Tokyo Market Summary: Nikkei average rose 1336 yen, recovering to the 0.03 million 8000 yen range. Bottom entry signs are popping up on the candlestick chart.

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The Nikkei average has recovered to the 18000 yen level with signs of a bottoming out appearing on the candlestick chart.
The Nikkei average rose for the 5th consecutive day. In addition to the rise in the US stock market the previous day, the yen exchange rate briefly fell to the 149 yen level against the dollar, providing a tailwind. From the drop of the market from the highest level in July to the recent low on August 5th, it has reached a "half-rebound", strengthening the sense of market bottoming out. On the stock price chart, the "gap" that opened during the sharp drop is also starting to fill in. $Tokyo Electron (8035.JP)$or $Advantest (6857.JP)$Semiconductor-related stocks, such as those in the values section, temporarily rose by 6-7% and led the index, supported also by the weaker yen. $Toyota Motor (7203.JP)$or $Honda Motor (7267.JP)$Buying of export-related stocks, such as etc, was also noticeable.
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Signs of a revival in carry trade, as hedge funds move to resume it.
The popular carry trade centered on the yen, which suffered a large-scale pullback two weeks ago, appears to be gradually reviving. Antony Foster, head of G10 spot trading at Nomura International, pointed out that there is a "noteworthy return to carry trade" after the announcement of higher-than-expected US retail revenue. Next week, on the 23rd, Bank of Japan Governor Kuroda is scheduled to attend the Lower House Financial Affairs Committee's closing examination, and the direction of the carry trade is likely to become clearer over the next week. Also on the same day, Federal Reserve Chairman Powell will give a speech at the Jackson Hole Meeting (an annual symposium hosted by the Federal Reserve Bank of Kansas City). If there are any remarks to counter some speculation of a 0.5 point rate cut in September, it could become a factor supporting the carry trade.

Additional core industries for national security review, including semiconductor manufacturing-related equipment - Ministry of Finance
On the 16th, the Ministry of Finance announced the addition of semiconductor manufacturing-related equipment and advanced electronic component manufacturing to the list of core industries for investment screening under the Foreign Exchange and Foreign Trade Law, from the perspective of national security such as preserving the supply chain and addressing risks of technology outflow and military use. Core industries are those industries for which prior notification is required for direct investment by foreign investors in the country, and which, as a principle, should not be exempted from the prior notification for stock acquisitions and similar activities because of the significant risk of undermining the country's security.

Hot stocks
Mitsui Sumitomo FG's stock price recovers to the 0.01 million yen level due to the rise in long-term interest rates in Japan and the United States
Bank stocks are generally on the rise $Sumitomo Mitsui Financial Group (8316.JP)$It rose temporarily to 0.01 million135 yen, up 4.49% at one point, and recovered to the 0.01 million yen level for the first time in half a month since August 2. In the U.S. market on the 15th, concerns about the slowdown in the U.S. economy eased and long-term interest rates rose. In the domestic bond market on the 16th, there were scenes where the yield on the new 10-year government bond, which serves as a benchmark, reached 0.880%, up 0.050% from the previous day. Purchases are spreading due to expectations of improvement in spreads accompanying the rise in long-term interest rates. $Mitsubishi UFJ Financial Group (8306.JP)$or $Mizuho Financial Group (8411.JP)$High, too high.

Sony Group Corporation rebounded, with leading domestic securities firms maintaining their investment rating of 'A'.
$Sony Group (6758.JP)$Koss Corp rebounded. Iwai Cosmo Securities continued its investment rating of 'A' and its target stock price of 15,500 yen for the company's stock on the 15th. Consolidated operating profit for the first quarter (April to June) increased by 10.3% compared to the same period last year to 279.16 billion yen. The entertainment field and image sensors are progressing well, driven by the tailwind of a weak yen. At the same time as the earnings announcement, the company revised upward its profit for the fiscal year ending in March 2025 from 1.275 trillion yen to 1.31 trillion yen (an 8.4% increase from the previous year). The game & network services (G&NS), music, movies, and other areas are performing well.