The Nikkei average continued to rise. It ended the morning session at 39,395.05 yen, up 117.09 yen (+0.30%) from the previous day, with an estimated volume of 0.770 million shares traded.

The U.S. stock market extended its gains on the 9th. The Dow Jones Industrial Average closed at 42,512.00, up 431.63 points, while the Nasdaq ended trading at 18,291.62, up 108.70 points. Expectations for a swift rate cut by the Federal Reserve receded, leading to a decline after the opening. However, supported by expectations that China's fiscal stimulus aimed at reviving the economy will support global economic and corporate sales recovery, the market turned upwards. It became clear that all participants in the September Federal Open Market Committee (FOMC) meeting agreed to continue the rate cuts as revealed in the minutes released by the Federal Reserve. As a result, the market extended its gains towards the end of the session, with the Dow setting a new record high.

In response to the strong movement of U.S. stocks, the Tokyo market started trading with a bias towards buying. The Nikkei average rose to the 39,600 yen range, but hesitated due to the volatile Chinese stock market. The focus was on the U.S. CPI data for September, leading to a cautious market with heavy resistance levels. The trading value in the morning prime market remained at 1.7 trillion yen, indicating a cautious stance by investors.

Among the Nikkei average constituent stocks, Suzuki <7269>, SUBARU <7270>, Honda <7267>, Nissan Motor <7201>, and Mazda <7261>, as well as J. Front Retailing <3086>, saw buying interest in the automotive sector due to the exchange rate at the 149 yen level against the dollar. Positive reports from securities companies led to an increase in J. Front Retailing's stock. Additionally, SoftBank Group <9984>, Nikon Corp spons <7731>, Ricoh <7752>, and Kubota <6326> were also bought.

However, Aeon <8267>, which announced a 76% year-on-year decrease in net profit for the March-August 2024 period, saw significant declines, as well as shiseido company,limited sponsored adr <4911> and fanuc corp <6954>, among other China-related stocks. Defense-related stocks like Kawasaki Heavy <7012>, Mitsubishi Heavy <7011>, IHI <7013>, Nippon Steel & Sumitomo Metal <5631> were also weak. TOPPAN HOLDINGS <7911>, Fujikura <5803>, NEC <6701>, Chugai Pharmaceutical <4519> were among the stocks sold.

In terms of global sectors, rubber products, banking, transportation equipment, insurance, and pharmaceuticals saw increases, while retail trade, other products, textiles & apparels, services, and metal products experienced declines.

During the lunchtime session in the Chinese market, the Hang Seng Index in Hong Kong was rising, while the Shanghai Composite Index was mixed and falling. With the yen's weak trend easing, the afternoon session in Tokyo is expected to maintain a cautious stance amid a watchful mood towards the Chinese market, similar to the previous day. While there is a possibility of the Nikkei average entering negative territory compared to the previous day, a significant downward trend is likely to be avoided due to the lack of prominent selling factors.