[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 38,504.58; +585.03

TOPIX; 2,680.67; +34.73

Summary of the start of the afternoon session

In the afternoon, the Nikkei average started slightly expanding its gains from the morning closing (38,476.33 yen) to open at 38,504.58 yen, up 585.03 yen from the previous day. During the lunchtime, Nikkei 225 futures traded in the range of 38,440 - 38,570 yen, showing a strong consolidating pattern. The dollar-yen exchange rate maintained a high level with 1 dollar = 144.10-20 yen, about 40 sen lower yen and higher dollar levels from around 9:00 am. Asian markets were closed in Shanghai and Hong Kong.

In the afternoon session of the Tokyo market, trading started with a slight buying trend compared to the morning session. Following a significant drop of over 1,900 yen in the Nikkei average yesterday, there appears to be active bargain hunting following the morning session. On the other hand, some investors are holding back on active buying as they want to confirm the economic policies of Fumio Kishida, who is expected to be nominated as the new Prime Minister today by the Liberal Democratic Party.

In the sectors, machinery, securities and commodity futures, and wholesale trade are among the top gainers, while air transportation, land transportation, and pulp & paper are declining.

In the trading value ranking of the Tokyo Stock Exchange Prime Market, Mitsui E&S <7003>, Kawasaki Heavy Industries <7012>, Mitsubishi Heavy Industries <7011>, IHI <7013>, Sakura <3778>, Marunouchi Capital <3498>, TDK <6762>, Rohm <6963>, Mitsukoshi Isetan <3099>, and Disco <6146> are performing well. On the other hand, Nitori Holdings <9843> and Mercari <4385> are showing declines.