I would like to pay attention to the following 3 points in late-day trading on the 7th.

・The Nikkei Average rebounded sharply and rose above the 25th line at one point due to strong US stocks

・The dollar and yen are strong, led by yen sales

・East Elec ＜8035＞ is the top contributor to price increases, and Fast Rite ＜9983＞ is in the same 2nd place

■The Nikkei Average rebounded sharply and rose above the 25 day line due to strong US stocks

The Nikkei Average rebounded sharply. The front-end transaction was closed at 38688.66 yen (estimated turnover of 830 million shares), which was 452.59 yen higher (+1.18%) compared to the previous business day.

The US stock market continued to rise on the 6th. The Dow average closed at 38852.27 dollars, which was 176.59 dollars higher (+ 0.46%), the NASDAQ was 192.92 points higher (+ 1.19%) at 16349.25, and the S&P 500 ended at 5180.74, which was 52.95 points higher (+ 1.03%). Expectations for interest rate cuts by the end of the year in response to the April employment statistics announced last weekend and the US Federal Open Market Committee (FOMC) results continued to be buying material, and then rose after being close. Long-term interest rates declined and the semiconductor NVIDIA once again recovered to the 900 dollar range and boosted high technology, and the market remained steady throughout the day. The increase was expanded until the end of the game, and it was over.

Since the US market had a steady trend during the consecutive holidays, the Tokyo market began trading with a buying advantage after the consecutive holidays. The increase in the Nikkei Average temporarily widened to 38863.14 yen in response to rising semiconductor stocks, etc. There was also a scene where it exceeded the 38773 yen level of the moving average on the 25th, but there was no strong movement such as asking for the 39,000 yen range all at once, and after one round of buying, it became a fight in the 38600 yen range.

In stocks adopted by the Nikkei Average, semiconductor-related products of DISCO ＜6146 ＞, screen HD ＜7735＞, lasertech ＜6920＞, Tokyo Electron ＜8035＞, and Advantest ＜6857＞ generally rose, and reports of some domestic securities were viewed as material, and Nomura ＜8604＞ was bought. In addition, ZOZO ＜3092＞, Isetan Mitsukoshi ＜3099＞, Fast Lite ＜9983＞, and Rakuten Group ＜4755＞ have risen.

Meanwhile, Mitsubishi Corporation ＜8058＞ continued to decline due to disgust with financial results before the consecutive holidays, and since it was reported that the Sony Group ＜6758＞ presented an acquisition proposal to US Paramount, the cost burden was viewed negatively and sold. Also, Daiichi Sankyo ＜4568＞, Sumitomo Pharma ＜4506＞, Mitsubishi Warehouse ＜9301＞, and Idemitsu Kosan ＜5019＞ declined.

By industry, while the securities/commodity futures trading business, other products, machinery, service industries, shipping industries, etc. rose, pharmaceuticals, rubber products, warehousing/transportation-related industries, electricity/gas industries, wholesale businesses, etc. declined.

The exchange rate is 154 yen 50 yen per dollar, and the depreciation of yen and appreciation of the dollar has progressed by about 30 yen from the time of donation. It has been observed that the government and the Bank of Japan carried out two yen buying interventions totaling 8 trillion yen from late April to early May. There was also a scene where the exchange rate entered the 151 yen range of 1 dollar after the US employment statistics were announced on 5/3, but a steady depreciation of the yen can be seen. The backstage is also likely to develop with an eye on exchange rates, but since Toyota is preparing to announce financial results for its own ＜7203＞ tomorrow 8th, it seems that the wait-and-see mood will intensify. The Nikkei Average and TOPIX in the back market will remain flat at the front closing price level. Also, financial results for Prima Ham ＜2281＞, Tokyo Railway ＜5445＞, etc. are scheduled to be announced later at 14:00.

■The dollar and yen are strong, led by yen sales

The dollar and yen were in a steady position in the Tokyo market on the morning of the 7th, and the value was rounded up from 153 yen 86 yen to 154 yen 56 yen. At the Tokyo market after the consecutive holidays, it temporarily stalled to the 153 yen level due to a sense of caution against the Japanese government's exchange intervention. However, yen sales, which received a significant increase in the Nikkei Stock Average, boosted major currencies.

The trading range up to this point has been from 153 yen 86 yen to 154 yen 56 sen for the dollar and yen, 165 yen 71 yen to 166 yen 39 sen for the euro and yen, and 1.0761 dollars to 1.0776 dollars for the euro dollar.

■Backstage check stocks

・4 brands, such as Seihyo ＜2872＞ and Broadband Tower ＜3776＞, are stop-high

*Includes temporary stop height (sign value)

・East Elec ＜8035＞ is the top contributor to price increases, and Fast Rite ＜9983＞ is in the same 2nd place

■Economic indicators and statements from key figures

[Economic indicators]

・Eurozone April Service Industry PMI Revised Value: 53.3 (forecast: 52.9, preliminary value: 52.9)

・Eurozone March Producer Price Index: -7.8% YoY (forecast: -7.7%)

[Remarks by VIPs]

・Chief Cabinet Secretary Hayashi

“Refrain from commenting on exchange intervention, including whether or not it has been implemented”

・Kanda Treasurer

“If there is excessive fluctuation or disorderly movement, the government will respond appropriately”

“Stable trends in line with fundamentals are important”

“There is no change in continuing close communication with national authorities”

＜Domestic＞

・Nothing in particular

＜Overseas＞

・ 13:30 Reserve Bank of Australia announces policy interest rate (forecast unchanged at 4.35%)

・ 14:45 Swiss unemployment rate for April (forecast: 2.3%, March: 2.4%)

・ 15:00 Germany/March trade balance (forecast: +22.4 billion euros, February: +21.4 billion euros)

・ 15:00 Germany/March manufacturing orders (month-on-month forecast: +0.5%, February: +0.2%)