In the morning session of the 30th day of trade, we want to focus on the following three points.

■Market development focused on rebounding despite the deadlock.

■Tohsho, 25/3 upward revision Operating profit 5 billion yen ← 4.7 billion yen

■Focus materials in the morning session: Nippon Steel, arbitration result of United States Steel acquisition next month, Vice Chairman outlook

■Market development focused on rebounding despite the deadlock.

The Japanese stock market on the 30th is likely to develop a market trend that is conscious of a rebound even though it is deadlocked. On the 29th, the US market saw the NY Dow rise by 243 points, while the Nasdaq fell by 39 points. The revised value of the US real gross domestic product (GDP) for the April-June period was upwardly revised from the preliminary value, and the new jobless claims matched expectations. The US economy was bought in anticipation of a soft landing, leading the NY Dow to reach a record high. However, the decline of nvidia became a burden and caused the Nasdaq to fall. The settlement price of the Chicago Nikkei 225 futures was 65 yen lower than Osaka at 38,285 yen. The yen exchange rate is hovering around 144.80 yen per dollar.

It is expected that there will be some selling pressure initially following the adjustment to the Chicago futures. However, although nvidia was sold, it may have already been priced in, considering the temporary 8% decline in the previous day's extended hours trading. The impact on the overall US market that was being watched closely seems limited, and a move towards a measured action is likely to be observed. In addition, there were moments during the night session where the Nikkei 225 futures were bought up to 38,830 yen. A temporary move above the 75-day line, which is being considered as resistance, is likely to lead to a stance of targeting dips.

First, it seems that there will be a movement of buybacks in tech stocks while judging the resilience of companies such as Toho Electric <8035> and Advantest <6857>. It is also possible that tech stocks, which have a significant impact on the index, could push up the Nikkei average. On the other hand, although there is caution about active trading due to weekend factors, if there is resilience in the downside, index buying by funds that had been late to buy could become more likely.

Furthermore, the strong rebounding Growth 250 Index is currently being restrained by the 200-day line. However, strong movements have been seen in recent IPO stocks such as Timee <215A>, and the trading enthusiasm of individual investors seems strong. It is considered that if the stalemate feeling in the Nikkei average intensifies due to weekend factors, funds targeting value variances, especially in small and mid cap stocks, are likely to be concentrated.

Tokusho revised its operating profit for March 25 to 5 billion yen, up from 4.7 billion yen.

Tokyo Shoji (8920) announced a revision of its financial estimates for the fiscal year ending in March 2025. Revenue has been upwardly revised from 25 billion yen to 34 billion yen, and operating profit has been revised from 4.7 billion yen to 5 billion yen. The sale of real estate (beneficial interests in trust) for sales purposes was decided in the second quarter, so the expected figures are expected to exceed the previous announcement.

Materials of concern in the morning session

- The NY Dow rose (41335.05, +243.63)

- 1 dollar = 144.80-90 yen.

- VIX index decreased (15.65, -1.46).

- Crude oil futures in the USA rose (75.91, +1.39).

Expectations for inflation to ease in the US.

Active share buybacks

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

Okaya Steel Machinery <7485> Expands in Asia, Establishes New Company in Vietnam and Increases Staff in India

Nippon Steel <5401> Arbitration Result on Acquisition of US Steel Expected Next Month, Vice Chairman Provides Outlook

NTT <9432> Establishes IOWN International Communication Link with Chunghwa Telecom, First-time Cross-Strait Communication

TDK <6762> Collaborates with Tokyo Medical and Dental University on Non-Contact Heart Activity Measurement Using Magnetic Sensors

Sojitz <2768> Invests in Agricultural DX Startup, Promoting Grain Harvest Forecast

- Toyota Automotive <7203> begins operations at Beijing factory, producing fuel cell technology for commercial vehicles.

- MK Seiko <5906> adds electronic payment feature to high-pressure washing machine.

- Macnica HD <3132> holds test drive event for autonomous electric buses with NTT West and others.

- JVC Kenwood <6632> releases all-directional dashcam with double the capacity and high durability recording.

- Sumitomo Rubber <5110> President Satoru Yamamoto focuses on larger-sized tires.

- Makino Frasers <6135> introduces 5-axis horizontal machining center capable of handling large workpieces.

- Park24 <4666>, Powerex, and two other companies conduct rapid charging demonstration at hourly parking lots.

- Hitachi <6501> to begin construction and operation of commercial battery energy storage systems in October, utilizing AI technology.

- Mercari <4385> expands into the bay and allows direct purchase of listed items.

- Mitsubishi Estate <8802> and Obayashi Corporation verify outdoor testing and maintenance methods for cross-laminated timber.

- China Electric Power <9504> offers new menu options for all-electric residences with lower daytime rates.

☆ Schedule of events in the morning session

- 08:30 August Tokyo metropolitan area consumer price core index (YoY forecast: +2.2%).

- 08:30 July job openings-to-applicants ratio (forecast: 1.23 times, June: 1.23 times).

- 08:30 July unemployment rate (forecast: 2.5%, June: 2.5%).

- 08:50 July mining and manufacturing production flash estimate (previous month expectation: +3.5%, June: -4.2%).

- 10:30 Australian July retail sales (previous month expectation: +0.3%, June: +0.5%).