The Nikkei average is down, closing the morning trading at 38,117.44 yen (volume approximate 0.6 billion 30 million shares) with a decrease of 93.57 yen (-0.24%) from the previous day.
On the 22nd, the U.S. stock market fell. The Dow average closed at 40,712.78, down 177.71 dollars (-0.43%), the Nasdaq closed at 17,619.36, down 299.63 points (-1.67%), and the S&P 500 closed at 5,570.64, down 50.21 points (-0.89%). The weekly jobless claims did not surprise, the rapid deterioration concerns of the labor market retreated, and the market rose after the opening. Existing home sales exceeded expectations, leading to a rise in long-term interest rates, resulting in selling centered around high-tech. Subsequently, cautionary selling also increased ahead of the speech by Federal Reserve Board (FRB) Chairman Powell, and the market widened its decline towards the end.
Although the U.S. stocks fell, the Tokyo market took a cautious stance and started firmly. Governor Ueda of the Bank of Japan stated during the closed-session review, 'Financial markets continue to be in an unstable situation,' and further explained, 'If we confirm an increase in the likelihood that the economic and price outlook will materialize as we expected, our basic stance to adjust the degree of monetary easing will remain unchanged.' Despite showing consideration for the market, his statements at the press conference on July 31 did not change significantly, causing the yen to strengthen and the dollar to weaken to the 145.20 yen level temporarily. Due to the strengthening yen, the Nikkei average, which had been trading in the plus territory against the previous day, shifted to the minus territory.
In the Nikkei stock offerings, the semiconductor stock price index (SOX index) fell more than 3% from the previous day, causing semiconductor stocks such as Laser Tech <6920>, Advantest <6857>, Socionext <6526>, Renesas Electronics <6723>, and Tokyo Electron <8035> to be sold as a whole. In addition, Furukawa Electric <5801>, Fujikura <5803>, Ebara Corporation <6361>, and Resonac <4004> declined.
On the other hand, SoftBank <9434> reported a 100 billion yen investment, leading to a sharp rise in Sharp <6753>. In addition, based on securities company reports, Taisei Corporation <1801> and Obayashi Corporation <1802> were bought. Additionally, Hitachi Zosen <7004>, Meiji Holdings <2269>, Konica Minolta <4902>, and Comsys Holdings <1721> were also purchased.
In global sectors, electric appliances, insurance, wholesale trade, nonferrous metals, glass and stone products declined, while construction, precision instruments, other financing business, petroleum and coal products, and warehouse/transport-related businesses rose.
At lunchtime, the exchange rate was hovering around 145 yen per dollar, and the yen's strength and the dollar's weakness seem to have eased in response to Governor Ueda's remarks. Market focus is shifting towards Fed Chair Powell's speech at the Jackson Hole meeting at 11 PM tonight, so the Tokyo market is expected to have a quiet session in the afternoon. The Nikkei average is likely to be in a consolidation phase around the 38,000 yen level, but due to Governor Ueda's attendance at the closing session of the House of Councillors' Financial Affairs Committee this afternoon, it is advisable to keep an eye on the currency movement just in case.