Semiconductor manufacturing equipment manufacturer “long dark line on a 7-day schedule” -- will the US February CPI be announced next week · Spring Battle Concentration Response Day in Japan → value stock advantage

The Tokyo Stock Exchange on March 8 saw a mix of buying and selling. In response to significant continued growth in semiconductor-related stocks in the US, purchases of semiconductor-related stocks took precedence in the Tokyo market. However, the main semiconductor manufacturing equipment manufacturers all drew a long negative line on the daily chart for yesterday 7th. The rise was suppressed from the viewpoint that it created supply and demand lumps in the short term.

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The consumer price index (CPI) for February will be announced in the US on March 12. One month ago, when the January CPI was announced on February 13, there is a history where interest rates rose and stocks depreciated. On February 13, the NY Dow fell 1.3%, and the Nasdaq index fell 1.8%. The 10-year bond yield on the same day rose to 4.31% (+0.14% P compared to the previous day).

The details of the January CPI are shown below. (The ones in parentheses are for December last year)

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January CPI (YoY YoY)
Overall +3.1% (+3.4%)
Core +3.9% (+3.9%)

(month-on-month)
Overall +0.3% (+ 0.2%)
Core +0.4% (+0.3%)
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In the January CPI, the “year-on-year increase rate” of the core price index was 3.9%. It was viewed as “the inflation rate remains high.”

According to the January PCE price index announced on February 29, the growth rate of the “core price index” was +2.8% compared to the same month last year and +0.4% compared to the previous month. Both the CPI and PCE price index rose at a rate of increase of “+0.4% compared to the previous month” in January.

Then, in the February consumer price index announced on the 12th, it is a point of interest whether the core price index falls below “+0.4% compared to the previous month.”

Next week 13th is an intensive response day for the Spring Battle. It will affect the details of the monetary policy meeting to be announced next week. If the trend of “wage increases → monetary policy changes” intensifies, I think value stocks (low PBR stocks) will have an advantage in the Tokyo market.

Radio NIKKEI commentator Kamata Shinichi

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