The Nikkei Average continues to fall. The forward market transaction was closed at 38719.35 yen (estimated volume of 760 million shares), which was 227.58 yen lower (-0.58%) compared to the previous day.
The US stock market rose on the 21st. The Dow average closed at 39872.99 dollars, which was 66.22 dollars higher (+ 0.17%), the NASDAQ was 16832.63, which was 37.75 points higher (+ 0.22%), and the S&P 500 closed at 5321.41, which was 13.28 points higher (+ 0.25%). Since senior US Federal Reserve (Fed) officials repeated the attitude of leaving policy interest rates unchanged for the time being, they fell after being close. At the same time, the market price began to rise due to the view that there was little possibility of interest rate hikes and purchases that favored retail settlement. High-tech was supported by a decline in long-term interest rates, and it was bought by expectations for semiconductor NVIDIA financial results, and the market price increase widened towards the end of the market, and the NASDAQ ended at a record high.
Although US stocks rose, the Philadelphia Semiconductor Stock Index (SOX Index) fell, and the Tokyo market began trading with a selling advantage. Since semiconductor stocks were weak in value, the Nikkei Average remained in the negative zone compared to the previous day. Since NVIDIA financial results are about to be announced before dawn tomorrow, the wait-and-see mood was strong, and the Prime market trading price fell below 2 trillion yen.
Among stocks adopted by the Nikkei Average, Sumitomo Pharma ＜4506＞, which has continued to be on a downward trend since financial results were announced, has updated year-to-date lows every day, and semiconductor-related aspects such as Shin-Etsu ＜4063＞ and Tokyo Electron ＜8035＞ are also weak. In addition, Ebara Seisakusho (6361), Chugai Pharmaceutical (4519), Kubota (6326), and Mitsubishi Corporation (8058) were sold.
Meanwhile, positive reports from domestic securities companies were viewed as material, and in addition, Nidec (6594) and Kobe Steel (5406) were bought, and Fukuoka Financial Group (8354) and Concordia Financial Group (7186) also rose due to recent increases in interest rates, etc. Additionally, Sharp ＜6753＞, Nexon ＜3659＞, and Isetan Mitsukoshi ＜3099＞ were bought.
By industry, while shipping, real estate, electricity/gas, mining, textile products, etc. declined, only 5 sectors rose: securities/commodity futures trading, insurance, information/communication, and other finance and warehousing/transportation-related businesses.
In the domestic bond market in the morning, the yield on new 10-year government bonds, which are indicators of long-term interest rates, temporarily rose to 0.985% (price fell), and hit a high level for the first time in 11 years since 2013/5. Although long-term US interest rates fell the day before, it seems that speculation that the Bank of Japan will soon reduce government bond purchases is putting upward pressure on them. While bank stocks, mainly regional banks, are being bought slightly in the stock market due to rising interest rates, real estate is weak. So far, the impact on the Nikkei Average seems limited, but I would like to note that there is a possibility that the exchange rate will fluctuate against the appreciation of the yen. The backstage of the Tokyo market is limited to position adjustments ahead of tomorrow's NVIDIA financial results, and both the Nikkei Average and TOPIX are likely to move slightly.