[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 39,385.98; +108.02.

TOPIX; 2,712.38; +5.14.

Summary of the start of the afternoon session

The afternoon Nikkei average started slightly higher at 39,385.98, up 108.02 yen from the previous day's close (39,395.05), with a narrower gain. During lunchtime, the Nikkei 225 futures traded weakly in the range of 39,330 yen to 39,470 yen. The dollar-yen rate remained around 149.10-20 yen, with the yen slightly weaker and the dollar stronger since around 9 a.m. The Asian market saw the Shanghai Composite Index briefly lower at one point, but later rose by about 3.2%. Meanwhile, the Hang Seng Index in Hong Kong started to rise and expanded its gains by about 3.8%.

The Tokyo market in the afternoon opened with some selling pressure compared to the morning session. The Nikkei average approached the key level of 40,000 yen, making profit-taking selling and cautious selling on rebounds more likely on the upside. Additionally, there seems to be some reluctance to actively buy as investors want to assess tonight's release of the September U.S. Consumer Price Index (CPI). On the other hand, Dow Jones futures remained firm in extended hours trading, while the strong gains in the Hang Seng and Shanghai Composite Indexes are supporting stock prices in the Tokyo market.

In the sectors, rubber products, banking, and transportation equipment are among the top gainers, while retail trade, other products, and textiles & apparels are among the top losers.

In the top turnover on the TSE Prime Market, SoftBank Group <9984>, Rakuten Group <4755>, Honda <7267>, JT <2914>, Mitsubishi Electric <6503>, Mitsubishi UFJ <8306>, Takeda Pharmaceutical <4502>, Mitsui OSK Lines <9104>, Sumitomo Mitsui Financial Group <8316>, and Mizuho Financial Group <8411> are performing well. On the other hand, Aeon <8267>, Kawasaki Heavy Industries <7012>, Asics <7936>, Fujikura <5803>, Mercari <4385>, Shift <3697>, NEC <6701>, Advantest <6857>, Sumitomo Forestry <1911>, and Laser Technics <6920> are declining.