In the afternoon trading on the 29th, the following three points should be noted:
The Nikkei average fell for the third consecutive day as Nvidia declined, but the semiconductor stocks showed a slowing decline.
The dollar-yen is firm, maintaining the 144 yen level.
- SoftBank Group <9984> was the largest contributor to the decline, followed by Tokyo Electron <8035>.
The Nikkei average fell for the third consecutive day as Nvidia declined, but the semiconductor stocks showed a slowing decline.
The Nikkei average fell for the third consecutive day. It closed the morning session at 38,220.34 yen, down 151.42 yen (-0.39%) from the previous day, with an estimated volume of 500 million shares traded.
The U.S. stock market declined on the 28th. The Dow Jones Industrial Average closed at 41,091.42, down 159.08 points (-0.39%), the Nasdaq at 17,556.03, down 198.79 points (-1.12%), and the S&P500 at 5,592.18, down 33.62 points (-0.60%). With no major economic indicators released, the markets were mixed after opening. Profit-taking intensified from near all-time highs on the Dow, along with selling due to concerns of rising long-term interest rates on the Nasdaq, and pre-earnings announcement selling on semiconductor manufacturer Nvidia, leading to a day-long sell-off. The market remained bearish even towards the close of trading.
NVIDIA's earnings for the May-July 2024 period, announced in early morning Tokyo time on the 29th, exceeded market expectations in terms of performance and revenue outlook. However, in after-hours trading, there was a significant negative reaction with a temporary 8% drop from the previous day's closing price.
Influenced by the weak movement in NVIDIA's stock, the Tokyo market started with a preference for selling in semiconductor stocks. Although the Nikkei average briefly dropped below 38,000, semiconductor stocks like Tokyo Electron <8035> and Advantest <6857> gradually reduced their decline. The Nikkei average recovered to above 38,000 by the end of the morning trading session. Trading volume in the prime market remained quiet at 1.6 trillion yen.
Among the Nikkei average constituent stocks, Nidec <6594> became more popular for selling after Super Micro Computer, its collaborative partner, announced a delay in submitting the annual report for the June 2024 period. Additionally, ZOZO <3092>, Sumitomo Pharma <4506>, Screen HD <7735>, SoftBank Group <9984>, and Credit Saison <8253> showed uninspiring performances.
News of policy-related stock divestment stimulated buying in insurance stocks like SOMPO Holdings <8630>, T&D Holdings <8795>, and Tokio Marine <8766>. Others like Daiichi Sankyo <4568>, Itochu <8001>, Taiyo Yuden <6976>, TOPPAN Holdings <7911>, and Meiji Holdings <2269> saw an increase in value.
By industry sector, securities and commodity futures trading, pulp and paper, nonferrous metals, service industries, and land transportation declined. Conversely, insurance, marine transportation, wholesale trade, pharmaceuticals, and electric and gas industries rose.
As the main event of the week, Nvidia's earnings announcement ended disappointingly, leading to continued sluggish trading in the Tokyo market around the mid-38,000 yen range. While semiconductor stocks like Tokyo Electron showed resilience with a modest decline, there seemed to be a lack of catalysts to test higher levels, likely resulting in directionless movements for the Topix and Nikkei averages until the weekend.
The dollar-yen remains firm, maintaining the 144 yen range.
In the morning session of the Tokyo market on the 29th, the dollar-yen remained firm and consolidated around the mid-144 yen level. The dollar was sold off due to speculation of an early interest rate cut by the Federal Reserve, resulting in a decline in US interest rates. On the other hand, the yen buying weakened due to the smaller decline in the Nikkei Stock Average, supporting the dollar.
The trading range so far is as follows: the dollar-yen ranges from 144.22 yen to 144.69 yen, the euro-yen ranges from 160.43 yen to 161.02 yen, and the euro-dollar ranges from 1.1120 dollars to 1.1133 dollars.
Check stocks for the afternoon session
Beemap <4316>, Acryte <4395>, and 6 other stocks hit the daily limit.
*Includes temporary stopper (indicated price)
- SoftBank Group <9984> was the largest contributor to the decline, followed by Tokyo Electron <8035>.
Economic indicators and remarks by important people
[Economic indicators]
Not applicable.
[Important Person's Remarks]
・Warren, Federal Reserve Board Director
"Due to variations in the spread of high-speed payment networks domestically, the value of a globally interconnected system has not yet been clearly defined."
Not applicable.
Not applicable.