[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 38,953.75; +28.12.

TOPIX; 2,697.60; -23.52.

Summary of the start of the afternoon session

The afternoon Nikkei average started slightly higher at 38,953.75 yen, up 28.12 yen from the previous day, nearly the same level as the morning close (38,964.65 yen). During lunchtime, the Nikkei 225 futures were in a range of 38,870 yen to 39,020 yen. The dollar-yen rate is around 145.00-10 yen, similar to around 9 a.m. The Asian market situation shows Shanghai Composite Index slightly lacking direction in positive territory but up about 1.2%, while the Hang Seng Index is performing strongly, rising significantly by about 3.1%.

The afternoon Nikkei average started slightly higher following the morning close. Some investors are refraining from active buying as they want to assess the results of the Liberal Democratic Party leadership election vote scheduled for the afternoon. On the other hand, the reassuring fact that the morning Nikkei average had a firm downside, along with the strong performance of the Hang Seng and Shanghai Composite indices, seems to be providing support to Tokyo market stock prices.

In sectors, machinery, precision instruments, and chemicals are among the top gainers in terms of percentage increase, while oil & coal products, mining, and banking are among the top decliners.

In the top trading value on the TSE Prime Market, Shiseido Company, Limited Sponsored ADR <4911>, Lasertec Corporation <6920>, Fanuc Corp <6954>, Daikin Industries <6367>, TOWA Corporation <6315>, Toyo Electric Corporation <8035>, SMC Corporation <6273>, Renesas Electronics Corporation <6723>, Disco Corp <6146>, and Kawasaki Heavy Industries <7012> are performing well. On the other hand, Recruit Holdings <6098>, INPEX Corporation <1605>, Takeda Pharmaceutical <4502>, Sumitomo Mitsui Financial Group <8316>, Mizuho Financial Group <8411>, Daiichi Sankyo Company <4568>, Mitsui O.S.K. Lines <9104>, Mitsubishi UFJ Financial Group <8306>, KDDI Corporation <9433>, and Honda Motor <7267> are declining.