The Nikkei Average continued to rise significantly for the third consecutive day. It closed the morning session at 37,935.58 yen (+780.25 yen or +2.10%) with an approximate trading volume of 0.8 billion shares.

The U.S. stock market rebounded significantly on the 19th. The Dow Jones Industrial Average closed at 42,025.19 yen, up 522.09 dollars or 1.26%, the Nasdaq closed at 18,013.98, up 440.68 points or 2.51%, and the S&P500 closed at 5,713.64, up 95.38 points or 1.70%. Weekly initial jobless claims reached a 4-month low, easing concerns about labor market slowdown, leading to an increase in market opening. In addition, expectations of a significant interest rate cut by the Federal Open Market Committee (FOMC) contributed to the belief that the economy will experience a soft landing without a sharp decline, further fueling the rise. The technology sector also provided strong support to the market, leading to an expanded gain in the latter half of the session.

The Tokyo market started trading with a buying bias following the significant rebound in U.S. stocks. Semiconductor stocks such as Tokyo Electron (<8035>) stood out due to the rise in U.S. high-tech stocks, and the Nikkei Average started at around 37,700 yen and expanded its gain until just before 38,000 yen. It ended the morning session above the 25-day moving average (around 37,450 yen level) and the 200-day moving average (around 37,620 yen level).

Among the stocks selected for the Nikkei Average, many semiconductor stocks such as Tokyo Electron, Socionext (<6526>), Laser Tech (<6920>), and Renesas Electronics (<6723>) were bought. Furthermore, Resonac Holdings (<4004>) was bought after announcing a price increase for graphite electrodes, and speculative buying was directed towards Tokai Carbon (<5301>). In addition, Kawasaki Heavy Industries (<7012>), Murata Manufacturing (<6981>), Taiyo Yuden (<6976>), Furukawa Electric (<5801>), SUMCO (<3436>), and Dentsu Group (<4324>) also rose.

On the other hand, private railway stocks such as Keisei Electric Railway (<9009>), Odakyu Electric Railway (<9007>), and Tobu Railway (<9001>) were generally weak, and retail-related stocks such as Aeon (<8267>), Marui Group (<8252>), and J. Front Retailing (<3086>) were also low. In addition, ZOZO (<3092>), Sumitomo Dainippon Pharma (<4506>), and Kyowa Kirin (<4151>) declined.

In terms of industry sectors, petroleum and coal products, electrical equipment, nonferrous metals, glass and stone products, and banking industry all rose, while land transportation industry and electric and gas industry were the only two sectors that declined.

During lunchtime, the exchange rate is hovering around 142.50 yen per dollar. At 11:40 a.m., the outcome of the Bank of Japan's monetary policy meeting currently taking place has not been conveyed, but the market consensus is to expect a 'maintenance of the current monetary policy', so after the announcement, the movements in the foreign exchange and stock markets are expected to be limited. Market attention is shifting towards the press conference by BoJ Governor Haruhiko Kuroda starting at 3:30 p.m., and there are no significant movements expected in the afternoon session of the Tokyo market. The Nikkei average is likely to remain in a consolidation phase at high levels.