In the afternoon trading on the 10th, the following three points should be noted.

Nikkei average extends gains, narrowing the increase after buying rounds, keeping an eye on the Chinese market.

The dollar-yen remains sluggish, keeping an eye on US interest rates and Japanese stocks.

Top contributors to the price increase are Softbank Group <9984>, with Fast Retailing <9983> following in second place.

Nikkei average extends gains, narrowing the increase after buying rounds, keeping an eye on the Chinese market.

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 Stock Average constituent stocks, Suzuki Corp <7269>, SUBARU Corp unsponsored adr <7270>, Honda <7267>, Nissan Motor Co., Ltd <7201>, Mazda Motor Corp <7261> and other automobile-related stocks were bought, as the exchange rate rose to the 149-yen range against the dollar. J. Front Retailing Co., Ltd <3086> also rose as a positive securities company report was taken into account. Softbank Group Co <9984>, nikon corp spons <7731>, Ricoh Co <7752>, Kubota Corp <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.

Dollar/yen struggled to rise, keeping an eye on US interest rates and the Japanese stock market.

In the morning session of the Tokyo market on the 10th, the dollar/yen struggled to rise, increasing from 149.00 yen to 149.30 yen before slightly decreasing. The yield on the US 10-year bond slowed down and remained firm after a slowdown, causing a retreat in dollar selling. On the other hand, with Asia's major indices like the Nikkei Stock Average and the Shanghai Composite Index showing strength, selling of yen continued.

The trading ranges so far are as follows: Dollar/yen ranging from 149.00 yen to 149.30 yen, Euro/yen from 163.01 yen to 163.34 yen, and Euro/dollar from 1.0938 dollars to 1.0946 dollars.

Check stocks for the afternoon session

・Gakumieid <184A>, Image Information Development <3803>, and 4 other stocks hit the daily limit.

*Includes temporary stopper (indicated price)

・Softbank Group Co <9984> topped the gainers list, followed by Fast Retailing <9983>.

Economic indicators and remarks by important people

[Economic indicators]

・Sun. September Domestic Corporate Price Index: +2.8% year-on-year (Estimate: +2.3%, August: +2.6% ← +2.5%)

[Important Person's Remarks]

- Daily US SF Fed President

If the economy progresses as expected, there is a possibility of 1 or 2 more interest rate cuts by the end of the year.

Nothing special

Nothing special