There are three points to focus on in the trading session on the 22nd.

■ With important events pending, the market development is being monitored in relation to foreign exchange.

■ No earnings reports.

■ Focus of the morning session: JGC Holdings and Ministry of Economy, Trade and Industry (METI), establishing a council for common specifications for CO2 transportation.

■ With important events pending, the market development is being monitored in relation to foreign exchange.

In the Japanese stock market on the 22nd, there is a sense of stagnation ahead of the important event, but there seems to be strong buying interest on the dip. In the US market on the 21st, the Dow Jones Industrial Average was up 55 points and the Nasdaq was up 102 points. The revision of the US employment figures for the past year (preliminary value) announced by the Bureau of Labor Statistics (BLS) of the US Department of Labor, which resulted in a significant downward revision of the number of employees up to March, increased expectations of interest rate cuts. In addition, the minutes of the Federal Reserve Open Market Committee (FOMC) for the July meeting published by the Federal Reserve (FRB) suggested an interest rate cut in September, which was also considered significant. The closing price of the Chicago Nikkei 225 futures settlement was 37,885 yen, down 85 yen from Osaka. The yen is trading at around 145 yen against the dollar.

Starting from a slightly bearish position, due to the shift in Chicago futures, it is expected to be difficult to handle exports and other related industries due to the expectation of an interest rate cut at the September FOMC meeting in the United States and the fluctuation of the yen market to a slightly stronger yen. In a situation where the yen is strengthening, short-term speculative selling movements are also likely to occur, so it is expected to continue to monitor the market development in relation to foreign exchange.

However, considering the approaching speech of Chairman Powell of the Federal Reserve (FRB) at the Jackson Hole Symposium, active buying and selling is likely to be restrained. Regarding the selling movements, it is also considered likely to prompt early buybacks, and in the event of a major sell-off, it is expected to encourage a stance of aiming for a rebound afterwards. The trading volume of the Tokyo Prime market yesterday remained around 1.3 billion shares, and with limited market participants, it is a supply-demand situation that is easily influenced by short-term speculative trading, but it is considered difficult for a trend to develop.

The Nikkei 225 futures saw volatile price movements during the night session, but it remained within a range around 38,000 yen. Although yesterday's Nikkei average stock price declined, it almost reached the opening price as the decline narrowed, indicating strong buying interest on dips. While it may be difficult to expect an aggressive push towards higher prices, it seems likely that there will be a shift towards waiting for profit-taking opportunities after key events pass. As the Nikkei average stock price remains in a stalemate, individual funds are likely to shift towards small and mid-cap stocks and away from index-based funds. The Growth 250 Index has been catching the 75-day moving average on the recent rebound, and it seems that the bias is likely to move higher if it surpasses the same line.

No earnings reports.

Materials of concern in the morning session

- The Dow Jones Industrial Average rose (40,890.49, +55.52)

- The Nasdaq Composite Index rose (17,918.99, +102.05)

- The SOX Index rose (5,267.93, +71.63)

Long-term US interest rates fell.

Expectations for inflation to ease in the US.

Active share buybacks

Request for improvement in corporate value by the Tokyo Stock Exchange.

JGC Holdings (1963) collaborated with the Ministry of Economy, Trade and Industry to establish a council for common specifications for CO2 transportation.

Toho Gas (9533) and Tokyo Gas, discussing synthetic methane production and export with an Australian company in detail.

Nippon Yusen (9101) agreed with Kyuden, etc. to transport green ammonia from India by sea.

Orbick (4733) collaborates with PayPay on digital wage payments.

Kawasaki Heavy Industries (7012) involved in inspection irregularities and tampering with marine engine data.

Mitsui Chemicals (4183) to resume ethylene production at the Osaka plant in October.

- Tohoku Special Steel <5484>: Tomato cultivation, pest control with vibration, device using magnetostrictive material - confirming behavior inhibition

- Daio Paper <3880>: Tokyo District Public Prosecutor's Office rejects Japan Paper's claim, denies patent infringement on long roll toilet paper

- Mitsui & Co. <8031>: New company processes electromagnetic steel plates in Poland

- Sumitomo Corporation <8053>: Geothermal power generation starts operation in New Zealand, equivalent to 0.2 million households per year

- Iseki & Co. <6310>: Expanding production in Indonesia, transferring medium-sized and larger tractors for overseas markets

- Eiken Chemical <4549>: Automated clinical testing and device connection on conveyor lines with Hitachi High-Tech, etc.

- Sony Group <6758>: Providing development support software for gaming with three-dimensional sound

- NTT Data <9613>: Mr. Sasaki Hiroshi focuses on overseas expansion, leveraging unique strengths

- Sumitomo Chemical <4005> opens a new building for research and development in Sodegaura, Chiba, aiming to reduce the environmental impact of petrochemicals.

- Mitsubishi Materials <5711> develops a square-shaped silicon substrate for the next-generation semiconductor packaging.

- Heiwa Real Estate <8803> plans to open the "Park Hyatt Sapporo" hotel in 2029 as part of a redevelopment project to strengthen the hotel business.

- Kyushu Electric Power <9508> collaborates with Tohoku Enterprise to develop the application of quadruped robots.

- Komatsu Matele <3580> takes on the challenge of expanding into the European and Chinese markets, led by Mr. Daisuke Nakayama.

- Kobe Steel <5406> forms a joint venture with three Chinese companies for aluminum panel production for automobiles.

- Denka <4061> will increase the prices of synthetic rubbers and water-hardening cement starting next month.

☆ Schedule of events in the morning session

Not applicable.

Not applicable.