Japanese stocks were expected to remain firm at the start of the week following the rebound in U.S. stocks, but the Nikkei Average ended lower. SoftBank Group's earnings, Lasertec's outlook, the U.S. employment report and the market reaction, upcoming earnings announcements, and the Bank of Japan's release of its meeting summary were among the topics in focus.
In the Tokyo market on 7 August, the Nikkei Average closed at ¥65,606.71, down ¥76.55 from the previous day. The index edged higher in the morning, but selling subsequently prevailed and it declined toward the close. SoftBank Group's net profit for April–June fell 18% year on year to ¥347.3 billion, while weak investment gains at the SVF also weighed on the stock. Lasertec came under selling pressure after its net profit forecast for the current fiscal year fell below market expectations.
In the U.S. market, the Dow Jones Industrial Average rebounded on 7 August, closing at $54,036.93, up $151.83 from the previous day. The July U.S. employment report showed that nonfarm payrolls fell by 23,000 from the previous month, below market expectations for an increase of 83,000. Views spread that expectations for an early rate hike by the FRB had receded, strengthening risk appetite.
The Nasdaq Composite and S&P 500 both rebounded for the first time in 3 sessions. The Nikkei Average was also expected to remain firm at the start of the week, but buying momentum may be restrained as profit-taking becomes more likely with the market closed on 11 August for Mountain Day. Rakuten Group and Sanrio are scheduled to announce their earnings on the 10th, while the Bank of Japan is scheduled to release the “Summary of Opinions” from its July meeting.