[Nikkei Stock Average and TOPIX (Table)]

Nikkei Average; 36,546.04; +342.82

TOPIX; 2,574.05; +18.29

[Sector]: Mining, insurance, banking, transportation equipment, wholesale trade, etc. are the top decliners, while pharmaceuticals, precision instruments, and electric and gas industries rose. The turnover of the Tokyo Stock Exchange Prime includes Laser Tech <6920>, Mirrors HD <8897>, Kawasaki Shipbuilding <9107>, Dai-ichi Life HD <8750>, Recruit HD <6098>, Marubeni <8002>, Mitsui & Co. <8031>, Honda <7267>, SMC <6273>, INPEX <1605>, Nissan Motor <7201>, and Nomura <8604>, all of which fell. Meanwhile, Nitori Holdings <9843>, Rakuten Group <4755>, and Daiichi Sankyo <4568>, among others, have risen.

On the 18th, the Nikkei average rebounded for the first time in three days, starting trading at 36,546.04 yen, up 342.82 yen. On the previous day, the U.S. stock market was mixed. The Dow average closed at 41,606.18 dollars, down 15.90 dollars, and the Nasdaq closed at 17,628.06, up 35.93 points. After opening with expectations of a rate cut ahead of the Federal Open Market Committee (FOMC) meeting, the market rose. However, the market struggled due to caution and adjustments ahead of the FOMC. The Dow saw profit-taking selling from near its all-time high, resulting in a decline. The Nasdaq remained solidly supported by expectations of lower interest rates.

The Tokyo stock market started with buying. In the U.S. stock market yesterday, major indices were mixed with little movement, making it difficult to find clues. However, the forex market saw the yen weaken and the dollar strengthen, with 1 dollar = 141.80 yen, about 1.20 yen weaker and the dollar stronger compared to around 15:00 yesterday, which provided a sense of reassurance in the Tokyo market. In addition, the Nikkei average fell more than 600 yen in the previous consecutive declines until yesterday, making it easier for investors to buy on dips.

On the other hand, the results of the FOMC meeting and the press conference by Jerome Powell, Chairman of the Federal Reserve Board (FRB), will be announced early tomorrow morning Japan time, followed by the results of the Bank of Japan's Monetary Policy Meeting and a press conference by Governor Haruhiko Kuroda on the 20th. Some investors were cautious and refrained from active buying as they wanted to assess these events. In addition, a blast incident with a large number of casualties occurred in Lebanon in the Middle East. This increased the sense of caution towards geopolitical risks and affected investor sentiment, but buying prevailed at the market open.

In addition, the trade balance for August, which was announced before the start of trading, showed a deficit of 695.3 billion yen. The median estimate by private economists compiled by QUICK was a deficit of 1.3372 trillion yen. The machinery orders statistics for July, also announced before the start of trading, showed that the seasonally adjusted amount of orders for "excl. ships and electric power" (an leading indicator of private sector investment) decreased by 0.1% compared to the previous month. The median estimate compiled by QUICK was an increase of 0.4%. Hong Kong and South Korea markets are closed today.

In terms of sectors, insurance, oil & coal products, transportation equipment, securities, futures, nonferrous metals, etc. are among the top gainers, while air transportation, fisheries and agriculture, real estate, food, electrical utilities are among the top decliners.

In the prime section of the Tokyo Stock Exchange, Fujikura <5803>, Mercari <4385>, Toyota <7203>, Advantest <6857>, Sumitomo Forest <1911>, First Retail <9983>, Nidec <6594>, Sakura <3778>, Laser Tech <6920>, Shin-Etsu Chemical <4063>, Canon <7751>, Recruit HD <6098>, Kawasaki Ship <9107>, and others are rising. On the other hand, SoftBank <9434>, Nitori HD <9843>, Fanuc <6954>, and Mitsui Fudosan <8801> are declining.