In the afternoon trading on the 11th, the following three points should be noted.
The Nikkei average rose for three consecutive days, reaching 42,400 yen at one point due to the high-tech stocks.
The dollar/yen is firm, continuing the rise in Japanese stocks.
The top contributors to the rise were First Retail and East Electric.
The Nikkei average rose for three consecutive days, reaching 42,400 yen at one point due to the high-tech stocks.
On the third day, the Nikkei Average rose for three consecutive days and closed at 42,179.84 yen (approximately 0.9 billion 10 million shares traded), up 347.85 yen (0.83%) from the previous day's close. By product structure, the operating income of 10-30 billion yuan products was respectively 401/1288/60 million yuan.
The US stock market rose on the 10th. The Dow Jones Industrial Average closed at 39,721.36, up 429.39 points (+1.09%), while the NASDAQ closed at 18,647.45, up 218.16 points (+1.18%), and the S&P 500 closed at 5,633.91, up 56.93 points (+1.02%). Expectations of interest rate cuts following testimony to the Senate by Federal Reserve Board (FRB) Chairman Powell boosted the market after the opening bell. Although the chairman did not clarify the timing of a rate cut in his testimony to the House, he suggested that conditions for a rate cut are in place, so the market remained firm throughout the day and expanded its gains toward the end of the session. The NASDAQ was also supported by the rise in Apple and Nvidia, setting a new record high for the seventh consecutive day.
The Tokyo market opened with a buying bias on the news of higher US stocks. The Nikkei Average reached the 42,000 yen mark for the first time in history, as there were also rumors of buybacks in the futures market. In addition to the rise in the NASDAQ, semiconductor and high-tech stocks were bought, as well as TOPIX core 30 stocks, which generally rose, causing the Nikkei Average to expand its gains to 42,426.77 yen at one point. Like the TOPIX, it reached an all-time high during trading hours for several consecutive days.
In the Nikkei Average inclusion stocks, some semiconductor-related stocks, such as SUMCO <3436>, Socionext <6526>, Renesas Electronics <6723>, and Laser Tech <6920>, rose. Additionally, Sony Group <6758> hit a new high for the year. Other Apple-related stocks, such as Murata Manufacturing <6981>, Nippon Electric Glass <6988>, and Alps Alpine <6770>, were also bought. On the other hand, Fujikura <5803> and Mitsubishi Heavy Industry <7011> continued to decline, and Yasukawa Electric <6506> was dominated by selling due to negative views in some domestic securities firm reports. In addition, Tokyo Marine <8766>, Concordia <7186>, and Advantest <6857> declined. Saizeriya <7581>, which abolished its preferential treatment system, saw a sharp decline in non-Nikkei average inclusion stocks.
In terms of industry sectors, pulp and paper, metal products, pharmaceuticals, land transportation, and mining all rose, while only four sectors—insurance, securities and commodity futures trading, services, and marine transportation—fell.
The exchange rate is fluctuating around 161.60 yen per dollar, with no significant changes observed compared to the previous day. As the announcement of the June US consumer price index is scheduled for tonight's overseas trading, the foreign exchange market is quiet, unlike the stock market. It is expected that the afternoon Tokyo market will continue to show strong movements until the closing bell due to continued foreign buying. However, with the current deviation rate of +6% from the 25-day moving average, short-term overheating in response to the day's rise may also become a concern.
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The dollar/yen is firm, continuing the rise in Japanese stocks.
During the morning trading on the Tokyo market on the 11th, the dollar/yen remained firm, rising slightly from 161.47 yen to 161.66 yen. The Nikkei average stock price is hitting new highs every day, and risk-seeking yen selling is pushing up major currencies. On the other hand, the dollar is in a difficult market situation due to the recovery of the yield on 10-year U.S. bonds.
The trading range so far is 161.47 yen to 161.66 yen for the dollar/yen, 174.90 yen to 175.20 yen for the euro/yen, and 1.0828 dollars to 1.0840 dollars for the euro/dollar.
Check stocks for the afternoon session
5 stocks, including ENECHANGE <4169> and Tsubota Lab <4890>, hit the daily limit high.
*Includes temporary stopper (indicated price)
The top contributors to the rise were First Retail and East Electric.
Economic indicators and remarks by important people
[Economic indicators]
Japanese machinery orders in May (excluding ships and electrical utilities) were -3.2% compared to the previous month (expected: +0.8%, April: -2.9%).
[Important Person's Remarks]
Cook, a member of the Federal Reserve Board of Governors (FRB).
"Economic indicators indicate a soft landing."
"We do not expect a significant rise in unemployment rates. We will respond if the situation changes."
Not applicable.
15:00 UK May mining and industrial production (MoM expected: +0.3%, April: -0.9%).
15:00 UK May trade balance (expected: -16.6 billion pounds, April: -19.607 billion pounds).
15:00 German June consumer price index revised figure (YoY expected: +2.2%, preliminary value: +2.2%).