In the morning trading of 6th, we want to pay attention to the following three points.
A stance that is conscious of autonomous rebound against a significant decline.
ITOCHU's Q1 operating profit increased by 13.9% to 190.5 billion yen.
In the morning, an NTT DATA G employee increased the core system design staff by 700 people, 1.9 times more than in fiscal 2026.
A stance that is conscious of autonomous rebound against a significant decline.
On the 6th, the Japanese stock market is likely to take a stance that is aware of the autonomous rebound against the recent significant decline while being unstable. On the 5th, the US market saw the Dow Jones Industrial Average fall by 1033 dollars and Nasdaq fall by 576 points. Sales continued due to concerns about recession following the July US employment statistics released last weekend. Investor sentiment has rapidly deteriorated due to the global stock market decline, and the decline in high-tech stocks that have led the market so far has been prominent. The Chicago Nikkei 225 futures settlement price was 33,190 yen, 1810 yen higher than Osaka. The exchange rate is moving at around 145.10 yen per dollar.
It is likely to start with buying leading form from the Sycago futures. Yesterday's Nikkei average stock price became a record decline exceeding the decline at the time of Black Monday. The US market at the beginning of the week was also greatly down, and although the movement of the world stock market decline continues, it is likely that there will be moves aiming for autonomous rebound against the record decline. Yesterday's trading volume on the Tokyo prime market was swelling to around 4 billion shares, and there is a possibility that selling climax will be conscious. In the foreign exchange market, although it had entered 1 dollar = 141 yen range on the previous day, it is also a bit comforting that the rapid appreciation of the yen has subsided and they are currently around 1 dollar = 145 yen per dollar.
In the United States, the VIX index was seen sharp uplifts up to 65.73 at one point. Although the closing price was 38.57, it is higher than 20, which is easy to move towards risk aversion. It is considered that rough price movements will continue until clear bottoming is seen, and it is likely to watch out for the strengthening of commercial hedge support. However, there is also a possibility that selling climax will be conscious even in the United States, and it seems that the expectation of emergency interest rate cuts is increasing ahead of the Federal Open Market Committee (FOMC) in September.
Although optimism is difficult to maintain, yesterday saw a lot of selling off of megabank and major trading companies' stocks, leading to a rapid acceleration of the trend to compress holdings. This makes it easier to view the decline as irregular, and it's probably best to hope for a corrective rebound. Although many stocks were sold off despite good earnings reports, there is likely to be a renewed focus on earnings evaluations. In addition, the following companies were in the spotlight and announced their earnings after the close of business yesterday: ITOCHU <8001>, ORIX <8591>, Nippon Steel <5631>, GS Yuasa <6674>, UBE <4208>, Kikkoman <2801>, Alfredo's <2784>, Tsumura <4540>, Nagase Sangyo <8012>, Nippon Titanium <5727>, Hitachi Zot <7004>, Okuma <6103>, etc.
ITOCHU's Q1 operating profit increased by 13.9% to 190.5 billion yen.
ITOCHU <8001> announced that in the first quarter of the fiscal year ending March 2025, revenue increased 7.5% YoY to 3.598918 trillion yen, and operating profit increased 13.9% YoY to 190.539 billion yen. In addition, it has decided to buy back 28 million shares (about 1.9% of issued shares). It also announced that it will conduct a tender offer (TOB) for Descente <8114> and Takiron Seiyaku <4215> to make them wholly owned subsidiaries.
Materials of concern in the morning session
・1 dollar = 143.80-90 yen
・Chicago Nikkei futures rose (33,190, Osaka +1810)
Long-term US interest rates fell.
Expectations for inflation to ease in the US.
Active share buybacks
Request for improvement in corporate value by the Tokyo Stock Exchange.
NTT DATA G <9613> increased its core system design staff by 700 people, 1.9 times more than in fiscal 2026.
Freund Industries <6312> invests over 5 billion yen in a new factory and doubles production of additives to 2.5 times.
Yamato Holdings <9064> supports Osaka tourism with new store and temporary large baggage storage.
The derailment accident of JR Tokai <9022>'s maintenance vehicle was caused by decreased braking force.
ITOCHU <8001> aims to make Descente <8114> a wholly-owned subsidiary through a TOB at 4,350 yen per share.
Mitsubishi Electric Corp. unsponsored ADR <6503>: Concerns about leaks from Mitsubishi Electric Home Appliances to 2.31 million customers.
Asahi Soft Drinks <2502> installs new bottling line for PET bottle beverages at Akashi factory.
Toyota Motor <7203> and government explore sustainability, implement hydrogen vehicles in Kyushu through CJPT.
Mitsubishi Motors <7211> will increase the capacity and power output of PHV batteries for new SUVs this fall.
Sodick <6143> refreshes laminated 3D printer for the first time in 10 years.
The president of Kurimoto Iron Works <5602> has won a settlement construction contract for water pipes.
Hitachi Shipbuilding <7004> and Kashima develop floating foundation for offshore wind power and plan to mass-produce it.
Mitsubishi Heavy Industries <7011> receives orders for gas and steam turbines from Malaysia.
Tsukishima Holdings <6332>, JFE Aqua Sol, and three other companies are promoting the recovery of nutrient phosphorus and its reuse as fertilizer.
NTT <9432> has received 220 applications from cooperative partners for its large-scale language model "Tzumi".
Icom <6820> automates the screw tightening and inspection process for fixed wireless radios, increasing production capacity by 30%.
Hitachi <6501> has received a 110 billion yen order in the United States and will deliver 200 railroad cars starting in 2029.
Dai Nippon Printing <7912> has doubled production capacity for sealing materials through facility enhancement in Fukushima.
SoftBank <9434> has improved the answer accuracy of its generated AI and enhanced data search.
Casio Computer <6952> forms a capital alliance with an AI start-up.
Nippon Sheet Glass <5202> expands its high value-added business domain under the leadership of President Munehiro Hosonuma.
Nishimatsu Construction <1820> automatically estimates the behavior of buildings with high precision for earthquake risk assessment.
Nippon Road <1884> develops a mixture of biochar and CO2-fixing material for road paving with Shimizu Construction.
Zeon Corporation <4205> establishes a synthetic rubber technical support base in India.
Mitsui Chemicals <4183> delays the resumption of ethylene production at its Osaka plant.
Mitsubishi Estate <8802> decides to open a luxury hotel "Andaz" in a large-scale mixed development project in Indonesia.
☆ Schedule of events in the morning session
08:30 June monthly labor statistics and total cash earnings (expected change from previous year: +2.4%, May: +2.0%).
08:30 June household spending (expected change from previous year: -0.8%, May: -1.8%).
Not applicable.