Tokyo Market Summary: Nikkei Average Falls; Kioxia Surges Sharply Amid Higher US Memory Stocks, Earnings Report Today; Defense Stocks Drop, Koichi Trade Pauses; Artificial Diamond-Related Stocks Soar, Minister Akazawa Travels to the US for Investment Discussions; Sumitomo Metal Mining Extends Gains as Gold Prices Rise
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The stock market overview for today is as follows. Thank you for your attention.
Market Overview
The Nikkei average on the 12th fell for the first time in four days. The closing price was down 10 yen at 57,639 yen. While the Tokyo market was closed, US stocks struggled to gain momentum, but trading opened strongly with a rise of over 200 yen. However, price movements became somewhat unstable after opening.
The Nikkei average on the 12th fell for the first time in four days. The closing price was down 10 yen at 57,639 yen. While the Tokyo market was closed, US stocks struggled to gain momentum, but trading opened strongly with a rise of over 200 yen. However, price movements became somewhat unstable after opening.
In the early session, there was an upward trend as gains expanded beyond 300 yen. A sense of achievement emerged when it surpassed the milestone of 58,000 yen, leading to a sharp deceleration, reversing into a decline by the end of the morning session. There was no deep pullback, and shortly after the afternoon session began, it moved back into positive territory and again expanded gains into triple digits. However, after 3 PM, prices rapidly declined, closing slightly lower. Many stocks rose on the Prime Market, and TOPIX gained.
The trading volume on the TSE Prime was approximately 9.94 trillion yen. By sector, mining, nonferrous metals, and electric and gas industries rose, while services, miscellaneous products, and air transportation fell. Companies that reported better-than-expected results last quarter and announced plans for revenue and profit growth along with increased dividends were well received. $Kubota (6326.JP)$ Stocks that attracted buying interest in the afternoon hit the upper limit. On the other hand, companies that announced an operating loss forecast and suspension of dividends for the current period immediately after the morning session ended... $Toyo Engineering (6330.JP)$ ...hit the lower limit. During the afternoon trading session, selling pressure surged, leaving the stock unable to find a price.
[Today's Buy/Sell Dominance Situation]
In the Tokyo Stock Exchange Prime Market on February 12, the buy-dominant amount was 1.56 trillion yen, while the sell-dominant amount was 1.54 trillion yen.
In the Tokyo Stock Exchange Prime Market on February 12, the buy-dominant amount was 1.56 trillion yen, while the sell-dominant amount was 1.54 trillion yen.
Top News
Kioxia - Sharp rebound after 5 days, buoyed by the rise in US memory stocks; earnings announcement scheduled for today
$Kioxia Holdings (285A.JP)$ rebounds sharply after five days. The rise in U.S. memory stocks is being seen as a positive factor.
Kioxia - Sharp rebound after 5 days, buoyed by the rise in US memory stocks; earnings announcement scheduled for today
$Kioxia Holdings (285A.JP)$ rebounds sharply after five days. The rise in U.S. memory stocks is being seen as a positive factor.
In the U.S. market yesterday, tech stocks performed solidly, with memory-related stocks showing significant gains. Micron Technology surged nearly 10%, while SanDisk, which jointly operates factories with Micron, jumped nearly 11%.
Following this trend, buying has also flowed into this major domestic memory company. In addition, the company is expected to release its earnings report today, likely leading to purchases driven by expectations of strong performance.
[Stocks to Watch] Defense-related stocks fall amid profit-taking; near-term trading in Takamichi may pause
$IHI (7013.JP)$ has fallen more than 7%. Meanwhile, $Mitsubishi Heavy Industries (7011.JP)$ 、 $Kawasaki Heavy Industries (7012.JP)$ defense-related stocks such as are being sold off. Defense-related sectors are included in the 17 key investment areas promoted by the Takashi administration. These are also considered stocks related to Mr. Takashi, and buying momentum had been strengthening since the start of the year based on expectations that the Liberal Democratic Party would win the general election. Market participants remain bullish, stating that 'this is merely profit-taking due to a reaction from the recent rise' (major securities firm).
$IHI (7013.JP)$ has fallen more than 7%. Meanwhile, $Mitsubishi Heavy Industries (7011.JP)$ 、 $Kawasaki Heavy Industries (7012.JP)$ defense-related stocks such as are being sold off. Defense-related sectors are included in the 17 key investment areas promoted by the Takashi administration. These are also considered stocks related to Mr. Takashi, and buying momentum had been strengthening since the start of the year based on expectations that the Liberal Democratic Party would win the general election. Market participants remain bullish, stating that 'this is merely profit-taking due to a reaction from the recent rise' (major securities firm).
Similarly, wire-related stocks tied to Mr. Takashi have paused their upward movement today. Market participants point out that 'in particular, $Furukawa Electric (5801.JP)$ 's stock price has doubled since the start of the year, so there's no investor who wouldn't sell at this point. Stocks linked to the Takashi trade, which had been rising recently, are now under selling pressure' (ibid.). Furukawa Electric’s stock price, which had continuously hit the upper limit in previous sessions, remained flat during today’s session.
