In the afternoon of the 28th session, the following three points should be noted.

・The Nikkei average fell slightly, with quiet trading ahead of Nvidia's earnings.

・The dollar-yen is firm, stabilizing around 144 yen.

・Top contributors to the decline were Tokyo Electron Co., Ltd. <8035>, followed by SoftBank Group Co., Ltd. <9984>.

■The Nikkei average fell slightly, with quiet trading ahead of Nvidia's earnings.

The Nikkei average fell slightly. It ended the morning session trading at 38,199.52 yen (down 89.10 yen or -0.23%) with a trading volume of approximately 0.6 billion 90 million shares.

The U.S. stock market rose slightly on the 27th. The Dow Jones Industrial Average closed at 41,250.50 dollars, up 9.98 points or 0.02%, the Nasdaq rose 29.05 points or 0.16% to 17,754.82, and the S&P 500 rose 8.96 points or 0.16% to 5,625.80. After opening lower due to the rise in long-term interest rates, the market recovered as the August consumer confidence index unexpectedly improved. In anticipation of Nvidia's earnings announcement for semiconductor manufacturing, the high-tech sector rose, providing support to the market. The Dow Jones Industrial Average barely recovered into positive territory towards the end of the day. The Dow has set record highs for consecutive days.

While U.S. stocks rose slightly, the Tokyo market started with a slight downward trend due to the yen's appreciation and the dollar's depreciation compared to the previous day. The Nikkei average, which started with a slight decrease, saw little buying and selling activity and remained relatively unchanged from the previous day's closing level. With the upcoming Nvidia earnings announcement, active trading was restrained, and the trading value in the morning session's main market remained at 1.6 trillion yen.

In the Nikkei average constituent stocks, resource-related stocks such as Idemitsu Kosan and Inpex fell due to the decline in crude oil prices, as well as Sumitomo Chemical and Sumitomo Pharmaceuticals, which are promoting structural reforms. Additionally, Aozora Bank, SUMCO, Taiyo Yuden, Taiheiyo Cement, SoftBank Group, and Tokyo Electron were sold.

On the other hand, Toyota Motor surged due to expectations of additional share buybacks, and JTEKT continued to be bought due to expectations of its medium-term management plan. Furthermore, Rakuten Group recovered in the 1000 yen range with a year-to-date high following a positive report from a securities firm. Advantest, Laser Tech, Daiichi Sankyo, DIC, TOPPAN Holdings, Sony Group, and others were also bought.

By industry, pulp and paper, mining, petroleum and coal products, metal products, and fisheries and agriculture declined, while transportation equipment, pharmaceuticals, precision instruments, insurance, and service industries rose.

In the morning, Narihisa Himi, Deputy Governor of the Bank of Japan, mentioned at the Financial and Economic Dialogue that a correction in the weak yen would reduce the risk of upward pressure on consumer prices through imported prices and could have a positive impact on household consumption. He also pointed out that a strong yen could affect inbound demand and a decline in stocks could affect luxury goods consumption. With a press conference scheduled for the afternoon, there is a possibility of exchange rate fluctuations. However, if the morning's statement holds, the Tokyo market in the afternoon is likely to be a calm market. Due to the cautious stance, it is expected that the Nikkei average will continue to show small movements around the previous day's closing level.

The dollar-yen is firm, rising to the 144 yen level.

In the morning of the 28th, the dollar-yen showed a firm movement in the Tokyo market. The early anticipation of the Federal Reserve's (FRB) early interest rate cut led to selling of the dollar, causing it to drop to 143.68 yen at one point. However, the dollar strengthened due to buying on a bargain, recovering to around 144.50 yen by noon.

The trading range so far is 143.68-144.49 yen for the dollar-yen, 160.70-161.36 yen for the euro-yen, and 1.1170-1.1185 dollars for the euro-dollar.

Check stocks for the afternoon session

- Six stocks such as Awun Consulting <2459> and Oruto Plus <3672> hit the daily limit.

*Includes temporary stopper (indicated price)

- Tokyo Electron <8035> was the top contributor to price declines, followed by Softbank Group <9984>.

Economic indicators and remarks by important people

[Economic indicators]

- Australian July consumer price index: +3.5% YoY (estimate: +3.4%, June: +3.8%).

[Important Person's Remarks]

- Himiya Nintong Deputy President

The basic policy is to adjust the degree of monetary easing if the direction of achieving the economic and price target can be achieved.

The financial capital market continues to be unstable, and we will continue to closely monitor it with a very high level of tension.

We will communicate with the market and appropriately manage policies.

We will continue to refine the neutral interest rate, but we will determine the path based on actual economic and price conditions.

We would like to publish the results of the comprehensive review within the year.

Not applicable.

- 14:15 Warer US FRB Director's lecture (payment-related, World Fintech Congress, Mumbai)