Tokyo Market Summary: Nikkei sharply rebounds; Capcom plunges on sense that favorable factors for entertainment stocks have run their course; Kioxia soars, price target raised; Shin-Etsu Chemical up 5% on positive view of 'investment restraint'; Honda to reverse-import two US-made models from the second half of 2026

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The stock market overview for today is as follows. Thank you for your attention.

Market Overview

The Nikkei average on March 5 rebounded sharply after four days. The closing price was 55,278 yen, up 1,032 yen. Following gains in U.S. equities, it opened more than 900 yen higher. Many stocks started with a strong buying tone, and soon the rise exceeded 2,000 yen. When the upward move expanded beyond 2,300 yen and the index climbed above 56,600 yen, buying slowed down, leading to a decline around 10 a.m. There was a moment when the gain shrank to 664 yen, but it recovered when it dipped below 55,000 yen around 1 p.m., ending with a four-digit gain.

The trading volume on the Tokyo Stock Exchange Prime Market was approximately 9.06 trillion yen. By sector, mining, petroleum & coal, and banking rose, while air transport, miscellaneous products, and foodstuffs fell. A company announced investments in fusion-related startups. $Mitsui (8031.JP)$ Shares surged. On the other hand, forecasts for a final net profit decline this term were presented. $Sekisui House (1928.JP)$ Shares were sold off.

[Today's Buy/Sell Dominance Situation]
In the TSE Prime Market on March 5, buy-dominant turnover amounted to 1.36 trillion yen, while sell-dominant turnover reached 1.48 trillion yen.

Top News
[Stocks to Watch] Capcom plunges – Sense of exhaustion of positive factors weighs on entertainment stocks
$Capcom (9697.JP)$ Capcom shares plummeted significantly. The decline in the morning session exceeded 7% from the previous day, and it remained at the top of the list for the largest drop among Prime Market stocks in the afternoon session. On the 4th, Capcom announced that the latest release in the Resident Evil series, which launched in late February, had surpassed 5 million units in sales. However, the stock reacted as if the positive news had been fully priced in, according to a major brokerage.

The game reached 5 million units within less than a week of its February 27 release, and it was noted that 'the sales pace is not slow' (major brokerage). However, due to high expectations beforehand, the market seemed to interpret the 5 million sales figure as expected and already factored in (same brokerage).

On this day, $Nintendo (7974.JP)$や$Koei Tecmo Holdings (3635.JP)$ 、 $NEXON (3659.JP)$ 、 $Square Enix Holdings (9684.JP)$ 、 $GungHo Online Entertainment (3765.JP)$ 、 $Oriental Land (4661.JP)$ A segment of gaming and entertainment-related stocks are showing weakness. There were comments suggesting, 'Entertainment-related stocks showed resilience or rose against the trend yesterday, so return-to-the-mean selling might be occurring' (mid-sized brokerage). (2:54 PM)

[Stock in Focus] Kioxia HD Surges as Foreign Brokerage Initiates Coverage with Target Price of ¥40,800
$Kioxia Holdings (285A.JP)$ Kioxia HD continued to surge significantly into the afternoon session. In the morning session, there were moments when the stock price climbed by ¥2,000 from the previous day to reach ¥21,245. Currently, it's still up by about 8%. The stock price has been driven up by BNP Paribas Securities initiating coverage with an 'Outperform' rating and a target price of ¥40,800.

Market participants commented, 'The bullish rating, along with SanDisk, which has high correlation with Kioxia HD, surging over 5% on the U.S. market the previous day, also contributed to the upward push' (major brokerage). (2:50 PM)

[Stock in Focus] Shin-Etsu Chemical Rises Over 5% = Investment Plan Praised as 'Restrained'
$Shin-Etsu Chemical (4063.JP)$ Shin-Etsu Chemical's stock has maintained a significant rise of more than 5% from the previous day into the afternoon session. Following the announcement of a $3.4 billion investment in vinyl chloride operations in the U.S., buying interest spread as the amount was considered 'relatively restrained' (major brokerage).

Buying led the way early in the morning following a report by the Nikkei newspaper, with the stock rising to ¥6,426, up ¥492 at one point. Although gains moderated afterward, the stock has continued to trade firmly into the afternoon session.

