In the afternoon trading on the 25th, we want to focus on the following three points.

Nikkei average rises for the 5th consecutive day, trading around 38,000 yen, but weighed down by the decline in financial stocks.

The dollar-yen is slightly firm, supported by buying back of the dollar.

Top contributors to the price increase are Advantest <6857> in first place, followed by Daikin <6367> in second place.

Nikkei average rises for the 5th consecutive day, trading around 38,000 yen, but weighed down by the decline in financial stocks.

The Nikkei average continued to rise for 5 days. It closed the morning session at 38,068.22 yen, up 127.63 yen (+0.34%) from the previous day, with an estimated volume of 0.76 billion shares traded.

The U.S. stock market continued to rise on the 24th. The Dow Jones Industrial Average closed at 42,208.22, up 83.57 points (+0.20%), the Nasdaq rose 100.25 points (+0.56%) to 18,074.52, and the S&P 500 closed at 5,732.93, up 14.36 points (+0.25%). Expectations of additional rate cuts by the end of the year and China's stimulus measures improved the outlook for the global economy, leading to a rise after the opening. However, optimism about the economy waned after the consumer confidence index for September fell below expectations, leading to selling. Profit-taking sales were observed from near record highs in the Dow, which struggled to grow. The Nasdaq saw strong buying interest in semiconductor stocks like Nvidia driven by AI demand, resulting in a steady rise and pushing up the market. The Dow recovered into positive territory and set new record highs for consecutive days towards the end of the session.

The rise in U.S. stocks and the yen's appreciation against the dollar, with the exchange rate at the early 143 yen/dollar range, led to a lack of direction in the Tokyo market. While the current Nikkei average has risen for 4 days, making it susceptible to profit-taking selling, semiconductor stocks were generally up, supported by rising U.S. tech stocks like Nvidia. The Nikkei average reached a standoff around the 38,000 yen level after a round of buying and selling.

In the Nikkei average constituent stocks, Shiseido <4911> was bought due to China's stimulus measures. Machinery-related stocks such as Yasukawa Electric <6506>, Fanuc <6954>, SMC <6273>, Okuma <6103>, Minebea Mitsumi <6479> were also bought. Additionally, part of the semiconductor stocks like Advantest <6857> and Renesas Electronics <6723> rose. Furthermore, companies like Daikin <6367>, Toto <5332>, Sumitomo Metal Mining <5713> were bought.

On the other hand, due to increased uncertainty regarding atopic drug candidates, Kose Kirin <4151> experienced a sharp decline. Additionally, the 10-year government bond yield, a key indicator of long-term interest rates, temporarily fell to 0.795% as of August 5, resulting in noticeable declines in financial stocks such as Resona Holdings <8308>, Tokio Marine Holdings <8766>, Sumitomo Mitsui Financial Group <8316>, MS&AD Insurance <8725>, Mitsubishi UFJ Financial Group <8306>. Companies like Terumo <4543>, Nissui <1332>, ZOZO <3092> also experienced declines.

By industry, categories like machinery, glass and stone products, transportation equipment, nonferrous metals, wholesale trade saw increases, while insurance, banking, aquatic/agricultural/forestry, precision instruments, and other products saw declines.

The Shanghai Composite Index and Hang Seng Index in Hong Kong showed strength due to China's stimulus measures, leading to a strong movement in China-related stocks. The afternoon session in the Tokyo market is expected to be driven by the trend in Chinese stocks more than the forex market. If stocks like Fanuc, which have lagged behind, rise further in the afternoon, they are likely to contribute to supporting the Nikkei average.

The dollar-yen is slightly firm, due to dollar buying.

In the morning of the 25th in the Tokyo market, the dollar-yen was slightly firm, rising from 142.90 yen to 143.49 yen. The risk aversion mood in the overseas market strengthened selling pressure on the dollar, but buying ahead of a bargain-hunting mood in the Asian market prevailed. Furthermore, the rise in Japanese stocks led to yen selling, which also pushed up the dollar.

The trading ranges so far are as follows: the dollar-yen ranges from 142.90 yen to 143.49 yen, the euro-yen ranges from 159.87 yen to 160.58 yen, and the euro-dollar ranges from 1.1178 dollars to 1.1196 dollars.

Check stocks for the afternoon session

Rancystem <3326>, Sind <4256>, and 4 other stocks hit the daily limit.

*Includes temporary stopper (indicated price)

Top contributors to price gains are Advantest <6857>, followed by Dai Kin <6367> in second place.

Economic indicators and remarks by important people

[Economic indicators]

Australia's August Consumer Price Index: +2.7% year-on-year (forecast: +2.7%, July: +3.5%).

[Important Person's Remarks]

Bowman, a member of the US Federal Reserve Board.

The inflation risk is greater than the labor market.

Core inflation remains uncomfortably above the 2% target.

We will continue to maintain a cautious approach to future rate cuts.

GDP is flexible, with no vulnerabilities in spending.

There is no clear weakness in the labor market.

Not applicable.

Not applicable.