In the morning session of the 30th day of trade, we want to focus on the following three points.

Above-expected earnings of large US tech stocks are supportive factors.

Chubu Electric Power, 2Q operating profit decreased by 41.9% to 142.7 billion yen, revising upward the full-year operating profit forecast for the fiscal year ending March 2025

Key points in the morning session: Nisshin Tool for super hard cutting for stainless steel, strategic product launch with double the lifespan.

Above-expected earnings of large US tech stocks are supportive factors.

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.

Chubu Electric Power, 2Q operating profit decreased by 41.9% to 142.7 billion yen, revising upward the full-year operating profit forecast for the fiscal year ending March 2025

The financial results for the second quarter of the fiscal year ending March 2025 announced by Chubu Electric Power <9502> showed a 4.1% decrease in revenue from the same period last year to 1 trillion 766.4 billion 82 million yen, and operating profit decreased by 41.9% to 142.7 billion 54 million yen. This exceeds the consensus estimate of around 123 billion yen. The full-year financial forecast for the fiscal year ending March 2025 has been upwardly revised from 215 billion yen to 275 billion yen.

Materials of concern in the morning session

- Nikkei Average is up (38903.68, +298.15)

- NASDAQ Composite Index is up (18712.75, +145.56)

1 Dollar = 153.20-30 Yen.

・シカゴ日経先物は上昇（39170、大阪比+200）

・SOX指数は上昇（5332.17、+120.51）

・VIX指数は低下（19.34、-0.46）

Expectations for inflation to ease in the US.

Active share buybacks

Request for improvement in corporate value by the Tokyo Stock Exchange.

・日進工具＜6157＞ステンレス鋼向け超硬切削、寿命2倍の戦略商品投入

・東北電力＜9506＞13年ぶり「女川2号機」再稼働、被災原発で初

・YKT＜2693＞proposes new processing method aimed at SiC ingots for next-generation power semiconductors

・ELEMAC＜2715＞Toyota Tsusho complete acquisition to strengthen digital components

・Mitsui & Co.＜8031＞, together with petroleum giant Repsol, considering CCS in Texas offshore, aiming for 20 million tons per year

・INTLOOP＜9556＞Itochu Corporation invests to meet DX demand

・Pacific Industries＜7250＞ increases facility investment for new building operation including molds and research and development

・DENSO＜6902＞ collaborates with US startup on AI semiconductor development for 'intelligence' in cars

・ESPEC＜6859＞ achieves F-gas regulation compliance with 70% energy-saving constant temperature and humidity chamber

・Kawasaki Heavy Industries＜7012＞ unveils hydrogen co-fired engine, operating power generation demonstration facility in Kobe

Toa DKK <6848> establishes new facilities for development, design, and production in Saitama.

Shimadzu Corporation <7701> enters the chromatography equipment market for pharmaceutical manufacturing processes, invests in a US company.

Kubota <6326> invests in a French startup, develops ultraviolet irradiation equipment for plants.

NTT <9432>, a major telecommunications company, leads discussions on revising NTT law, progress towards utilizing mobile networks.

Mitsubishi Electric <6503> seeks advice on power semiconductors, with Mr. Takami, Head of Semiconductor and Device Business Division.

Fujitsu <6702> collaborates with Toyota Systems on core system updates, AI generation reduces time by half.

BIPROGY <8056> predicts total solar power generation using AI in 30-minute intervals.

Aichi Steel <5482> enhances Chita Plant, increases stainless steel shapes rolling production capacity by 15%.

Sumitomo Chemical <4005> to focus on Oita as the core factory, supporting the growth of low-molecular pharmaceuticals.

Refine Birth G <7375> to establish a horizontal utilization system for recycling waste tile carpets, including undeveloped areas in Sapporo.

J Power <9513> to enhance the hydroelectric power output of the Hokkaido Ashoro Power Plant.

Nippon Paper Pulp Trading <8032> acquires businesses with wholesale packaging materials for three German companies.

☆ Schedule of events in the morning session

Bank of Japan financial policy decision meeting (until the 31st).

・9:30 Australian Consumer Price Index for July-September (YoY Forecast: +2.9%, April-June: +3.8%)

・9:30 Australian Consumer Price Index for September (YoY Forecast: +2.3%, August: +2.7%)