In the morning session on the 13th, the following three points deserve attention.
Moves to review based on performance surface
Japan Post, 1Q operating profit increased by 22.2% to 211.4 billion yen
Mitsubishi Electric Corp. will build a new FA plant in China, the fourth in Dalian, aiming to increase demand for decarbonization in the medium to long term.
Moves to review based on performance surface
On the 13th, the Japanese stock market is likely to have a stalemate after a round of buying, but the stance is likely to lean towards buying on dips. On the 12th, the NY Dow fell by 140 points, and the Nasdaq rose by 35 points. The possibility of an Israeli retaliation attack by Iran has been reported, and selling from vigilance against geopolitical risks has become a burden. In addition, there was a selling adjustment ahead of the release of important inflation indicators. On the other hand, buying back movements in semiconductor stocks such as Nvidia, from their perceived value, led to 3 consecutive gains in the Nasdaq index. The settlement price of the Chicago Nikkei 225 futures is 35,545 yen, 495 yen higher than Osaka. The yen exchange rate is hovering around 147.10 yen per dollar.
It is likely to start with buying, borrowing from the flow of US semiconductor stocks being bought, although the rising geopolitical risk in the Middle East will be a burden, high-tech stocks with large index impact will support the Nikkei Average. Also, the Nikkei average stock price has continued to rebound since the sharp decline on the 5th. Although the situation is volatile, the selling pressure from hedge funds' long position liquidation is considered to have passed, making the buying interest in waiting for dips strong.
The Nikkei average stock price has completed both the sharp decline part on the 5th and the filling of the gap due to the rebound last week. Although it is easy to feel that the round has been completed in the short term, it is likely to develop toward filling the gap of 35,089 yen to 35,909 yen on the weekly basis. From the movement of consolidating values at the 35,000 yen level, the next target is likely to be around 36,000 yen where the 52-week line is positioned. In addition, due to the sharp decline this time during the earnings announcement season, it had become an irregular decline ignoring performance factors. Since the peak of earnings announcements has passed, it is likely to develop movements to review performance factors once again.
In terms of selections, in addition to high-tech stocks with a large index impact, companies that announced earnings after the close on the 9th, such as Japan Post <6178>, T&DHD <8795>, Shikoku Electric Power <9507>, Odakyu Electric Railway <9007>, Konica Minolta <4902>, Mitsukoshi Isetan <3099>, Meitetsu <9048>, Square Enix Hd <9684>, Miraito One <1417>, DOWA <5714>, etc. are the focus. In addition, due to vigilance against geopolitical risks, short-term funds are likely to flow into resource stocks and the like.
Japan Post, 1Q operating profit increased by 22.2% to 211.4 billion yen
Japan Post <6178> announced the 1st quarter results for the year ending March 2025, with recurring revenue down 3.9% from the same period last year to 2.735.888 trillion yen and recurring profit up 22.2% to 211.449 billion yen. There was an increase in investment revenue at its subsidiary Yucho Bank <7182>, and capital gains and losses at Kanpo Life Insurance <7181> improved. The plan for the annual results for the year ending March 2025 will maintain recurring revenue of 11.280 trillion yen, down 5.9% from the previous year, and recurring profit of 760 billion yen, up 13.7% from the previous year.
Materials of concern in the morning session
Nikkei Average rose (35025.00, +193.85).
Nasdaq Composite Index rose (16780.61, +35.31).
1 dollar = 147.10-20 yen.
Chicago Nikkei futures rose (35545, +495 compared to Osaka).
SOX index rose (4743.82, +34.37).
US crude oil futures rose (80.06, +3.22).
Expectations for inflation to ease in the US.
Active share buybacks
Request for improvement in corporate value by the Tokyo Stock Exchange.
Mitsubishi Electric Corp. <6503> will build a new FA plant in China, the fourth in Dalian, aiming to increase demand for decarbonization in the medium to long term.
Sumitomo Heavy Industries <6302> won orders twice as much as last year at 60 billion yen for conveying equipment expansion, capturing demand for automation.
Shibuya Kogyo <6340> will invest 1.75 billion yen to increase production of beverage filling systems and medical devices with 4 factories in Ishikawa.
Nippon Steel <5401> plans a 6 billion yen investment in Thailand to improve facilities and improve the quality of hot-rolled products.
Sojitz <2768> partners with Dutch companies to develop ship dismantling automation and speed up.
NEC <6701> and Daiwa Institute of Research will build basic system for securities business of financial institutions.
JFE Holdings <5411>: JFE Engineering wins bridge construction order in Nicaragua
NTN <6472> has sharpened its production technology, transplanting high-efficiency joints to Europe.
DENSO <6902> collaborates with JERA to generate hydrogen efficiently from thermal power waste heat.
Suzuki <7269> recognized as an ESG brand in the FTSE index.
Shintou Kogyo <6339> establishes a clean environment laboratory, achieving Class 7 surface treatment.
Shimadzu Corporation <7701> collaborates with Shinshu University to implement clean energy society based on water.
☆ Schedule of events in the morning session
8:50, July domestic corporate price index (YoY estimates: +3.0%, June: +2.9%).
Not applicable.