The Takashi administration aims to finalize a roadmap plan for each of the 17 key investment areas, including defense, artificial intelligence (AI), and semiconductors, by May. Among market participants, there is a view that 'if detailed guidelines for each of these 17 areas are released, related stocks could rise, potentially giving the entire Japanese stock market renewed upward momentum' (ibid.). (11:30 AM)
Surge in S-highs for artificial diamond-related stocks as Minister Akazawa of METI visits the US regarding $550 billion in US investment and financing
$EDP (7794.JP)$ 、 $Asahi Diamond Industrial (6140.JP)$ 、 $Sumiseki Holdings (1514.JP)$ 、 $Mipox (5381.JP)$ were both bought up to their upper limit, with $Tecnisco (2962.JP)$ standing out as it remains locked at its upper limit in Kai indications. Short-term funds have aggressively targeted stocks categorized as related to lab-grown diamonds, intensifying their focus.
Under the Japan-US tariff agreement, a $550 billion (approximately 84 trillion yen) investment and financing initiative towards the US includes plans for lab-grown diamond production in the US as one of the first candidate projects. In this context, Minister Akazawa of the Ministry of Economy, Trade and Industry is visiting the US from the 11th for a four-day schedule, where he is expected to discuss the realization of the first project with US Commerce Secretary Lutnick. Given that Minister Akazawa has expressed intentions to announce the first project at an early stage upon reaching an agreement with the US side, speculation around related stocks is growing. Besides lab-grown diamonds, other candidates listed include gas-fired power generation for data centers and harbor-related infrastructure projects.
$EDP (7794.JP)$ 、 $Asahi Diamond Industrial (6140.JP)$ 、 $Sumiseki Holdings (1514.JP)$ 、 $Mipox (5381.JP)$ were both bought up to their upper limit, with $Tecnisco (2962.JP)$ standing out as it remains locked at its upper limit in Kai indications. Short-term funds have aggressively targeted stocks categorized as related to lab-grown diamonds, intensifying their focus.
Under the Japan-US tariff agreement, a $550 billion (approximately 84 trillion yen) investment and financing initiative towards the US includes plans for lab-grown diamond production in the US as one of the first candidate projects. In this context, Minister Akazawa of the Ministry of Economy, Trade and Industry is visiting the US from the 11th for a four-day schedule, where he is expected to discuss the realization of the first project with US Commerce Secretary Lutnick. Given that Minister Akazawa has expressed intentions to announce the first project at an early stage upon reaching an agreement with the US side, speculation around related stocks is growing. Besides lab-grown diamonds, other candidates listed include gas-fired power generation for data centers and harbor-related infrastructure projects.
[Stocks to Watch] Yoko Engine Co. selling off in the afternoon = Downgrades in earnings and dividend forecasts seen as bearish factors
$Toyo Engineering (6330.JP)$ has entered the afternoon session, showing a sell-off at ¥5,510, down ¥640 from the previous trading day. Downgrades to earnings forecasts for the fiscal year ending March 2026 and the annual dividend for the same period are being viewed as negative factors.
$Toyo Engineering (6330.JP)$ has entered the afternoon session, showing a sell-off at ¥5,510, down ¥640 from the previous trading day. Downgrades to earnings forecasts for the fiscal year ending March 2026 and the annual dividend for the same period are being viewed as negative factors.
In today's morning announcement of financial results, the company revised its operating profit forecast for the fiscal year ending March 2026 downward from a projected surplus of ¥1.5 billion to a deficit of ¥20 billion, and net profit from a surplus of ¥5 billion to a deficit of ¥15 billion. This was due to reduced revenue projections for gas-fired power generation projects in Brazil and additional costs related to domestic biomass power generation projects. Additionally, following the downward revision in earnings outlook, the company announced it would cut the annual dividend for the same period from the planned ¥25 to zero. This will be the first time without dividends since the fiscal year ending March 2023, after three terms.
Market participants view this as 'a negative reaction to the downward revisions in earnings and dividend forecasts' (online brokerage), with sell orders increasing in the afternoon session, driving down indicative prices. (12:45 PM)
Sumitomo Metal Mining rose for the third consecutive day, briefly reaching above 11,000 yen, as concerns over the situation in Iran pushed gold prices higher
$Sumitomo Metal Mining (5713.JP)$ continues to rise sharply for the third consecutive day. The stock price temporarily rose above ¥11,000, hitting a new all-time high since listing. Gold futures for April delivery on the New York Mercantile Exchange (COMEX) surged $67.5 to $5,098.5 per troy ounce on the 11th. Heightened geopolitical concerns over Iran have led to risk-averse buying. Additionally, the upward revision of earnings forecasts for the fiscal year ending March 2026 and the dividend increase announced during the afternoon trading session on the 9th continue to be well-received.
