The Nikkei average continues to rise. At the end of the morning session, it was up 32.28 yen (+0.08%) from the previous day at 41,307.36 yen (approximately 0.8 billion20 million shares traded).
The US stock market rose again on the 16th. The Dow Jones average closed at 40,954.48 dollars, up 742.76 dollars (+1.85%), the Nasdaq at 18,509.34, up 36.77 points (+0.20%), and the S&P500 at 5,667.20, up 35.98 points (+0.64%). It rose after opening with buying favoring better-than-expected retail sales. In addition to the expectation of growth and consumption, United Health's rise boosted the Dow Jones, which continued to trend strongly throughout the day. The Nasdaq was temporarily pulled down by selling associated with rotation, but recovered into positive territory toward the end. The Dow Jones continued to update its historic high for several days and closed at the 16th highest ever.
Following the continued Trump rally, the Tokyo market opened with a buying preference. The Nikkei average started at around 41,400 yen, but gradually narrowed its gains as Nvidia and semiconductor stocks fell. Topix was relatively strong due to buying of domestic demand-type stocks such as real estate, construction, and securities, and the market was dominated by small and medium-sized stocks such as the growth market. In the Nikkei average adopted stocks, Toho <9602> and Resonac <4004> became buying preference due to good performance, and defense-related stocks such as Kawasaki Heavy Industries <7012> and Mitsubishi Heavy Industries <7011> continued to be conscious of the Trump rally. Also, Komatsu <6301> was bought and updated its all-time high thanks to the rise of Caterpillar, and Hitachi Construction Machinery <6305> also rose. In addition, Nomura<8604>, IHI <7004>, Sumitomo Heavy Industries <6302>, and JGC Holdings Corporation unsponsored ADR <1963> were bought.
On the other hand, some semiconductor-related stocks such as Laser Tech <6920>, Tokyo Electron <8035>, Disco <6146>, Screen HD <7735>, and Advantest <6857> were weak. Also, Apple-related stocks such as TDK <6762> and Murata Manufacturing <6981> were mediocre. OMRON <6645>, Ebara Corporation <6361>, and T&D Holdings <8795> were sold.
In terms of industry sectors, textiles & apparels, real estate, precision instruments, construction, and machinery rose, while only the three sectors of other products, electric appliances, and insurance fell.
The top contributor to the increase was Shinnetsu Chemical <4063>, which pushed up the Nikkei average by about 13 yen with one stock. Terumo <4543> was in second place, followed by Komatsu<6301>, Olympus <7733>, First Retail <9983>, Hitachi Construction <6305>, and Hoya <7741>, among others.
The exchange rate is hovering around 158.40 yen per dollar and there is no significant movement observed. Due to the daily intervention of buying yen and selling dollars by the government and the Bank of Japan, active selling of the yen is being held back. In the afternoon Tokyo market, it seems likely that the Nikkei Average will enter negative territory compared to the previous day, but defense-related and infrastructure-related stocks will support the market, avoiding a further decline. The Nikkei Average is expected to be in a stalemate at the 41,300 yen level.