Given that the U.S. PVC investment had been disclosed in advance, there was no sense of surprise, although some had anticipated a larger amount (major brokerage cited earlier). Regarding the controlled investment amount, comments such as 'This is impressive management typical of Shin-Etsu Chemical' (same source) were heard. (3:04 PM)

Nippon Gear's stock surged to the daily limit, amid reports that nuclear plant construction is a leading candidate for the second wave of U.S.-targeted investments, triggering speculation in related stocks.
$Nippon Gear (6356.JP)$ The stock price rose by 300 yen from the previous trading day to 1,649 yen, hitting the upper limit and reaching a new high since its listing. $OKANO VALVE MFG (6492.JP)$や$TVE (6466.JP)$ also hit the upper limit. On April 4th after the market closed, Reuters reported that 'Japan and the US governments are in urgent discussions regarding a second wave of investment projects based on tariff agreements ahead of the mid-March summit.' The report mentioned that projects involving Japanese companies in reactor construction are being adjusted as strong candidates. Previously, next-generation nuclear power plants were considered strong contenders for the second wave; however, following the report, speculation has resurfaced regarding potential order impacts on stocks related to nuclear power, driving investor interest. $KIMURA CHEMICAL PLANTS (6378.JP)$や$Sukegawa Electric (7711.JP)$ is also seeing a significant rise.

Allied Akki sharply rebounded and announced the launch of a new operational solution aimed at optimizing ad operations in collaboration with Meta.
$Allied Architects (6081.JP)$ has rebounded sharply. Earlier today, the company announced a partnership with Facebook Japan (hereinafter Meta Platforms), the Japanese subsidiary of Meta Platforms <META>, to launch a new operational solution called 'Creative Feedback Loop for Meta,' aimed at optimizing Meta ad operations, which is being viewed as positive news.

This solution is characterized by implementing Meta's recommended operational methods while utilizing the AI analytical technology of Allied Arts' data analytics platform 'Kaname.ax' to achieve highly reproducible operations based on data and sustainable expansion of advertising results. Currently, proof-of-concept (PoC) trials are underway with multiple client companies, and full-scale provision is planned within 2026.

Honda to 're-import' two U.S.-produced models starting in the second half of 2026
$Honda Motor (7267.JP)$ announced on the 5th that it will 're-import' two luxury brand models produced in the U.S. to Japan, set to go on sale in the second half of 2026. This move aims to reduce the U.S.-Japan trade deficit criticized by the Trump administration. Honda plans to utilize a newly established certification system by the Ministry of Land, Infrastructure, and Transport, which simplifies safety inspections for imported vehicles.

The re-imported models include the luxury sedan 'Acura Integra Type S' and the large sports utility vehicle (SUV) 'Passport TrailSport Elite.' By introducing these unique performance and design-oriented models not commonly available in the domestic lineup, Honda seeks to expand its product portfolio.

Among other domestic automakers, Toyota Motor has announced plans to re-import three models, including the sedan 'Camry,' from the U.S., while Nissan Motor is also considering similar moves. (End)

Sekisui House - Declines deepen in the afternoon session; forecasts a 6% drop in net profit for this period, after a 7% increase last period.
$Sekisui House (1928.JP)$ The stock fell further in the afternoon session. At 12 PM on the 5th, the company announced its forecast for the full fiscal year ending March 2027, projecting a consolidated net profit of 218 billion yen (a 6.1% decrease from the previous term) and an annual dividend forecast of 145 yen (compared to 144 yen in the previous term). The market consensus was 240.6 billion yen.

The company also announced the formulation of its mid-term management plan (from fiscal year 2027 to 2029). For the final year, it aims for a net profit of 300 billion yen and an ROE in the high teens. The shareholder return policy is set at a dividend payout ratio of over 40%, with a minimum dividend of 145 yen per share. Domestically, the company aims for sustainable growth by offering one-stop solutions centered around 'housing.' Overseas, it seeks leapfrog growth in the U.S. single-family home business.

For the fiscal year ended March 2026, the consolidated net profit was 232.1 billion yen (a 6.6% increase from the previous term). The company’s forecast was 232 billion yen.

[Top Moving Japanese Stocks]
The constituent stocks of the Nikkei 225 generally rose, reflecting improved market sentiment. Amid this...$Inpex (1605.JP)$The stock ranked top in today's price increase rate, closing 7.46% higher at 4,161.0 yen.

On the other hand, the stock with the largest decline was$Nitori Holdings (9843.JP)$The closing price fell 3.59% to 2,819.0 yen.

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-moomoo News Japanese Stocks August

Source: MINKABU, FISCO, Trader's Web, Stock Newspaper, Jiji Press

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