$Sumitomo Metal Mining (5713.JP)$ continues to rise sharply for the third consecutive day. The stock price temporarily rose above ¥11,000, hitting a new all-time high since listing. Gold futures for April delivery on the New York Mercantile Exchange (COMEX) surged $67.5 to $5,098.5 per troy ounce on the 11th. Heightened geopolitical concerns over Iran have led to risk-averse buying. Additionally, the upward revision of earnings forecasts for the fiscal year ending March 2026 and the dividend increase announced during the afternoon trading session on the 9th continue to be well-received.
Kubota Pharmaceutical HD – Shares hit a temporary upper limit; Expectation of reduced net loss for the previous term, which was previously undetermined
$Kubota Pharmaceutical Holdings (4596.JP)$ hit an intraday upper limit. On the 10th, the company announced that its consolidated net loss forecast for the fiscal year ending December 2025, previously undetermined, would be a deficit of ¥660 million (compared to a loss of ¥1.33 billion in the previous period).
$Kubota Pharmaceutical Holdings (4596.JP)$ hit an intraday upper limit. On the 10th, the company announced that its consolidated net loss forecast for the fiscal year ending December 2025, previously undetermined, would be a deficit of ¥660 million (compared to a loss of ¥1.33 billion in the previous period).
The 'Kubota Glass' business is focusing on raising domestic awareness and expanding sales channels in overseas markets, particularly in Asia and Europe. For the fiscal year ending December 2025, the company plans to continue marketing efforts towards full-scale adoption and the development of next-generation models, with business revenue projected at ¥21 million. Although upfront investments and R&D expenses are included, non-operating income is expected to reduce the loss below the current net income compared to the operating profit.
Shiseido --- Sharp rebound, both actual results and forecasts exceed consensus
$Shiseido (4911.JP)$ rebounds significantly. The day before yesterday, the company announced its financial results for the fiscal year ending December 2025, with core operating profit reaching ¥44.5 billion, a year-on-year increase of 22.4%, surpassing market expectations of around ¥38 billion. For the fiscal year ending December 2026, the forecast stands at ¥69 billion, reflecting a 55.0% year-on-year increase, exceeding the consensus by approximately ¥10 billion. In addition to increased revenue and price hikes, structural reform benefits of about ¥25 billion seem to be factored in. Amid concerns over the impact of deteriorating Japan-China relations, better-than-expected results are driving a predominantly positive sentiment.
$Shiseido (4911.JP)$ rebounds significantly. The day before yesterday, the company announced its financial results for the fiscal year ending December 2025, with core operating profit reaching ¥44.5 billion, a year-on-year increase of 22.4%, surpassing market expectations of around ¥38 billion. For the fiscal year ending December 2026, the forecast stands at ¥69 billion, reflecting a 55.0% year-on-year increase, exceeding the consensus by approximately ¥10 billion. In addition to increased revenue and price hikes, structural reform benefits of about ¥25 billion seem to be factored in. Amid concerns over the impact of deteriorating Japan-China relations, better-than-expected results are driving a predominantly positive sentiment.
Ryowa Gasification --- Continues Significant Uptrend, Revises Earnings Forecast Upward Due to Strong BT Material Performance
$Mitsubishi Gas Chemical (4182.JP)$Shares have significantly continued their upward trend. The company announced its third-quarter earnings the day before yesterday. The operating profit for the October-December period was 12.7 billion yen, a year-on-year increase of 9.7%, which was in line with market expectations, marking a turnaround from a 25.5% decline in the first half. The full-year forecast has been revised upward from 44 billion yen to 47 billion yen, representing a 7.6% decrease compared to the previous year, slightly exceeding consensus. In addition to favorable currency effects due to yen depreciation, shipments of BT materials appear to be outperforming expectations, driven by increased demand related to AI servers.
$Mitsubishi Gas Chemical (4182.JP)$Shares have significantly continued their upward trend. The company announced its third-quarter earnings the day before yesterday. The operating profit for the October-December period was 12.7 billion yen, a year-on-year increase of 9.7%, which was in line with market expectations, marking a turnaround from a 25.5% decline in the first half. The full-year forecast has been revised upward from 44 billion yen to 47 billion yen, representing a 7.6% decrease compared to the previous year, slightly exceeding consensus. In addition to favorable currency effects due to yen depreciation, shipments of BT materials appear to be outperforming expectations, driven by increased demand related to AI servers.
[Top Moving Japanese Stocks]
The constituent stocks of the Nikkei 225 moved sideways, indicating that market sentiment remains unchanged. Amidst this, $Kubota (6326.JP)$Today it ranked at the top in terms of price increase rate, closing 18.23% higher at 3,242.0 yen.
The constituent stocks of the Nikkei 225 moved sideways, indicating that market sentiment remains unchanged. Amidst this, $Kubota (6326.JP)$Today it ranked at the top in terms of price increase rate, closing 18.23% higher at 3,242.0 yen.
On the other hand, the stock with the largest decline was $Sharp (6753.JP)$The closing price fell 12.48% to 675.4 yen.
-moomoo News DayThis stock August
Source: MINKABU, FISCO, Trader's Web, Stock Newspaper, Jiji Press
Source: MINKABU, FISCO, Trader's Web, Stock Newspaper, Jiji Press
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