I would like to pay attention to the following 3 points in late-day trading on the 20th.

・The Nikkei Average rebounded drastically, rising to the 39,000 yen level for the first time in about a month due to unexpectedly high prices led by futures

・The development of the dollar and yen is firmly aiming for 156 yen

・The top contributor to price increases is Fast Rette (9983), and Shin-Etsu (4063) is in second place

■The Nikkei Average rebounded drastically, rising to the 39,000 yen level for the first time in about a month due to unexpectedly high prices led by futures

The Nikkei Average rebounded sharply. The front-end transaction was closed at 39346.92 yen (estimated turnover of 900 million shares), 559.54 yen higher (+1.44%) compared to the previous business day.

US stocks were mixed on the 17th. The NY Dow reached 40,000 dollars for the first time on a closing price basis with a closing price increase of 134.21 dollars (+ 0.34%) of 40003.59 dollars. The Nasdaq was 12.35 points lower (-0.07%) at 16685.96 dollars, and the S&P 500 was 6.17 points higher (+0.12%) at 5303.27. Soft landing rose after being close to expected purchases. While the pace is slow, there is a strong view that the next action of the US Federal Reserve (Fed) is to cut interest rates, and furthermore, the fact that China announced large-scale financial measures to support the real estate market supported the housing sector, and the Dow remained solid throughout the day and expanded the range of increases at the end of the day, reaching an all-time high of 40,000 dollars. Meanwhile, the NASDAQ ended in mixed conditions due to the rise in long-term interest rates due to heavy increases in long-term interest rates.

Since US stocks had mixed highs and lows, the Tokyo market began trading due to a lack of direction. The Nikkei average at the time of donation started slightly negative compared to last weekend, but after turning back all at once, the increase gradually widened. While no notable trading materials were observed, while voices were heard that consolidated purchases were made into futures, the Nikkei Average moved to the 39,000 yen range since 4/15. It's also the first day of the week, and sales haven't increased that much, with trading prices on the Prime Market being around 2 trillion yen, but it's in an overall high position where almost 80% has risen.

Among stocks adopted by the Nikkei Average, Shin-Etsu (4063), which announced share buybacks with an upper limit of 100 billion yen, became the buying advantage, and resource-related markets such as Sumitomo Mining (5713), Mitsubishi Materials (5711), and Mitsui Gold (5706) were bought as materials for rising resource prices. Also, Socionext ＜6526＞ and Japan Steel Works ＜5631＞ rose due to reports on some domestic securities.

Meanwhile, in addition to shipping stocks such as Kawasaki Kisen ＜9107＞ and NYK Line ＜9101＞, some domestic securities reports of Mitsubishi Heavy Industries (7011) were viewed negatively and sold. In addition, Eisai ＜4523＞, Nomura ＜8604＞, ZOZO ＜3092＞, and SoftBank Group ＜9984＞ experienced a soft trend.

By industry, while petroleum and coal products, non-ferrous metals, mining, steel, chemicals, etc. rose, only 2 sectors declined, shipping and other products.

Japan's long-term interest rate has risen to 0.975% to the level it has been since 2013/5. In the US market last weekend, US 10-year bond yields rose to the 4.4% range in response to hawkish remarks made by Fed Director Bowman. It is an observation that the trend of selling US bonds has spread to Japan as well. There is no such noticeable movement in the lunchtime exchange rate of 155 yen 80 yen per dollar, but if Japan's long-term interest rates rise sharply in the afternoon, the exchange rate swings higher in the yen due to speculation that the Japan-US interest rate difference will stop widening, which may be a factor that suppresses the upper price of Japanese stocks. The backstage is likely to be a development that looks at Japan's long-term interest rates and exchange rate trends.

■The development of the dollar and yen firmly aiming for 156 yen

There was a steady price movement of the dollar and yen in the Tokyo market on the morning of the 20th, and the upper price increased from 155 yen 57 yen to 155 yen 93 yen. The yield on 10-year US bonds has remained steady, and it is easy to get carried away with L dollar purchases. Also, due to the sharp rise in the Nikkei Stock Average, sales were swayed in yen, and the dollar was aimed at 156 yen.

The transaction range up to this point is 155 yen 57 yen to 155 yen 93 sen for the dollar and yen, 169 yen 15 yen to 169 yen 58 sen for the euro and yen, and 1.0869 to 1.0876 dollars for the euro dollar.

■Backstage check stocks

・10 stocks, such as Sumiseki Holdings ＜1514＞ and Aso Fromcleat ＜1730＞, etc., are stop-high

*Includes temporary stop height (sign value)

・The top contributor to price increases is Fast Rette (9983), and Shin-Etsu (4063) is in second place

■Economic indicators and statements from key figures

[Economic indicators]

・US-April Leading Economic Index: -0.6% compared to previous month (forecast: -0.3%, March: -0.3%)

・Eurozone April Consumer Price Index Revised Value: +2.4% YoY (Forecast: +2.4%, Preliminary Value: +2.4%)

・Eurozone April Consumer Price Core Index Revised Value: +2.7% YoY (Forecast: +2.7%, Preliminary Value: +2.7%)

[Remarks by VIPs]

・Bowman Federal Reserve Director

“Inflation will remain high for the time being”

“I'm concerned about the tightening of bank capital regulations, etc.”

“Progress in labor market equilibrium is slowing down”

“The policy is economy-suppressing, and we will monitor whether it is sufficient”

“If inflation is prolonged or rekindled, support interest rate hikes”

＜Domestic＞

・Nothing in particular

＜Overseas＞

・Nothing in particular