[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 39575.80; +297.84

TOPIX; 2726.58; +19.34

[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 10th, the Nikkei average opened higher at 39,575.80 yen, up 297.84 yen. The U.S. stock market continued to rise on the 9th. The Dow Jones Industrial Average closed at 42,512.00, up 431.63 points, and the Nasdaq ended trading at 18,291.62, up 108.70 points. Following a decline after the opening due to the diminishing expectations for a swift rate cut by the Federal Reserve Board (FRB), the market turned higher as hopes rose that China's fiscal stimulus aimed at economic recovery would support global economic growth and corporate sales. It became known that all participants agreed to continue the rate cut at the Federal Open Market Committee (FOMC) in September. Towards the end, the market expanded its gains, and the Dow hit a record high.

Buying dominated the Tokyo stock market today. Support for Tokyo stock prices came from the rise of major indices in the U.S. stock market yesterday. Also, the foreign exchange market showed a level of relief with the dollar trading around 149.10 yen, about 60 yen lower compared to around 3 PM yesterday. Furthermore, with the dissolution of the House of Representatives yesterday and the upcoming general election expected to be held on October 27, there was a view that interest in policies would increase, contributing to the support of stock prices. However, ongoing geopolitical risks in the Middle East, as well as the release of the U.S. consumer price index (CPI) for September later tonight, and the U.S. producer price index (PPI) for September tomorrow, led some to refrain from active buying as they wanted to assess the situations. It was noted that before the start of trading, the domestic corporate price index for September rose by 2.8% compared to the same month last year. The median of private forecasts compiled by QUICK was a 2.3% increase. According to the situation (weekly) of external and internal securities transactions announced also before the start of trading, foreign investors bought more domestic stocks for the second consecutive week between September 29 and October 5, with a net purchase amount of 919.3 billion yen.

By sector, banking, insurance, transportation equipment, wholesale trade, rubber products, etc., were among the top gainers, while retail trade, land transportation, construction, marine transportation, air transportation, etc., ranked high in the top losers. Among the top trading values on the Tokyo Stock Exchange Prime, Mitsubishi Electric <6503>, IHI <7013>, Disco <6146>, Honda <7267>, Mercari <4385>, Mitsui Chemicals <8031>, SoftBank Group <9984>, SMC <6273>, Nissan <7201>, Toyota <7203>, Mitsui Sumitomo <8316>, Shin-Etsu Chemical <4063>, Rakuten Group <4755>, etc., rose. On the other hand, Sumitomo Forestry <1911>, Saizeriya <7581>, Kobe Bussan <3038>, Kanematsu <8020>, Kawasaki Heavy <7012>, Fanuc <6954>, NYK Line <9101>, Hitachi <6501>, etc., declined.