On the 30th, the Japanese stock market is likely to see a market development dominated by buying while in a stalemate. On the 29th, the US market saw the NY Dow down 154 points and the Nasdaq up 145 points. In the September US job dynamics survey (JOLTS), the decrease in job openings exceeded expectations, leading to selling out of caution for a cooling labor market and economic slowdown. The Nasdaq rose steadily throughout the day due to buying driven by expectations for earnings of major high-tech companies, reaching new highs. The settlement price of Chicago Nikkei 225 futures was 200 yen higher at 39,170 yen compared to Osaka. The yen is trading around 153.20 to the dollar.

The Nikkei average stock price is expected to start with a dominant buying trend as it follows Chicago futures. In the US, amid caution about economic slowdown, economically sensitive stocks were sold off, and the weakness in housing indicators led to weakness in housing-related stocks. On the other hand, high-tech stocks performed well due to anticipation of earnings. Alphabet announced its earnings for July-September after the close of trading and is being bought in extended hours trading based on earnings evaluations. Currently, there have been consecutive earnings that exceeded expectations for large US tech stocks, suggesting significant support for high-tech stocks in the Tokyo market.

The Nikkei average stock price initially saw selling following the ruling party's loss of a majority in the lower house election, but later showed a rapid turnaround, ending with an increase of nearly 300 yen yesterday, closing at a high. While caution is often warranted with regard to rapid surges, the recent two-day increase is believed to be driven by a move to buy back selling positions that had been gradually accumulated factoring in political risks. With the US presidential election approaching and as earnings announcements intensify, proactive buying is expected to be restrained, and although there has been a rise of nearly 1000 yen in two days, it is unlikely to indicate a significant imbalance tilted towards buying.

Continued aggressive buying is limited, but with the positive earnings of US high-tech companies continuing, it is relatively easy to lean towards risk preference. Therefore, it is considered that there is a high likelihood of buying on dips for high-tech stocks that have been adjusting recently. Also, considering that anticipatory moves regarding earnings are limited, it is expected that there will be increased volatile movements following the results.

In addition, among the companies that announced earnings last night, the following are attracting attention: Kimoto <7908>, Ichikawa <3513>, Shikoku Electric Power <9507>, Nidec <6951>, Cover <5253>, Taoka Chemical Industry <4113>, Nikkatsu Chemical Production <4094>, NEC <6701>, FFE&C <1775>, Musashi <7521>, Kameda Ka <2220>, Takara Tomy <7867>, etc.