Tokyo market summary: Nikkei average rises for the 4th day, reassuring feeling of buying with 'Dovish BOJ', facing heavy challenges despite tailwind of yen depreciation and US rate cuts.
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Good evening at the close. The summary of today's stock market is as follows. Thank you.![]()
●The Nikkei Average closed at 37,940.59 yen, up 216.68 yen from the previous trading day.
●The yen faces heavy challenges despite the tailwind of the US rate cut.
●[Breaking News] Governor Ueda: There is ample time to determine policy, monitor the trends of financial capital markets at home and abroad, and assess the international economic situation.
●"Datacenter" ranks 5th, with renewed interest in semiconductor-related stocks driving the theme resurgence. <Hot Topics>
●MeowMeow Coin rose by 40% in a week, as risk appetite increased following the FRB rate cut.
Hot stocks: $Mitsubishi Heavy Industries (7011.JP)$、 $Hitachi (6501.JP)$
- Moomoo News Japan Stock Sherry
●The Nikkei Average closed at 37,940.59 yen, up 216.68 yen from the previous trading day.
●The yen faces heavy challenges despite the tailwind of the US rate cut.
●[Breaking News] Governor Ueda: There is ample time to determine policy, monitor the trends of financial capital markets at home and abroad, and assess the international economic situation.
●"Datacenter" ranks 5th, with renewed interest in semiconductor-related stocks driving the theme resurgence. <Hot Topics>
●MeowMeow Coin rose by 40% in a week, as risk appetite increased following the FRB rate cut.
Hot stocks: $Mitsubishi Heavy Industries (7011.JP)$、 $Hitachi (6501.JP)$
- Moomoo News Japan Stock Sherry
Market Overview
The Nikkei average stock price on the Tokyo stock market today closed at 37,940.59 yen, up 216.68 yen from the previous trading day, temporarily exceeding the psychological milestone of 38,000 yen for the first time in three weeks. The Tokyo Stock Price Index (TOPIX) closed at 2,656.73, up 14.38 points. It passed without any major fluctuations through decisions such as the monetary policy meetings between Japan and the United States, with buying re-entering the market. However, due to the recent sharp rise, some selling pressure emerged, keeping the upper limit in check.
The Nikkei average stock price on the Tokyo stock market today closed at 37,940.59 yen, up 216.68 yen from the previous trading day, temporarily exceeding the psychological milestone of 38,000 yen for the first time in three weeks. The Tokyo Stock Price Index (TOPIX) closed at 2,656.73, up 14.38 points. It passed without any major fluctuations through decisions such as the monetary policy meetings between Japan and the United States, with buying re-entering the market. However, due to the recent sharp rise, some selling pressure emerged, keeping the upper limit in check.
Top News
Facing heavy challenges despite the tailwind from the yen's decline and the US interest rate cut.
The yen recorded a significant decline last week, the largest in about five months, and the downward pressure continues on the morning of the 24th. The 0.5-point interest rate cut by the US Federal Reserve is the background, but the cautious stance of Chairman Powell is also affecting the situation.
BOJ Governor Kuroda stated that there is time flexibility in policy decisions. The question remains whether the significant reduction in the yield gap between Japan and the United States is enough to support the yen.
The yen has risen 12% against the dollar since the end of June, showing the highest performance among major currencies. However, factors such as capital flows and investor positioning suggest that the uptrend may be short-lived.
Even after the Bank of Japan ended its negative interest rate policy, sluggish economic growth and the arrival of aging are prompting a shift of funds from domestic to overseas. Purchases of foreign bonds are shrinking, but direct investment overseas is increasing.
According to Kazushige Kaida, Head of the State Street Bank Financial Markets Division, Japanese investors have the sense that "if you want to earn excess returns, go overseas," and while the current momentum is towards a stronger yen, fundamentally the movement is towards selling the yen.
Facing heavy challenges despite the tailwind from the yen's decline and the US interest rate cut.
