The Nikkei Average continues to rise. The front-end transaction was closed at 39135.91 yen (estimated turnover 800 million shares), which was 66.23 yen higher (+0.17%) compared to the previous day.
The US stock market on the 20th was mixed. The Dow average closed at 39806.77 dollars (-0.49%) depreciated by 196.82 dollars (-0.49%), the Nasdaq closed at 16794.88, 108.91 points higher (+ 0.65%), and the S&P 500 closed at 5308.13, 4.86 points higher (+ 0.09%). Expectations for interest rate cuts have receded, and things have been mixed since they got close. Since several senior US Federal Reserve (Fed) officials showed a cautious attitude, such as “there is still no confidence that inflation will reach the 2% target sustainably, and interest rates will be maintained for the time being,” the rise in long-term interest rates was suppressed. The Dow was pushed by profit-taking sales from around 40,000 dollars, which is a milestone, and turned into a decline, and the decline widened towards the end of the game. Meanwhile, the rise in semiconductor NVIDIA, which is scheduled to announce quarterly financial results this week, led the NASDAQ to rise and hit a record high.
Since the NASDAQ rose in various ways for US stocks, the Tokyo market began trading with a slight buying advantage. Although there was a scene where the Nikkei Average increased to 39346.15 yen, there was a strong wait-and-see mood in the market as a whole before financial results were announced by US semiconductor giant NVIDIA, and aggressive trading was refrained. The trading price on the prime market remained at around 2 trillion yen, and both rising and falling stocks developed with little sense of direction.
Among stocks adopted by the Nikkei Average, MS&AD ＜8725＞ skyrocketed due to good financial results and large-scale shareholder return measures, etc. being viewed as materials, and updated the high price since listing. Also, Fujikura (5803), which was reported to consistently produce small-diameter high-density optical cables in the US, also updated its high price since listing. In addition, Tokio Marine ＜8766＞, Mitsukoshi Isetan D ＜3099＞, Disco ＜6146＞, Murata Seisakusho (6981), and Ebara Seisakusho (6361) were bought.
Meanwhile, Sompo Holdings (8630), which was displeased with the financial results forecast for the current fiscal year, fell and hit a year-to-date low, and T&D Holdings (8795) is not even there. Additionally, Sumitomo Pharma ＜4506＞, Daikin Industries ＜6367＞, Sumitomo Chemical ＜4005＞, and Socionext ＜6526＞ were sold.
By industry, insurance, petroleum and coal products, electric/gas, shipping, non-ferrous metals, etc. rose, while mining, banking, real estate, precision equipment, securities and commodity futures trading businesses declined.
In the morning bond market, the yield on new 10-year government bonds was 0.980%, 0.005% higher than the previous day, the highest in 11 years since 2013/5. As long-term interest rates rose in the US market last night, sales spread to domestic long-term bonds. Interest rate expectations have intensified in the bond market since the Bank of Japan observes the normalization of monetary policy. Since 1.000%, which is a psychological milestone, is approaching, it is assumed that the mood to determine the impact on the exchange market and stock market will also intensify. As for the backstage, NVIDIA's financial results are being announced on the 22nd (before dawn on the 23rd Japan time), so it seems that both the Nikkei Average and TOPIX will be at odds.