In the morning of the 24th trading, the following three points should be noted.
High-tech stocks aim for pullbacks.
Tsuruha Holdings, 24/5 operating profit increased by 8.0% to 49.2 billion yen, and the 25/5 estimate increased by 8.7% to 53.5 billion yen.
Focus on the following points in the morning's attention: Inoseki Agricultural Machinery expands orders in Europe and expands biofuel mowers.
High-tech stocks aim for pullbacks.
The Japanese stock market on the 24th seems to be in a stalemate. On the 21st, the US market was up by 15 dollars for the NY Dow and down 32 points for the NASDAQ. While the sell-offs of position adjustments occurring from the triple witching expiration of the US equity-related options and the purchase of laggard stocks supported buying, the NASDAQ was weighed down by the sale of semiconductors Envidia and Micron Technology on the previous day. The Chicago Nikkei average futures, in Osaka comparison, were down by 125 yen to 38,475 yen during the day. The yen exchange rate is hovering around 159.70 yen per dollar.
Due to the posture of bringing the position closer to the Chicago futures, there is a slight expectation of selling pressure. The Nikkei 225 futures were sold down to 38,350 yen in the night session, then bought back up to 38,600 yen before being dominated by selling near the end and closing at 38,490 yen. With Nvidia's decline impacting indices significantly, it is expected that target profit selling will be easier for heavily impacted stocks such as Toshiba Electronics <8035> and Advantest <6857>, potentially weighing on the Nikkei average stock price.
The Nikkei 225 futures continue to move within a narrow range between the -1σ of the Bollinger Bands and the 25-day moving average, suggesting that there will not be a great trend. However, it is believed that the U.S. high-tech stock prices were largely affected by the supply and demand during the triple witching event, and the possibility of being pushed towards a rebound by events is making it a stance towards focusing on dips. Also, while the dollar/yen pair approached the 1-dollar = 160-yen range again in the foreign exchange market, it is difficult to invest in export-related companies as the possibility of BOJ intervention speculation increases. In addition, Arm Holdings will be included in the NASDAQ 100 index from the 24th, making it easier for speculative funds to move towards Softbank G <9984>. Even if it starts with sell orders, it is expected that there will be strong buying interest waiting for dips for high-tech stocks, potentially supporting the Nikkei average. In the U.S., the current economic indicators, in addition to the sturdiness of the U.S. economy and the slowdown in inflation, the expectation of a rate cut by the Federal Reserve Board (FRB) is increasing. Although the stalemate feeling is getting stronger, it is expected to make it difficult to initiate selling.
Also, since Arm Holdings will be included in the NASDAQ 100 index from the 24th, it is likely that speculative funds will move towards Softbank G <9984>. Even if it starts with sell orders, it is expected that there will be a strong buying interest waiting for dips for high-tech stocks, which could potentially support the Nikkei average. In addition, the results of economic indicators in the U.S., as well as the sturdiness of the U.S. economy and the slowdown in inflation, are increasing the expectation of a rate cut by the Federal Reserve Board (FRB). Although the stalemate feeling is getting stronger, it is expected to make it difficult to initiate selling.
Tsuruha Holdings, 24/5 operating profit increased by 8.0% to 49.2 billion yen, and the 25/5 estimate increased by 8.7% to 53.5 billion yen.
Tsuruha HD <3391> announced results for the May 2024 fiscal year, with sales of 1,274.62 billion yen, up 5.9% from the previous year, and operating profit of 49.2 billion yen, up 8% from the previous year. In the drugstore industry, sales have been growing mainly in cosmetics and food products, thanks to the return of people and the recovery of inbound demand and price increases due to the stabilization of corona. The sales plan for the fiscal year 2025 is sales of 1,800 billion yen, up 5.1% from the previous year, and operating profit of 53.5 billion yen, up 8.7% from the previous year.
Materials of concern in the morning session
NY Dow rose (39,150.33, +15.57)
1 dollar = 159.70-80 yen
VIX index decreased (13.20, -0.08)
Expectations for inflation to ease in the US.
Request for improvement in corporate value by the Tokyo Stock Exchange.
- Inoseki Agricultural Machinery <6310>: Expanding orders in Europe and expanding biofuel mower.
- Hitachi <6501>: Two-person robe robot, imitation learning, long arms.
- Panasonic HD <6752>: Increase production of aluminum capacitors, plan to double it in about 28 years with Panasonic Industry.
- Nissan automaker <7201>: Closing China's Changzhou plant, rationalizing capacity due to sluggish sales.
- SoftBank Group <9984>: Aiming for a new market of "artificial super intelligence".
- Hitachi <6501>: Expansion of AI creation services, a new growth engine.
- Nishimatsu Construction <1820>: Received an order for a Singapore subway tunnel construction worth 28.1 billion yen with Okumura Corporation.
- Shiseido <4911>: Transfers all of its holdings of Faintoday to a European fund.
- Toyo Seikan GHD <5901>: Toyo Seikan and TOPPAN establish new companies in Sweden for automotive battery packaging materials.
- Mitsubishi Motors <7211>: President Takao Kato"Fighting back against Chinese EVs".
- Toa Dkkk <6848>: New factory in Saitama, Sayama, to shorten production time for analytical measurements.
- Meiden <6508>: Demonstrates seawater desalination using ceramic flat membranes in Singapore.
- Mitsubishi Heavy Industries <7011>: Hand over surveillance ship"Aga" to Ministry of Defense.
- Henri president of Anritsu (6754) plans a rebound in generic measuring instruments.
- Hitachi Construction Machinery (6305) will relay transport in Kanto and Kansai to reduce the burden on drivers.
- NEC (6701) has released a management decision support tool to adjust supply and demand based on financial amounts.
- Ricoh (7752) has a DLP projector with a laser light source and exchangeable lenses.
- Sato Shoji (8065) collaborates with Furukawa Electric to expand sales of robots for printed circuit boards.
- Obayashi Construction (1801) introduces new concepts for resort development, focusing on eco-friendly concepts, and other three themes.
- The bankruptcy of a subsidiary producing car springs led to a decline in performance for Mitsubishi Steel (5632).
- Taiheiyo Cement (5233) expands its large silo in the United States to store mixtures of materials.
- KH Neochem (4189) will raise the price of butyl acetate next month.
☆ Schedule of events in the morning session
- 8:50 Main opinions at the Bank of Japan's monetary policy meeting (June 13-14).
- 7:45 NZ May trade balance (April: + 9.1 million NZ dollars)