In the afternoon trading on the 23rd, attention should be paid to the following three points.
- The Nikkei average fell, with a strengthening of the yen due to Governor Ueda of the Bank of Japan's statement.
- The dollar-yen is weak, keeping an eye on the Bank of Japan's policy direction.
- Tokyo Electron <8035> was the top declining stock contributor, followed by Advantest <6857>.
■ The Nikkei average falls, as Governor Ueda of the Bank of Japan's statement causes a strengthening of the yen.
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.
■ The dollar-yen rate is soft, with close attention to the Bank of Japan's policy direction.
On the morning of the 23rd, the dollar-yen rate softened in the Tokyo market, dropping from 146.33 yen to 145.30 yen. Governor Ueda stated during the House of Representatives' Financial Affairs Committee on the 23rd that he would assess the economic and price situation to adjust the degree of easing. While the response was limited, it led to a wave of yen buying.
The trading range up to this point is 145.30-146.33 yen for the dollar-yen rate, 161.69-162.62 yen for the euro-yen rate, and 1.1110-1.1128 dollars for the euro-dollar rate.
Check stocks for the afternoon session
- Will Smart <175A> and Iore <2334>, among others, had their daily limit up with an increase of +2.7% (forecast: +2.7%, June: +2.6%).
*Includes temporary stopper (indicated price)
- Tokyo Electron <8035> was the top declining stock contributor, followed by Advantest <6857>.
Economic indicators and remarks by important people
[Economic indicators]
- July national consumer price index (excluding fresh food): +2.7% year-on-year (forecast: +2.7%, June: +2.6%).
[Important Person's Remarks]
- Haruhiko Kuroda Bank of Japan Governor
Maintain a loose financial environment to support the economy.
The USD/JPY exchange rate has undergone a correction from one-sided yen depreciation.
Consider the risk of price overruns due to price prospects and rising import prices for the rate hike in July.
Factors such as the early August stock market decline and concerns about a slowdown in the US economy rapidly spreading.
The early August yen appreciation and the background of the Bank of Japan's policy change.
Evaluate the impact of the financial capital markets on the economy and prices, and the impact of the rate hike in July.
Adjust the degree of easing if it is confirmed that there is an increase in the certainty of achieving the expected economic and price outcomes.
- 13:00 Mr. Ueda, Governor of the Bank of Japan, will attend the closed session of the National Diet (House of Councillors Financial Affairs Committee).
Not applicable.