The Nikkei Average rebounded. The front-end transaction was closed at 39727.91 yen (estimated turnover 800 million shares), which was 386.37 yen higher (+ 0.98%) compared to the previous day.
The US stock market continued to rise slightly on the 27th. The Dow average closed at 39164.06, which was 36.26 dollars higher (+ 0.09%), the Nasdaq index rose 53.53 points (+ 0.30%) at 17858.68, and the S&P 500 closed at 5482.87, which was 4.97 points higher (+ 0.09%). Cuddling is a decline. Unusual corporate financial results, such as Micron and the Walgreens Boots Alliance, have cooled investor sentiment. The wait-and-see attitude continues ahead of the announcement of the May PCE price index, which the US Federal Reserve (Fed) places importance on, but skeptical views on the sustainability of the AI boom have arisen due to the unsatisfactory outlook for Micron, and semiconductor brands such as NVIDIA were sold. Meanwhile, purchases continued on major high-tech stocks such as Amazon.com and Apple, whose total market value reached 2 trillion dollars the day before, and supported the market price.
In response to the rise in US stocks, the Tokyo market began trading with a buying advantage centered on high-tech stocks. When the Nikkei Average started in the 39500 yen range, it slowly rose, and there was also a scene where the increase widened to 39783.70 yen, which is almost the same as the return high price set on the 26th. Since financial stocks with large market capitalization, such as megabanks, continued to be bought, TOPIX updated the year-to-date high of 2813.22 points on March 22.
Among stocks adopted by the Nikkei Average, one of the semiconductor-related brands such as Lasertec ＜6920＞, Advantest ＜6857＞, and SoftBank Group ＜9984＞ was bought, and financial stocks such as MS&AD ＜8725＞, Mitsubishi UFJ ＜8306＞, T&D Holdings ＜8795＞, Tokio Marine ＜8766＞, Sumitomo Mitsui ＜8316＞, and Mizuho ＜8411＞ were also conspicuous. Additionally, Sumitomo Pharma ＜4506＞ and Ebara Seisakusho ＜6361＞ were purchased.
Meanwhile, reports by securities companies were viewed negatively and Hino Motors ＜7205＞ was sold, and the decline in stocks implementing recent structural reforms such as Shiseido ＜4911＞, Kao ＜4452＞, Nidec ＜6594＞, and Omron ＜6645＞ was slightly conspicuous. Additionally, Sharp ＜6753＞, NEC ＜6701＞, and Olympus ＜7733＞ were sold.
By industry, insurance, banking, securities/commodity futures trading, shipping, wholesale businesses, etc. rose, while the electric/gas industry, air transportation industry, pulp/paper industry, foodstuffs, retail business, etc. also declined.
As for the exchange rate, the depreciation of the yen and appreciation of the dollar progressed to the level of 161 yen and 20 yen per dollar after 10:00. It is observed that demand for dollar purchases intensified at the timing of the 10:00, but there are also voices saying that dollars were bought because the view that “Trump is dominant” strengthened at the 1st TV debate for the presidential election being held in the United States. Also, it seems that Kanda Treasurer, who was spearheading the exchange intervention, was replaced, and it was reported that Director Mimura of the International Bureau would be appointed as his successor, which strengthened the depreciation trend of the yen.
Since the exchange market is moving due to the depreciation of the yen and the appreciation of the dollar, in the aftermath, the sense of caution against implementing yen buy-dollar sales intervention by the government and the Bank of Japan will increase, and the rise in Japanese stocks will come to a standstill. The Nikkei Average and TOPIX are likely to develop nervously with an eye on exchange rate trends.