I would like to pay attention to the following 3 points in the late-day transaction on the 26th.

・The Nikkei Average rebounded for the first time in 8 days and recovered to the 38,000 yen level from a break in yen appreciation

・The dollar and yen are falling, and there is little sense of direction

・The top contributor to price increases is Fast Rite (9983), and Shin-Etsu Chemical (4063) is in second place

■The Nikkei Average rebounded for the first time in 8 days and recovered to the 38,000 yen level from a break in yen appreciation

The Nikkei Average rebounded for the first time in 8 days. The front market transaction was closed at 38057.61 yen (estimated turnover 0.9 billion 20 million shares), which is 188.10 yen higher (+ 0.50%) compared to the previous day.

The US stock market on the 25th was mixed. The Dow average closed at 3935.07 dollars (+ 0.20%), the Nasdaq was 160.68 points lower (-0.93%) at 17181.73, and the S&P 500 was 27.91 points lower (-0.51%) at 5399.22. There is a strong sense of risk alarm, and after getting close, they are mixed. However, since gross domestic product (GDP) and consumption for the April-6 fiscal year grew above expectations, pessimistic views on the economy receded, buybacks took precedence, and the market price recovered to the positive zone. However, handover sales, which were about to announce important inflation indicators, suppressed the upper price, and furthermore, high technology was weak, stalled towards the end of the game, and the NASDAQ began to decline, and ended in various ways.

Although the Dow rose, since US high-tech stocks continued to be weak, the Tokyo market began trading with a sales advantage. There was also a scene where the decline in the Nikkei Average widened to 37668.93 yen, but after one round of sales, it switched back and recovered to the 38,000 yen level. The fact that the exchange rate swings to 153 yen 80 yen per dollar, about 2 yen depreciation from 17:00 the day before, and the fact that US futures outside of hours are moving in the positive zone seemed reassuring.

Among the stocks adopted by the Nikkei Average, Hino Motors ＜7205＞, Fujitsu ＜6702＞, Canon ＜7751＞, and Tokuyama ＜4043＞ became the buying advantage, and defense-related stocks such as IHI ＜7013＞ and Mitsubishi Heavy Industries ＜7011＞ also rose. In addition, Chugai Pharmaceutical ＜4519＞, SUMCO ＜3436＞, Hitachi ＜6501＞, Teijin ＜3401＞, and FANUC ＜6954＞ were purchased.

Meanwhile, in response to the decline in the NASDAQ, one part of semiconductor stocks such as Renesas Electronics ＜6723＞, Lasertech ＜6920＞, Tokyo Electron ＜8035＞, and Advantest ＜6857＞ has a sales advantage, and automobile-related products such as Nissan's (7201), Toyota's own (7203), and Isuzu ＜7202＞ are also weak. In addition, Nippon Steel ＜5401＞, Kao ＜4452＞, and Kikkoman ＜2801＞ were sold.

By industry, while petroleum and coal products, metal products, machinery, banking, mining, etc. rose, transportation equipment, fisheries/agriculture and forestry, air transportation, electricity/gas, service industries, etc. declined.

The exchange rate has returned to the 154 yen level per dollar in the morning, and the furious trend of yen appreciation and dollar depreciation has come to an end. The risk-off mood intensified due to a sharp drop in Japanese and US stocks, and speculations about the Bank of Japan's interest rate hike to the monetary policy meeting receded slightly, and the 10-year government bond yield, which is an indicator of Japan's long-term interest rates, temporarily fell to 1.050%. It seems that the resolution of the depreciation position of speculators involved in the reduction in interest rate differences between Japan and the US has finally come to an end. The backstage Tokyo market is likely to get into a fight at the 38,000 yen level in response to a settlement in exchange rates, etc. It is a situation where it is easy for an autonomous backlash to enter due to the sharp decline the day before, but it will be difficult to enter aggressive push buying ahead of next week's Japan-US central bank meeting due to weak prices and the Japan-US central bank meeting next week. I would also like to be aware of the possibility that it will re-enter the negative zone compared to the previous day and continue to decline for 8 days until the close.

■The dollar and yen are falling, and there is little sense of direction

The dollar and yen fell in the Tokyo market on the morning of the 26th. They switched to buying dollars due to rising 10-year US bond yields, and the price was rounded up to 154 yen 12 yen at one point. However, after that, it stalled, and the price was lowered to 153 yen 39 yen. Looking at US interest rates and price movements in Japanese stocks, there was little sense of direction, and there was a fight in the latter half of 153 yen.

The trading range up to this point is from 153 yen 39 yen to 154 yen 12 sen for the dollar and yen, 166 yen 43 yen to 167 yen 29 sen for the euro and yen, and 1.0844 dollars to 1.0860 dollars for the euro dollar.

■Backstage check stocks

・3 brands, such as AMAZIA ＜4424＞ and WASH HOUSE ＜6537＞, etc., are stop-high

*Includes temporary stop height (sign value)

・The top contributor to price increases is Fast Rite (9983), and Shin-Etsu Chemical (4063) is in second place

■Economic indicators and statements from key figures

[Economic indicators]

・Japan-July Tokyo Metropolitan Consumer Price Index (excluding fresh food): +2.2% compared to previous year (forecast: +2.2%, June: +2.1%)

[Remarks by VIPs]

・Kanda Treasurer

“Excessive exchange rate fluctuations brought about by speculation require even greater attention”

“Disorderly movements adversely affect the economy”

＜Domestic＞

・ 14:00 May Business Trend Index · Prior Revised Value (Preliminary Value: 111.1)

＜Overseas＞

・Nothing in particular