Stock Talk: Market Outlook for the 18th [What 8179 and Royal HD indicate as the next move; Vaccination rates will not decline]
21 year5 month17 day week,18 day Tokyo stock market outlook in text.
【Today's live URL is listed at the bottom of this email.】
Bridgestone1～3 months net income3.6x:Nikkei(nikkei.com)
【This morning's five】Carefully selected news to read on the first day of work- Bloomberg
Machine tool orders2.2times4 months foreign demand,2 years7 months high since:Nikkei(nikkei.com)
Today's Tokyo stock market seems to be in a state of stalemate for now, wondering if it can grab a catalyst from domestic and international factors.1 day, likely to be
Yesterday, more than the Topix index movements, the popular stocks on TSE Mothers and JASDAQ were near collapse, with positions being reorganized.
Now the Nikkei stock average is pulling back, dropping about 10% from February's high, contrasting with the NY Dow Jones Industrial Average's movements.
Even the U.S. stock market shows signs of turbulence, and the previously leading stocks are quietly fading, with Apple now weighing on the Dow.
To be clear, in the West, as vaccination progresses to return to daily life, they are trying to break free from the pandemic-era lifestyle.
Individual money supplying the market is starting to reverse flow, likely wanting to inject into the real economy by cashing out.
Handouts are being halted in some U.S. states, implicitly forcing people back into the labor market from a coronavirus-era complacency.
In such a situation, stocks that prospered during the pandemic are mocked as a corona bubble, and the Dow’s rising names include construction machinery leader Caterpillar and major oil distributor Chevron.
In the Tokyo market, will there be buy-in for similar types of stocks? Based on the same image, around 6301 Komatsu and 1605 INPEX are the targets.
As for TSE Mothers and JASDAQ, yesterday's rebound is expected, and attention is on whether fresh buying will come, though sustainability may be limited.
However, there are still some signs; yesterday, JR Central (9022) rose, and JAL (9201) and HIS (9603) moved up, hinting at potential for gains.
With activity halted by the pandemic, buying opportunities may arise in stocks that are poised to return to pre-pandemic economic activity.
Although vaccination rates continue to rise with no signs of slowing, the market is reflecting the steady progress rather than swiftness.
Such signs were clearly seen in the market, with Premier Anti-Aging (4934) rising.
Even in results that are less than stellar, such as Royal HD (8179), rising vaccination rates suggest a potential exit from the worst period, making it a stock to watch.
There may not be leaders driving the index, but with vaccination progress supporting even a 0.1% advance, focus should be on recovery in the restaurant, transportation, and interpersonal-service industries.
Beyond steel and other cyclical plays, there are opportunities in stocks that rely on human interaction, and these may rise in tandem with vaccination rates; this is a trend worth watching.
I want to monitor mid- to small-cap, high-performing electronics components, as well as stocks that will move higher with asset purchases tapering in monetary policy, forming a rising curve.