In the afternoon of the 30th trading, there are three points that need attention:

- The Nikkei Average rebounded but paused at the 75-day moving average.

- The US dollar/Japanese yen is holding steady, trading around 144 yen.

- Advantest <6857> contributed the most to the price increase, followed by SoftBank Group <9984>.

The Nikkei Average rebounded but paused at the 75-day moving average.

The Nikkei Average rebounded. It ended the morning session of trading at 38,585.43 yen, up 222.90 yen (+0.58%) from the previous day. (Approximately 0.7 billion 10 million shares traded).

The US stock market on the 29th had mixed results. The Dow Jones Industrial Average closed at 41,335.05, up 243.63 points (+0.59%). The Nasdaq closed at 17,516.43, down 39.60 points (-0.23%). The S&P 500 closed down 0.22 points (-0.004%). The revised GDP for the April-June quarter and personal consumption exceeded expectations and the market rose after the market opened. The strong domestic economy, labor market, and consumer spending improved the outlook for the economy. In the final stages of trading, the decline in interest rates and semiconductor manufacturer Nvidia weighed on the Nasdaq, causing it to fall, and the Dow also narrowed its gains, but still reached a new all-time high.

Due to the mixed performance of US stocks, the Tokyo market started with a lack of direction. After the Nikkei Average started trading at the previous day's closing level, it reversed its direction as the exchange rate fell below 145 yen to the dollar. As it was the last trading day of the month, trading in the morning prime market was dominated by supply and demand, and it was difficult to see the focus of the market. The trading value in the morning session was 1.7 trillion yen, continuing to fall below 2 trillion yen.

In the Nikkei average stock selection, Tokyo Electric Power Co., Inc. <9501> was reported to be improving its transmission network, leading to buying of electric wire stocks such as Hitachi Cable, Ltd. <5801>, Fujikura Ltd. <5803>, Sumitomo Electric Industries, Ltd. <5802>. Additionally, Apple-related stocks like TDK Corp. <6762>, Taiyo Yuden Co., Ltd. <6976>, Murata Manufacturing Co., Ltd. <6981>, and Nitto Denko Corporation <6988> also performed well. Furthermore, NEC Corp. <6701>, Nippon Steel Corporation <5631>, Fuji Electric Co., Ltd. <6504>, and Softbank Group Corp. <9984> were bought.

On the other hand, Nitori Holdings Co., Ltd. <9843>, Nichirei Corporation <2871>, Meiji Holdings Co., Ltd. <2269>, and Kirin Holdings Co., Ltd. <2503> experienced slight declines as beneficiaries of the strong yen, while Terumo Corporation <4543> was sold due to concerns over supply and demand deterioration. In addition, ion Co., Ltd. <8267>, Shiseido Company, Limited Sponsored ADR <4911>, Keyence Corp. <6861>, Astellas Pharma Inc. <4503>, and Shimizu Corporation <1803> declined.

By industry sector, nonferrous metals, marine transportation, wholesale trade, transportation equipment, electrical and gas utilities all rose, while retail trade, pharmaceuticals, precision instruments, fisheries and forestry, and land transportation all declined.

The Nikkei average is slowly expanding its gains, but it seems that the 38,642 yen level where the 75-day moving average line is positioned will be a key resistance. With little afternoon news, it may be difficult to see a strong rally above this level. It should be noted that there will be changes in the constituent stocks of MSCI's standard index at the close. While newly added KOKUSAI ELECTRIC CO., LTD. <6525> is expected to generate buying demand, excluding companies like Kintetsu Group Holdings Co., Ltd. <9041>, Komatsu Ltd. <7276>, NXHD, Inc. <9147>, Nissan Chemical Corporation <4021>, and Yamato Holdings Co., Ltd. <9064> are expected to see selling demand.

■ The dollar-yen remains firm, moving around the 144 yen level

In the Tokyo market on the morning of the 30th, the dollar-yen remained firm, ranging from the mid-144 yen level to the latter half. With the reluctance of US 10-year bond yields to decrease, the dollar was not easy to sell, and the euro-dollar remained weak. Meanwhile, the Nikkei average stock price continued to rise, making it prone to yen selling due to favorable stock prices.

The trading ranges so far are 144.66 to 145.07 yen for the dollar-yen, 160.19 to 160.73 yen for the euro-yen, and 1.1070 to 1.1083 dollars for the euro-dollar.

Check stocks for the afternoon session

- Medicinova <4875>, Eyes <5242>, and other 5 stocks hit the limit up.

*Includes temporary stopper (indicated price)

- Advantest <6857> was the top contributor to price increase, followed by Softbank Group <9984>.

Economic indicators and remarks by important people

[Economic indicators]

- August Tokyo metropolitan area consumer price index (excluding fresh food): +2.4% YoY (estimate: +2.2%, July: +2.2%).

- July job-to-applicant ratio: 1.24x (estimate: 1.23x, June: 1.23x).

- July unemployment rate: 2.7% (estimate: 2.5%, June: 2.5%).

- 08:50 July mining and industrial production preliminary value: +2.8% month-on-month (estimation: +3.5%, June: -4.2%)

- Australian - July retail sales: 0.0% month-on-month (estimation: +0.3%, June: +0.5%)

[Important Person's Remarks]

- President of the Federal Reserve Bank of Atlanta, Raphael Bostic

"Inflation slowdown is faster than expected"

"Lower interest rates in the July-September quarter"

"It is necessary to confirm that there is no risk of raising interest rates again before deciding to lower interest rates"

"Prefer to avoid the mistake of waiting too long"

Not applicable.

Not applicable.