In trading five days ago, there are three points to note.

Shift to yen-appreciated-benefit stocks in a less expected autonomous rebound.

■ Ain HD, 25/4 upward revision Operating profit 1936 billion yen ← 178 billion yen

■ Mazda, attention in the morning: development of new engines for HV, consolidation to 4 current models

Shift to yen-appreciated-benefit stocks in a less expected autonomous rebound.

The stock market in Japan on the 5th seems to be about to determine the immediate bottoming out in the midst of a predominance of selling. In the U.S. market on the 4th, the NY Dow was up 38 points and the Nasdaq was down 52 points. Due to the unexpected decrease in the JOLTS job openings in July, there was growing speculation of a significant interest rate cut. However, in the Federal Reserve's Beige Book released by the Federal Reserve Board (FRB), it indicated a mild deceleration in economic activity, contributing to a strong wait-and-see stance in consideration of the U.S. employment statistics over the weekend. The Chicago Nikkei 225 futures clearing price was 27,500 yen lower at 36,725 yen compared to Osaka. The yen was trading around 143.50 yen per dollar.

The Nikkei Stock Average is likely to start with a selling lead as it adjusts to the Chicago futures. Although buying aimed at autonomous rebounds in response to the significant previous decline is likely, a 0.5% rate cut is expected at the Federal Open Market Committee (FOMC) in the U.S. due to the slowness in the labor market. In the foreign exchange market, the dollar is fluctuating at around 143 yen per dollar, and with the anticipation of U.S. employment statistics over the weekend, it is unlikely that the momentum for a rebound will increase.

On the contrary, the Nikkei 225 futures were sold down to 36,520 yen in the night session. Immediately after the start, there was some rebound movement from the 1790 yen decrease of the previous day, but it was somewhat suppressed near the 200-day moving average. If the same line is perceived as a resistance line, short movements are likely to intensify, and around the milestone of 36,000 yen seems to be in scope. The Nikkei Stock Average fell below 37,000 yen temporarily yesterday, and there is a possibility that around 37,115 yen, where the 25-day average is positioned, will be perceived as a resistance line.

If the sluggishness of the rebound continues to be disliked, it is expected that there will be a move to sell short-term positions. Yesterday, more than 90% of stocks on the Tokyo Stock Exchange Prime fell, indicating a market condition of overall decline. It is believed that export stocks are difficult to handle due to the trend of yen appreciation, and attention is focused on whether high-tech stocks that have a significant impact on the index will show a slow decline.

Furthermore, in the midst of the yen appreciation trend, it is likely that funds targeting profit-taking trades will flow into stocks that benefit from yen appreciation. In addition, in a market biased towards downward movements due to trading related to indexes, it is believed that individual investors' funds are more likely to flow into small and mid-cap stocks that are less influenced by indexes.

■ Ain HD, upward revision on 25/4, operating profit 19.36 billion yen ← 17.8 billion yen

Ain HD <9627> announced a revision of the performance forecast for the fiscal year ending in April 2025. The sales revenue has been revised upward from 415 billion yen to 453.5 billion yen, and the operating profit has been revised upward from 17.8 billion yen to 19.36 billion yen. During the first quarter of this fiscal year, in the pharmacy business, the prescription unit price has been rising due to the prescription of high-priced pharmaceuticals, and the number of prescriptions has been steadily increasing. In the retail business, the number of customers is also growing, and the unit price is rising due to the increase in sales of Asian cosmetics and high-priced cosmetics that are being focused on.

Materials of concern in the morning session

・ NY Dow Jones Industrial Average rose (40974.97, +38.04)

・ SOX index rose (4770.85, +11.85)

Long-term US interest rates fell.

Expectations for inflation to ease in the US.

Active share buybacks

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

Mazda Motor Corp <7261> is developing a new engine for hybrid vehicles, consolidating the current models into four types.

Brother Industries <6448> adds gear processing function to small MCs, compatible with e-axle production.

UBE <4208> UBE Mitsubishi Cement promotes DX with 200 personnel, aiming for development by 2030.

Hitachi <6501> President innovates the field with data and technology utilizing AI, robotics, etc.

ispace <9348> transports lunar exploration vehicle to Japan, scheduled for launch this winter.

Nippon Steel <5401> Majority of US Steel Directors are US citizens, governance policy.

Itochu <8001> Invests in emerging metaverse, expanding clothing and anime goods sales.

Kyouso Flow <9369> Double-conveys snacks and non-industry cargo with NLJ, etc. using trucks.

Yokogawa Electric <6841> Lightweight, low-power consumption battery electrode film thickness measurer.

Pacific Cement <5233> Mitsubishi Heavy Industries and 7 other companies adopt CCS project concept on the Japan Sea side of Tohoku.

NTT <9432> IOWN promotes international standardization for service utilization.

Safie <4375> Supports operational efficiency at local sites in Vietnam.

Alps Alpine <6770> Sells power inductor business to Taiwanese company.

TOPPANHD＜7911＞TOPPAN Digital, development of opening detection IC label, proposal for medical use.

Softbank＜9434＞ Provision of satellite communications for corporations and local governments in December.

Nidec＜6594＞ Adoption of water cooling mechanism by Fujitsu, in optical transmission systems.

Toda Construction＜1860＞ Expanding business foundation by acquiring plant installation and management in the United States.

Daisel＜4202＞ Improvement of biodegradability of cosmetic ingredients from plants.

☆ Schedule of events in the morning session

08:30 Total cash remuneration in July (Year-on-year forecast: +2.9%, June: +4.5%)

- 10:30: Greeting from Takada, a member of the Bank of Japan's Monetary Policy Committee.

- 10:30: Australia - July Trade Balance (Estimate: +5 billion Australian dollars, June: +5.589 billion Australian dollars)