[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 38,430.64; -523.96

TOPIX; 2,650.58; -29.33

Summary of the start of the afternoon session

The afternoon Nikkei average started slightly lower at ¥38,430.64, a decrease of ¥523.96 from the previous day's close (¥38,399.47). During lunchtime, the Nikkei 225 futures traded in a range of ¥38,370 to ¥38,480. The USD/JPY exchange rate remained at around ¥150.90-151.00 from around 9 a.m., with the yen slightly weaker and the dollar stronger. In Asia, the Shanghai Composite Index started with a slight decline but turned positive, rising by about 0.3%. On the other hand, the Hang Seng Index in Hong Kong continued to move in positive territory, showing an increase of about 0.1%.

In the afternoon, the Nikkei average began with a slight buying trend compared to the morning. The yen remained weaker and the dollar stronger, providing support for stock prices. Some view the 200-day moving average around ¥38,200, the 75-day line in the ¥38,200 range, and the 25-day line in the ¥38,400 range as key support levels, limiting further downside potential. Factors like rising domestic interest rates, domestic political uncertainty related to the October 27th Lower House election, and caution surrounding the U.S. presidential election on November 5th continue to weigh on stock prices.

In the sectors, real estate, construction, and machinery are among the top decliners, while marine transportation and transportation equipment are on the rise. In the top turnover on the TSE Prime market, companies like M3 Inc. <2413>, BayCurrent Consulting <6532>, Sumitomo Forestry <1911>, Mercari <4385>, RHC Holding <7453>, Kawasaki Heavy Industries <7012>, Mitsubishi Electric <6503>, Fast Retailing <9983>, Daikin Industries <6367>, and Mitsubishi Heavy Industries <7011> declined. Meanwhile, Rozet <6323>, Disco <6146>, Mitsui O.S.K. Lines <9104>, Nippon Yusen <9101>, Kawasaki Kisen <9107>, Toyota <7203>, and Itochu <8001> saw gains.