In the morning trading three days ago, we should pay attention to the following three points.

-Although there is a stalemate feeling, there is a market development that expects a rise in prices.

Kasumigaseki Capital, Q3 operating profit increased by 249.2% to 3.643 billion yen.

-Maxell is developing an all-solid-state battery and investing up to 10 billion yen in new businesses and M&A.

-Although there is a stalemate feeling, there is a market development that expects a rise in prices.

On the Japanese stock market on the 3rd, it seems that after starting with buying ahead, the stalemate feeling is likely to increase gradually, but the market development that expects a rise in prices is likely to occur. In the US market on the 2nd, the NY Dow was up 162 points and the Nasdaq was up 149 points. As we approach the announcement of the US employment statistics for June over the weekend and the watchful stance spreads, selling to take profits exceeded stocks that had risen in the meantime. After that, Fed Chairman Powell pointed out that inflation is again trending toward slowing down, causing long-term interest rates to fall and major high-tech stocks such as Amazon and Apple to be bought, supporting the market. The Chicago Nikkei 225 futures are up 150 yen from Osaka during the day to 40,260 yen. The yen is trading around 161.40 yen per dollar.

Although it looks like Chika's futures will converge, the buying is likely to precede it. The Nikkei 225 futures were sold down to 39,850 yen in night session, but then showed strong rebound tendencies, and there were scenes where it was bought up to 40,280 yen. It was expected to continue the struggle around 40,000 yen, but the trend that supports it as a trend that supports 40,000 yen is likely to be conscious, and the buying appetite for waiting for dips is considered to be strong.

In the US, trading is shortened on the 3rd, and the 4th is Independence Day and will be closed. Many participants are already expected to have taken vacations, so the flow of overseas players is likely to be limited. Therefore, after one round of buying, there is a possibility that the stalemate feeling will gradually increase. On the other hand, the index was intermittently involved in fund inflows in the latter half of yesterday. Although there are limited moves for active upward movement, if an index buy enters mechanically in the limited number of participants, a bias towards higher prices is likely to increase.

In the US, large tech stocks such as Amazon.com, Apple, and Meta Platforms were bought. Nvidia fell, but Arm Holdings was bought by nearly 3%, making it easier to support SoftBank Group <9984>. In addition, Uniqlo's domestic same-store sales in June, which was announced by Fast Retailing <9983> yesterday evening, increased 14.9% compared to the same month last year. If this is considered material, stocks with a large impact on the index are likely to lead the Nikkei Average.

The Nikkei average stock price has broken through +2σ (39830 yen) of the Bollinger Band with yesterday's rise and is approaching +3σ (40310 yen). Although profit-taking selling is likely to enter near +3σ, which is cautious about overheating, it should be directed towards a stance of waiting for dips.

Kasumigaseki Capital, Q3 operating profit increased by 249.2% to 3.643 billion yen.

Kasumigaseki Capital <3498> announced that its third quarter results for the fiscal year ending August 2024 showed sales of 33.595 billion yen, an increase of 82.0% from the same period of the previous year, and operating profit of 3.643 billion yen, an increase of 249.2% from the same period of the previous year. By incorporating the demand for rebuilding refrigerated warehouses using environmentally friendly natural refrigerants, consciousness of global warming is rising. For the fiscal year ending August 2024, the sales plan is 600 billion yen, up 60.9% from the previous year, and the operating profit plan is 8.5 billion yen, up 91.3% from the previous year.

Materials of concern in the morning session

The Nikkei average rose (40074.69, +443.63)

The NY Dow rose (39331.85, +162.33)

The Nasdaq composite index rose (18028.76, +149.46)

Chicago Nikkei futures rose (40260, +150 compared to Osaka)

The SOX index rose (5544.99, +67.85)

The VIX index fell (12.03, -0.19)

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.

-Maxell is developing an all-solid-state battery and investing up to 10 billion yen in new businesses and M&A.

-Sumitomo Chemical <4005> expands agrochemical business, low environmental loads, and business opportunities in Europe and the US.

-Panasonic HD <6752> developing its own AI platform for generating the largest data in Japan.

-Itochu <7972> invests in RF Lucas and develops an office furniture usage information management system.

- Nidec <6594> invests in Embraer to deepen its eVTOL market

- Honda <7267> sells its shares of 500 billion yen to four major insurance companies

- Aeon <8267> lowers prices for 32 private brand items in all 10,000 stores nationwide

- Suzuki <7269> launches biogas equipment at an Indian plant, reducing CO2 emissions by 190 tons per year

- Shimadzu Corporation <7701> strengthens its medical technology through personnel exchange in collaboration with Tokushima University

- Hitachi Zosen <7004> acquires a Danish firm and expands the after-sales service for a garbage power generation facility

- Mitsubishi Electric <6503> accepts Chinese technical personnel for elevator installation through Mitsubishi Building Solutions

- Hitachi <6501> establishes collaborative bases at Haneda and Kyoto, strengthens manufacturing and logistics SI

- Toppan Printing <7911> conducts a demonstration of a translation display with JAL for face-to-face conversations at the airport

- Japan Gypsum <5333> invests in Taiwan Panel Semi and accelerates development of thin flat batteries, etc.

- Intage Holdings <4326> demonstrates generation of product advertisement by AI in-store signage with Docomo, and others in a Kumamoto supermarket

- NEC <6701> supplies its infrastructure to a major Taiwanese bank through its Swiss subsidiary and supports services for wealthy clients

- JFE Holdings <5411> strengthens its business structure through a local company acquisition and bulk trading of building materials

- Taisei Corporation <1801> demonstrates a digital twin for urban development through the interconnectivity of reality and virtuality at Iwami Ginzan

- Mitsubishi Materials <5711> starts producing copper concentrates in Chile

- JGC Holdings <1963> proposes a catalyst to NCK CAT and supports continuous pharmaceutical production equipment

- Nippon Steel Corporation <5355> President Yuji Nishimura achieves the midterm goal and expands the industrial furnace

- Nippon Sheet Glass <5202> and J-POWER/new Nippon Electric Fiber develop high-functional fibers from coal ash

☆ Schedule of events in the morning session

Not applicable.

- 10:30 Australian retail sales for May (+0.3% forecast month-on-month, April: +0.1%)

- 10:45 Chinese Caixin Services PMI for June (estimate: 53.4, May: 54.0)