customized logistics facility in Thailand. - Sumitomo Chemical <4005>: Raises prices of MMA monomer from this month. - Mitsui Chemicals <4183>: Revises growth strategy and maintains core operating income of 250 billion yen in 30th fiscal year. - Nomura Real Estate Holdings <3231>: Completes construction of development area in Hanoi, Vietnam and delivers over 90%. - Sumitomo Chemical <4005>: Commences operation of new building in Sodegaura, Chiba to consolidate environmental research and development. - 8:50 am: Monetary base in June (+0.9% YoY in May).
- Air Water <4088>: Acquires poi app operation for DX promotion of market.
- JTEKT <6473>: Merges subsidiary related to bearing manufacturing and sales for collaboration.
- Marubeni <8002>: Establishes new company for analysis of international affairs, among other things.
- DAIICHIKOSHO <7458>: Partners with Zenken and introduces Indian caregivers.
- Hino Motors <7205>: Verifies operation management and expands ride-sharing service.
- Inoue Agricultural Machinery <6310>: Integrates 6 sales companies in January next year.
- Yamabiko <6250>: Develops hybrid machines in collaboration with Aerology Lab.
- Ricoh <7752>: Establishes new company with enhanced multifunctional machine engines with Toshiba Tec.
- Sumitomo Electric Industries <5802>: Reorganizes optical instruments business by merging subsidiaries.
- Alps Alpine <6770>: Proposes mass production of ICs for external sales for non-contact panel use.
- TDK <6762>: Expands lineup of TMR angle sensors for improving safety of self-driving cars.
- Tokyo Steel Manufacturing <5423>: Starts receiving orders for green steel using non-fossil fuel certificates.
- Tokyo Gas <9531>: Acquires certification for clean gas certificate system and installs methane synthesis facility in Yokohama.
- Tokyo Tatemono <8804>: Develops customized logistics facility in Thailand.
- Sumitomo Chemical <4005>: Raises prices of MMA monomer from this month.
- Mitsui Chemicals <4183>: Revises growth strategy and maintains core operating income of 250 billion yen in 30th fiscal year.
- Nomura Real Estate Holdings <3231>: Completes construction of development area in Hanoi, Vietnam and delivers over 90%.
- Sumitomo Chemical <4005>: Commences operation of new building in Sodegaura, Chiba to consolidate environmental research and development.
☆ Schedule of events in the morning session
Monetary base in June (+0.9% YoY in May) at 8:50 am.
- 10:30 Summary of the June Board of Directors meeting of Reserve Bank of Australia.