The yen recorded a significant decline last week, the largest in about five months, and the downward pressure continues on the morning of the 24th. The 0.5-point interest rate cut by the US Federal Reserve is the background, but the cautious stance of Chairman Powell is also affecting the situation.
BOJ Governor Kuroda stated that there is time flexibility in policy decisions. The question remains whether the significant reduction in the yield gap between Japan and the United States is enough to support the yen.
The yen has risen 12% against the dollar since the end of June, showing the highest performance among major currencies. However, factors such as capital flows and investor positioning suggest that the uptrend may be short-lived.
Even after the Bank of Japan ended its negative interest rate policy, sluggish economic growth and the arrival of aging are prompting a shift of funds from domestic to overseas. Purchases of foreign bonds are shrinking, but direct investment overseas is increasing.
According to Kazushige Kaida, Head of the State Street Bank Financial Markets Division, Japanese investors have the sense that "if you want to earn excess returns, go overseas," and while the current momentum is towards a stronger yen, fundamentally the movement is towards selling the yen.
In a situation where the inflation rate is around 2%, it is desirable to bring the policy interest rate closer to a level that is neutral to the economy and prices.
There is a high level of uncertainty surrounding the economy and prices, with unexpected situations often arising.
It is also important to observe how the economy and prices react to rising interest rates.
Rather than setting an advance schedule for policy operation, it is necessary to proceed promptly and appropriately considering various uncertainties.
Watch the trends in the financial capital markets with extremely high vigilance.
......
Other notable remarks
Finance Minister Suzuki: "We expect the Bank of Japan to closely cooperate with the government and implement appropriate policy operations to achieve the price target."
Finance Minister Suzuki: "We expect the Bank of Japan to closely cooperate with the government and implement appropriate policy operations to achieve the price target."
"Datacenter" ranks 5th, with the resurgence of semiconductor-related stocks, gainingianbankuai reignites interest ＜Attention gainingianbankuai＞
Against the backdrop of the rapid expansion of the AI market, there is an increasing demand for AI semiconductors, including GPUs installed in AI servers. As a result, a construction rush of data centers to install AI servers is expected globally. In the stock market, there is renewed interest in related stocks, focusing on the AI sector. Recently, there has been a noticeable trend in Tokyo market following the U.S. stock market to buy back semiconductor sectors, with strong tailwinds around the datacenter theme.
Against the backdrop of the rapid expansion of the AI market, there is an increasing demand for AI semiconductors, including GPUs installed in AI servers. As a result, a construction rush of data centers to install AI servers is expected globally. In the stock market, there is renewed interest in related stocks, focusing on the AI sector. Recently, there has been a noticeable trend in Tokyo market following the U.S. stock market to buy back semiconductor sectors, with strong tailwinds around the datacenter theme.
MemeCoin for cats rises by 40% in a week as risk appetite increases due to the FRB rate cut
●Meme coins inspired by cats are once again in the spotlight, with a maximum 40% increase in a week. In particular, POPCAT and MOG have seen significant gains, with POPCAT's market capitalization approaching $1 billion.
●The recent rate cut by the Federal Reserve for the first time in 4 years has led to the price increase of risk assets, including Bitcoin, and has been one of the reasons for the sharp rise in meme coins.
●MOG has garnered enthusiastic support on social platforms and risen by 70% in 2 weeks. The community is strengthening solidarity through specific reply methods.
●The newly released CAT has recorded a trading volume of over 104.5 million dollars in 24 hours, becoming one of the largest cat memes in a short period. CAR is collaborating with the cat comic "Simon’s Cat".
●Market makers and hedge funds predict a significant growth potential in the meme coin market over the next few months due to increased liquidity from the Federal Reserve's rate cut.
●Meme coins inspired by cats are once again in the spotlight, with a maximum 40% increase in a week. In particular, POPCAT and MOG have seen significant gains, with POPCAT's market capitalization approaching $1 billion.
●The recent rate cut by the Federal Reserve for the first time in 4 years has led to the price increase of risk assets, including Bitcoin, and has been one of the reasons for the sharp rise in meme coins.
