決算については米国では足もとで良好な決算が続いていたほか、国内でもディスコ＜6146＞、ニデック＜6594＞、アドバンテスト＜6857＞など好反応をみせていた。ただし、決算発表が本格化するなかで主要企業の予想を下回る結果も目立ち始めてきており、センチメントを冷ます場面もみられてきた。結果を見極めたいとするムードのなか、個別の決算を手掛かりとした日替わり物色に向かわせよう。The Japanese stock market on the first day is likely to be dominated by selling pressure. On October 31, the US market saw the NY Dow drop by 378 points and the Nasdaq by 512 points. High-tech stocks were broadly sold off due to the decline of Microsoft and Meta Platforms. Furthermore, concerns over the worsening situation in the Middle East as Iran prepares for a large-scale retaliatory attack against Israel also contributed to selling pressure. The Chicago Nikkei 225 futures settlement price was 710 yen lower than Osaka at 38,350 yen. The yen exchange rate is hovering around 151.90 yen per dollar.
The Nikkei average stock price is likely to start with a selling dominant trend, following the trend of Chicago futures. With Bank of Japan Governor Haruhiko Kuroda showing a positive stance towards additional rate hikes at a press conference, the yen strengthened and the dollar weakened temporarily to around 151 yen per dollar, causing the Nikkei 225 futures to start with selling in the night session. Under the influence of the decline in US high-tech stocks, there were moments where it was sold down to 38,120 yen temporarily. With the sharp drop to the 200-day moving average level, selling related to the index is expected to swell in the morning.
After the round of selling, there may be a deadlock, but in the US, upcoming key events include employment statistics, the US presidential election next week, and the Federal Open Market Committee (FOMC). With a tendency towards caution prevailing, ahead of a 3-day weekend domestically, there may be limited buying opportunities for a rebound after the round of selling.
Regarding earnings, in the US, there have been continuous good earnings reports so far, while domestically, companies like Disco<6146>, Nidec<6594>, and Advantest<6857> have shown positive reactions. However, as earnings announcements intensify, there are increasing results below the financial estimates of major companies, leading to moments of dampened sentiment. Amid a mood of wanting to assess results, let's focus on daily stock picking based on individual earnings.
In terms of earnings announcements last night, attention was drawn to companies like Takeda Pharmaceutical<4502>, Screen HD<7735>, Kyushu Electric Power<9508>, Chuden<1941>, Nippon Gaishi<5333>, Komori<6349>, J Power<9513>, M&A Capital<6080>, Ibiden<4062>, and Makino Milling<6135>.
