Nikkei average continued to decline significantly. It closed at 38,196.53 yen (volume approximate 0.99 billion shares) with a decrease of 884.72 yen (-2.26%) from the previous day's close after the morning session.

The U.S. stock market continued to decline on October 31st. The Dow Jones fell 378.08 points to 41,763.46, while the Nasdaq ended trading at 18,095.15, down 512.78 points. The core PCE price index exceeded expectations leading to a drop after the opening bell. Concerns about the worsening Middle East situation due to reports of Iran preparing for a massive retaliatory attack against Israel also contributed to the selling pressure.

Due to the decline in technology stocks in the U.S. market, the Tokyo market started with a selling bias. The Nikkei average started around 38,500 yen, then widened its losses. Laser Tech <6920> and Socionext <6526> plummeted as semiconductor stocks declined noticeably. The trading volume in the morning prime market exceeded 2.2 trillion yen, remaining active.

In the Nikkei average constituent stocks, Laser Tech faced a significant decline due to missing market consensus, while Socionext, Fujitsu <6702>, Nikon <7731>, Sumitomo Heavy <6302> were also under selling pressure due to disappointing earnings. Additionally, Fujikura <5803>, Furukawa Electric <5801> and other electric wire stocks showed weakness. Shiseido Company,Limited Sponsored ADR <4911>, SoftBank Group Corp <9984>, AGC Inc <5214>, Tokyo Electron Ltd. Unsponsored ADR <8035>, JT <2914>, among others, were sold off.

However, Mitsubishi Electric Corp. Unsponsored ADR <6503>, Panasonic <6752> saw noticeable gains due to earnings reports, while Keisei Electric Railway <9009> surged on business alliance and stock splits with Aeon <8267>. Chiba Bank <8331>, Resona Holdings <8308>, Shizuoka Bank <5831>, Concordia Financial Group <7186>, and other banking stocks held firm. JTEKT Corp <6473>, NGK Insulators <5333>, Nichirei Corp <2871>, Kyowa Kirin Co <4151> were also bought up.

Among the industry categories, nonferrous metals, chemicals, airlines, electric appliances, transportation equipment, etc., declined, whereas only banking stocks showed an increase.

With the upcoming U.S. employment statistics announcement tonight and a 3-day weekend approaching, cautious trading is expected in the afternoon session, leading the Nikkei average to consolidation in the lower range. The afternoon session is anticipated to be driven by earnings announcements. Companies like Calbee <2229>, Mabuchi Motor <6592> in the 12:00 session, Asahi Kasei <3407>, Mitsubishi Chemical Holdings <4188>, Aoi Electronics <6832>, Subaru Corp Unsponsored ADR <7270>, and Mitsui & Co <8031> in the 14:00 session are scheduled to report.