●MOG has garnered enthusiastic support on social platforms and risen by 70% in 2 weeks. The community is strengthening solidarity through specific reply methods.
●The newly released CAT has recorded a trading volume of over 104.5 million dollars in 24 hours, becoming one of the largest cat memes in a short period. CAR is collaborating with the cat comic "Simon’s Cat".
●Market makers and hedge funds predict a significant growth potential in the meme coin market over the next few months due to increased liquidity from the Federal Reserve's rate cut.
NY Crude Oil futures trading extended gains outside trading hours, following China's reduction in deposit reserve ratio, also considering establishing a stabilization fund.
NY crude oil prices rose sharply in after-hours trading, as expectations for China's economic recovery spread. Authorities announced plans to lower the reserve requirement ratio by the end of the year, as well as to lower existing mortgage rates, and allow funds and brokers to use People's Bank of China funds to buy stocks. Additionally, they revealed considerations for establishing a stock price stabilization fund. In addition to crude oil, iron ore prices are also rising.
NY crude oil prices rose sharply in after-hours trading, as expectations for China's economic recovery spread. Authorities announced plans to lower the reserve requirement ratio by the end of the year, as well as to lower existing mortgage rates, and allow funds and brokers to use People's Bank of China funds to buy stocks. Additionally, they revealed considerations for establishing a stock price stabilization fund. In addition to crude oil, iron ore prices are also rising.
Hot stocks
Mitsubishi Heavy Industries surged significantly for the third consecutive day, announcing the launch of the H2A Rocket No. 49 on the 26th.
$Mitsubishi Heavy Industries (7011.JP)$Rose significantly for the third consecutive session. There were moments when it broke through the 2000 yen mark. The company announced on the 23rd that the delayed launch of the "H2A" rocket No. 49 will take place on the 26th. In response to a Russian military patrol plane violating Japan's airspace off Rebun Island in Hokkaido on the 23rd, it is also reported that the JASDF used "flares". In an environment where investor interest tends to focus on defense-related stocks, there seems to have been a growing interest in the company's stock following the emergence of new space-related developments.
Mitsubishi Heavy Industries surged significantly for the third consecutive day, announcing the launch of the H2A Rocket No. 49 on the 26th.
$Mitsubishi Heavy Industries (7011.JP)$Rose significantly for the third consecutive session. There were moments when it broke through the 2000 yen mark. The company announced on the 23rd that the delayed launch of the "H2A" rocket No. 49 will take place on the 26th. In response to a Russian military patrol plane violating Japan's airspace off Rebun Island in Hokkaido on the 23rd, it is also reported that the JASDF used "flares". In an environment where investor interest tends to focus on defense-related stocks, there seems to have been a growing interest in the company's stock following the emergence of new space-related developments.
Hitachi---Significantly extended gains, setting new highs, together with NVIDIA on railway infrastructure inspection system development.
$Hitachi (6501.JP)$Significantly extended to update the high on July 11th. They have announced the development of a system to inspect the safety of railroad infrastructure such as rails, catenaries, and signals in collaboration with US NVIDIA. By installing dedicated equipment on railway vehicles and running them, it seems that infrastructure inspections can be conducted. Real-time monitoring is expected to lead to the efficiency of maintenance work. It is said that they will unveil new technology at the world's largest railway technology exhibition, which opens in Germany on the 24th.
$Hitachi (6501.JP)$Significantly extended to update the high on July 11th. They have announced the development of a system to inspect the safety of railroad infrastructure such as rails, catenaries, and signals in collaboration with US NVIDIA. By installing dedicated equipment on railway vehicles and running them, it seems that infrastructure inspections can be conducted. Real-time monitoring is expected to lead to the efficiency of maintenance work. It is said that they will unveil new technology at the world's largest railway technology exhibition, which opens in Germany on the 24th.
Source: MINKABU, Bloomberg, FISCO, CoinDesk Japan
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