[Nikkei Stock Average and TOPIX (Table)]
Nikkei average; 38,594.73; +42.67
TOPIX; 2,687.94; +4.23
[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 4th, the Nikkei average started trading higher at 38,594.73 yen, up 42.67 yen. The US stock market on the previous day 3rd closed lower. The Dow Jones fell by 184.93 points to 42,011.59, and the Nasdaq closed at 17,918.48, down 6.64 points. Concerns about the worsening situation in the Middle East weighed on the market, leading to a decline after the opening. The ISM Non-Manufacturing Business Conditions Index rose higher than expected, temporarily recovering into positive territory due to improved economic outlook. However, President Biden's suggestion of a possible oil facility attack following Iran's retaliation against Israel led to increased caution about high oil prices and geopolitical risks, accelerating selling pressure and causing another decline. Nvidia's rise in semiconductor stocks supported the Nasdaq, but profit-taking sales intensified towards the end of the day, as market participants awaited the employment statistics announcement on the 4th.
Buying dominated the Tokyo stock market today. While the major 3 indices (Dow Jones Average, Nasdaq Composite Index, S&P 500) fell in the US stock market yesterday, the Philadelphia Semiconductor Index (SOX Index) continued to rise, providing support to semiconductor-related stocks and other factors in the Tokyo market. The stability in the foreign exchange market led to a sense of security in the stock market. On the other hand, the decline of the major 3 indices in the US stock market yesterday weighed on the Tokyo market. In addition to ongoing concerns over geopolitical risks in the Middle East, today featured Prime Minister Shido's policy speech, and later in the evening, the US will release September's job statistics, causing some cautiousness among investors. However, buying prevailed at the opening.
By sector, mining, oil & coal products, retail trade, insurance, and pulp & paper saw price increases, while marine transportation, pharmaceuticals, and warehouse transportation related sectors experienced declines. Among the top trading values in the TSE First Section, ENEOS <5020>, INPEX <1605>, TEPCO HD <9501>, M3 <2413>, 7&iHD <3382>, AEON <8267>, Mitsubishi Heavy <7011>, Mercari <4385>, Fujikura <5803>, NEC <6701>, IHI <7013>, Kobe Steel <3038>, First Retailing <9983>, and others rose. On the other hand, Nippon Yusen <9101>, Mitsui OSK Lines <9104>, Kawasaki Kisen <9107>, Kasumigaseki Capital <3498>, Sumitomo Forestry <1911>, Shimano Inc Unsponsored ADR <7309>, Disco <6146>, Sakura <3778>, Toho Electric <8035>, Laser Tech <6920>, Itochu <8001>, Tokio Marine <8766>, Kawasaki Heavy <7012>, QP <2809>, and Daikin <6367> among others declined.