In the morning session four days ago, three points should be paid attention to:

Focus on investment in semiconductor stocks.

Itoen's operating profit increased by 27.7% to 25 billion yen in the 4 months ending in April 24, and is expected to increase by 5.9% to 26.5 billion yen on April 25.

Key materials in the morning session: Toyota Motor, Mazda, and five other companies, their certification is fraudulent, and the Ministry of Land, Infrastructure, Transport and Tourism will conduct on-site inspections.

Focus on investment in semiconductor stocks.

The Japanese stock market on the 4th is expected to switch to a market development that is conscious of its stability after it began with sell orders. On the 3rd, the US stock market saw the Dow Jones Industrial Average fall 115 points and the NASDAQ rise 93 points. Due to unexpected poor manufacturing statistics in May, concerns about the U.S. economy slowing down increased, and the Dow remained sluggish all day. On the other hand, Nvidia was bought because Juan's CEO announced the platform "Rubin" for next-generation artificial intelligence (AI) chips at the Taipei International Computer Show (COMPUTEX), and one corner of semiconductor stocks was strong, so NASDAQ rose. Chicago's Nikkei 225 futures were 290 yen lower than Osaka, at 38,650 yen. The exchange rate is hovering around 156.10 yen per dollar.

It is likely to start selling initially because it will move in the form of bringing the supply-demand balance closer to Chicago futures. Although the Nikkei 225 futures fell to 38,430 yen in the night session, they narrowed the decline toward the end, and the 25-day average level is expected to be conscious as psychological support. Yesterday's Nikkei Average Stock Price recovered to 39,000 yen in the morning and then became stagnant, but was shaped in a form that was restrained by the upside of the 75-day line. Selling will likely be the primary trend today, but the 25-day line is susceptible to being considered a support line, and the stance towards an eye for dips is expected.

On the other hand, Nvidia was strong in the United States, while NEXT FUNDS Nikkei Semiconductor Stock Index Linked ETF (NF-Nikkei Semiconductor ETF) <200A> will be listed domestically. It is a fund that invests in companies such as Tokyo Electron <8035>, Renesas <6723>, Disco <6146>, and Advantest <6857>, and is likely to be conscious of investing in semiconductor stocks, becoming a driving force behind the Nikkei Average Stock Price.

On the other hand, the yen exchange rate has fluctuated to slightly stronger yen at around 156 yen per dollar in the foreign exchange market. As test misconduct has been confirmed in Toyota <7203>, Mazda <7261>, Honda <7267> and elsewhere, there is a possibility that the control of investment to export-related stocks may weaken and the relative development is expected to become dominant in the Nikkei average type. Therefore, it is considered that investors are more likely to turn to semiconductor stocks, and eye for dips is likely to be conscious to the stocks selected for the Nikkei Semiconductor ETF.

Itoen’s operating profit increased by 27.7% to 25 billion yen in the 4 months ending in April 24, and is expected to increase by 5.9% to 26.5 billion yen on April 25.

Itoen's operating profit increased by 27.7% to 250.23 billion yen in the 4 months ending in April 2024, and sales increased by 5.1% to 453.9 billion yen. Both leaf drink-related businesses and food and beverage-related businesses landed on increased revenue and profit, and the operating loss and profit of other businesses returned to black. In the 4 months ending in April 2025, sales revenue is planned to reach 466.6 billion yen, up 2.8% from the previous year, and operating income is planned to reach 26.5 billion yen, up 5.9% from the previous year.

Materials of concern in the morning session

Nikkei average rose (38,923.03, +435.13).

Nasdaq composite index rose (16,828.67, +93.65).

SOX index rose (5,152.51, +29.16).

Long-term US interest rates fell.

Expectations for inflation to ease in the US.

Request for improvement in corporate value by the Tokyo Stock Exchange.

Toyota Motor <7203>, Mazda, and five other companies, their certification is fraudulent, and the Ministry of Land, Infrastructure, Transport and Tourism will conduct on-site inspections.

Panasonic <6752> remotely manages store air conditioning and will provide energy-saving support apps before the end of the year.

NTT <9432> launches new brand in space business, with sales revenue expected to reach 100 billion yen scale.

Sharp <6753> will convert its liquid crystal factory to DC for artificial intelligence (AI) and is in talks with KDDI · US companies.

Japan Coke <3315> and Itochu to conduct a survey on constructing hydrogen and ammonia supply networks in Kitakyushu.

Kansai Electric <9503> is conducting a feasibility study on a hydrogen supply network in Harima and Kobe with local governments in Hyogo.

Nissan <7201> is making steady progress on autonomous driving demonstration, technology development, to be completed within the fiscal year.

Chu-Nishi Manufacturing <5941> has developed an automatic pasta server for convenience stores.

MHIET, a subsidiary of Mitsubishi Heavy Industries <7011>, has successfully tested a high-power, 6-cylinder hydrogen fuel engine.

Blue Innovation <5597> uses drones to inspect overhead transmission lines for Hokuriku Electric instead of helicopters.

Autonomous Control Systems Laboratory <6232> has been commissioned by NEDO for the research of small unmanned aerial vehicle autonomous control.

Canon Marketing Japan <8060> has launched a cyber security software for small businesses and individuals.

Hoshiden <6804> is promoting manufacturing in Vietnam to diversify from China.

Maxell <6810> has developed a new solid-state battery technology, which can operate up to 150℃.

BIPROGY <8056> has added a collision warning feature to its drive recorder, which uses AI to predict behavior in real time.

A Canon <7751> subsidiary in the US is increasing production of silk-based aqueous solutions for food preservatives.

Iwata Sangyo <8088> is expanding its semiconductor-related gas business in Singapore.

Grid <5582> is developing an AI engine for optimizing coal and hydropower supply and demand in Hokkaido with Hokkaido Electric Power.

Okabe <5959> and others have developed a new construction method for formwork construction, which reduces time and environmental impact.

Sakai Chemical Industry <4078> is expanding its electronic and cosmetic materials with a new factory in Fukushima.

Toyobo <3101> has obtained certification for the recycling performance of PET resin catalysts in the United States.

Mitsubishi Materials <5711> has signed a final contract for the acquisition of a German company.

☆ Schedule of events in the morning session

At 8:50, the May monetary base (April: +2.1% YoY).

At 10:30, Australian dollar financial estimates for Q1-Q3 (expected: +5.2 billion AUD, Q4+11.8 billion AUD).