TOPIX Continues to Rise, Favorable Yen Depreciation and Solid Corporate Earnings-Trading Companies and Steel High – Bloomberg

TOPIX continues to grow on the Tokyo stock market. In the foreign exchange market, the yen depreciated to the high 148 yen level to the US dollar at one point, and favorable buying is prevailing. Buyers gather in good performance stocks, and Komatsu Seisakusho and Japan Tobacco Industries, which have revised their performance plans upwards, stand out. Trading companies and steel stocks are also rising. However, there was a scene where the Nikkei Stock Average turned downward. Electronic parts are on sale.

TOPIX is 4.08 points (0.2%) higher than the previous day at 1933.51 – as of 10:45 am The Nikkei Stock Average climbed 6.30 yen (0.02%) to 27,593.76 yen.

Perspectives of market participants

Tetsuo Seshita, multi-manager investment manager at Saison Asset Management

• The reason why Japanese stocks are holding firm is probably that expectations are rising that corporate earnings will work somewhat positively in response to the yen’s depreciation in the foreign exchange market.
• However, with the release of the US ISM manufacturing index, which had an impact on the market last month, scheduled for this evening in Japan time, it is becoming difficult for investors to take action.

Hideyuki Ishiguro Senior Strategist at Nomura Asset Management

• With the depreciation of the yen in the foreign exchange market as a tailwind, it is likely that buyers who feel favorably about the favorable performance of domestic companies will prevail. Earnings per share (EPS) growth in Japan surpasses US in July-September quarter
• If Toyota, which announces financial results today, benefits from the weaker yen and announces results that exceed the previous forecast, it will lead to an improvement in investor sentiment.

TSE 33 industries

top rate of increase	wholesale, grocery, steel, mining
High drop rate	Metal products, shipping, electricity and gas

background

• Toyota Earnings Revised Upwards Due to Historic Yen Depreciation – Production Outlook Will Be Focused
  • Komatsu: Upward revision of full-year operating profit forecast, exceeding market forecast
  • JT: Full-year operating profit forecast upward revision, exceeds market forecast
• The dollar/yen exchange rate remained in the low 148 yen range against the dollar, and the closing price of Japanese stocks on the previous business day was 147.92.
• Overseas market conditions on the previous dayhereplease look at