In the afternoon of the 5th's trading, the following 3 points are worth noting.
The Nikkei average has risen for six consecutive days, but is top-heavy after reaching an all-time high during trading hours.
The dollar-yen rate is sluggish, with a focus on Japanese stocks.
The top contributors to price increases were Toho Electric(8035) and First Retailing(9983), in that order.
The Nikkei average has risen for six consecutive days, but is top-heavy after reaching an all-time high during trading hours.
The Nikkei average continued to rise for the sixth consecutive day. It closed the morning session at 41,051.49 yen (+0.34%) higher than the previous day, with an estimated trading volume of 0.8 billion shares. In terms of product structure, the operating income of products worth 10-30 billion yuan was 401/12.88/0.06 billion yuan respectively.
The US stock and bond markets were closed due to Independence Day on the 4th. The exchange rate was bought up to 161.33 yen per dollar before temporarily dropping to 160.95 yen and ending trading at 161.24 yen.
With no noticeable trading materials due to the closure of the US market, the Tokyo market started trading on a slightly bullish tone. While the Nikkei average witnessed scenes of updating its all-time high during the trading hours due to the waves of hitting the highest points from the previous day, TOPIX was slightly down, and proactive buying was kept in check prior to the release of tonight's US employment statistics.
Among the listed stocks in the Nikkei average, Kawasaki Heavy Industries <7012>, which was sold yesterday, rebounded. Mitsukoshi Isetan <3099> was also bought on the basis of a positive report by a domestic securities company. In addition, semiconductor stocks such as Screen HD <7735>, Socionext <6526>, and Tokyo Electron <8035> rose. Also bought were IHI <7013>, Mitsubishi Electric <6503>, ZOZO <3092>, and Daiichi Sankyo <4568>, among others.
On the other hand, marine transportation stocks such as Nippon Yusen <9101>, Mitsui O.S.K. Lines <9104>, and Kawasaki Kisen <9107> were sold, and automobile stocks such as Honda <7267>, Nissan <7201>, and Mazda <7261> were uneventful due to the moderation of the yen's depreciation and the dollar's appreciation. Furukawa Electric <5801>, Mitsui Chemicals <4183>, and Sumitomo Electric Industries <5802> were also sold.
In terms of industry sectors, mining, pharmaceuticals, services, retail trade, electric appliances and others rose, while marine transport, electric and gas industry, textiles and apparels, transportation equipment, nonferrous metals and others declined.
As we approach the announcement of the June US employment statistics tonight, the afternoon Tokyo market is expected to take a wait-and-see attitude, and both the Nikkei average and TOPIX are likely to see a pause in buying. With both indexes having achieved their all-time highs, there may also be a feeling of accomplishment. In the lead-up to the French election this weekend, there is a possibility that profit-taking selling of rising stocks such as Mitsubishi Heavy Industries <7011> and Hitachi <6501> may increase, but this is a temporary adjustment and there is no need to be overly pessimistic.
The dollar-yen rate is sluggish, with a focus on Japanese stocks.
The dollar-yen rate was sluggish in the morning of May 5th Tokyo market. When the Nikkei average stock price, which was in the highest-value range, turned negative, it fell from 161 yen 39 sen to 160 yen 79 sen due to a decline in yen selling. Later, when buybacks of Japanese stocks came in and turned positive, the dollar returned to around 161 yen.
The trading range so far was from 160 yen 79 sen to 161 yen 39 sen for the dollar-yen rate, from 173 yen 98 sen to 174 yen 46 sen for the euro-yen rate, and from 1.0809 dollars to 1.0818 dollars for the euro-dollar rate.
Check stocks for the afternoon session
Four stocks, including Daido Rimitade(3205) and G-FACTORY(3474), hit the daily upper limit price.
*Includes temporary stopper (indicated price)
The top contributors to price increase were Toho Electric(8035) and First Retailing(9983), in that order.
Economic indicators and remarks by important people
[Economic indicators]
In May, household spending in Japan decreased by 1.8% compared to the previous year (expected: +0.3%, April: +0.5%).
[Important Person's Remarks]
-Minister of Finance Suzuki
"A weak yen is pushing up import prices."
"Carefully monitor the foreign exchange market and the stock market."
14:00 May Leading Economic Index Prelim (April: 110.9)
15:00 May Mining and Manufacturing Production in Germany (MoM expected: +0.2%, April: -0.1%)