The Nikkei average rebounded slightly, closing morning trading at 40,999.80 yen (+0.21%) up 87.43 yen from the previous business day (approximate trading volume of 800 million10 million shares). Product structure, 10-30 billion yen product operating income was 401/1288/60 million yen, respectively.

The US stock market rose on the 5th. The Dow Jones Industrial Average rose 67.87 dollars (+0.17%) to 39,375.87 dollars, the Nasdaq rose 164.46 points (+0.90%) to 18,352.76, and the S&P 500 rose 30.17 points (+0.54%) to 5,567.19. After the opening bell, the market was mixed as the June employment statistics showed weak economic data. High-tech stocks rose on expectations of a rate cut in September, thanks to the low interest rates, with the Dow initially struggling due to economic slowdown concerns but then rising on the back of high-tech stocks, while the Nasdaq updated its all-time high for consecutive days and closed higher.

Although US stocks rose, a slight dominant selling trend was observed in the Tokyo market due to adjustments to the immediate rise. While the Nikkei average was trading slightly negative compared to the end of last week, selling pressure did not increase significantly and a reversal is expected. The Nikkei average hit the 41000 yen mark, while the TOPIX was mixed, falling compared to the end of last week. Aggressive buying and selling has been withheld, and trading volume in the prime market remained at the level of 1.7 trillion yen. In the Nikkei average adoption stocks, Softbank Group <9984> has led the Nikkei average for 9 consecutive sessions, while Mitsubishi Heavy Industries <7011> is continuing to attract attention as one of the defense-related stocks, rising for 11 consecutive sessions. In addition, SMC <6273>, Daiichi Sankyo <4568>, Keyence <6861>, Taiyo Yuden <6976>, HOYA <7741>, and Olympus <7733> were also bought. On the other hand, shipping stocks such as Yasukawa Electric <6506>, Kawasaki Kisen <9107>, Nippon Yusen <9101>, and Mitsui OSK Lines <9104> were weak due to the announcement of operating profit for the March-May period last week, which was down 32% year-on-year and below market expectations. In addition, Mitsukoshi Isetan <3099> fell for the first time in 10 days. By industry, precision instruments, pharmaceuticals, mining, machinery, and information and communication sectors rose, while marine transportation, electric and gas sectors, insurance, iron and steel, and rubber products fell.

In Nikkei average adoption stocks, Softbank Group <9984> is leading the Nikkei average for its 9th consecutive session, while Mitsubishi Heavy Industries <7011> is attracting attention as one of the defense-related stocks, rising for 11 consecutive sessions. In addition, SMC <6273>, Daiichi Sankyo <4568>, Keyence <6861>, Taiyo Yuden <6976>, HOYA <7741>, and Olympus <7733> were also bought.

On the other hand, Yasukawa Electric <6506> was weak due to the release of operating profit for the March-May period last week, which was down 32% YoY and below market expectations. Shipping stocks such as Kawasaki Kisen <9107>, Nippon Yusen <9101>, and Mitsui OSK Lines <9104> were also weak. In addition, Mitsukoshi Isetan <3099> fell for the first time in 10 days.

By industry, precision instruments, pharmaceuticals, mining, machinery, and information and communication sectors rose, while marine transportation, electric and gas sectors, insurance, iron and steel, and rubber products fell.

The exchange rate is hovering around 160.30 yen per dollar, and the yen is slowly rising against the dollar from the morning. The dollar index is at the 104.5 level, and although there is some selling pressure on the dollar, the impact on the stock market is currently limited. The runoff vote in the French National Assembly that drew attention did not meet prior expectations, with the left-wing opposition winning the first place, President Macron's centrist coalition winning the second place, and the far-right party's National Rally underperforming in third place. There was no notable reaction in the morning Tokyo market, but the movement in the European market tonight needs to be watched carefully. In the afternoon Tokyo market, there is a possibility that the Nikkei average will update its high during trading hours, but buying is unlikely to continue and the market is expected to move little with thin trading.