In trading five days ago, there are three points to note.

Amid the waiting for the results of the US presidential election, individual responses are being taken.

KDDI announced a 2.3% increase in 2Q operating profit to 573 billion yen, along with a share buyback and stock split.

Focus of the morning session: Shibaura Machinery, various companies in the machinery industry accelerating response to large-scale work.

Amid the waiting for the results of the US presidential election, individual responses are being taken.

On the 5th day, the Japanese stock market is likely to see market developments while keeping an eye on the results of the US presidential election. On the 4th day, the US market saw the NY Dow down 257 points and the Nasdaq down 59 points. Nvidia announced that S&P Dow Jones Indices will replace Intel with the same company in the Dow Jones Industrial Average composition stocks, causing the stock to rise. On the other hand, Intel declined, becoming a burden on the NY Dow. The Chicago Nikkei 225 futures settlement price was 255 yen higher in Osaka at 38,375 yen. The yen is trading around 152.10 yen to the dollar.

The Nikkei average stock price is expected to start with a dominant buying trend, following the Chicago futures. Nikkei 225 futures were seen being bought up to 38,790 yen temporarily in the night session after trading on the 1st day. While the Chicago futures market saw a narrowing of gains, the Nikkei average is likely to show an autonomous rebound after experiencing over 1000 yen of decline last weekend. Additionally, with Nvidia being included in the NY Dow from the 8th, there is a possibility of increased interest in high-tech stocks, which may attract buying back by sellers.

However, in the US presidential opinion polls, there is a close match between Vice President Harris and former President Trump's approval ratings, leading to the possibility of delayed results. It is expected that with each progress in the vote counting, there will be turbulent price movements through short-term trades, making active trading more cautious. Nevertheless, even if there are turbulent developments after the results are known, there is likely to be a dominant buying trend due to expectations towards economic policies, making it advisable to wait for pullbacks with strong buying interest.

Amid the peak of earnings reports, it is considered easier to move towards individual responses, but it is believed that funds are more likely to concentrate on well-performing earnings stocks. After the close of trading on the first day of the earnings report, TAC <4319>, Hirose Electric <6806>, Yamazaki <6147>, Fusos Pharmaceutical <4538>, Geomatec <6907>, Teo Sea <8841>, Hagoromo <2831>, Sanrio <8136>, Gurunavi <2440>, Ajikan <2907>, Sumitomo Electric Industries <5802>, Tojo Den <6643>, Organo <6368>, Tosei Seimitsu <7729>, NN ID <2349>, etc. are attracting attention.

KDDI announced a 2.3% increase in 2Q operating profit to 573 billion yen, along with a share buyback and stock split.

KDDI <9433> released its performance for the second quarter of the fiscal year ending March 2025, with revenue up 2.8% year-on-year to 2 trillion 855.7 billion 13 million yen, and operating profit up 2.3% to 573 billion 86 million yen. The non-telecommunications sectors such as the corporate digital transformation (DX) support business and finance performed well. The forecast for the fiscal year ending March 2025 was kept unchanged. Additionally, they announced the implementation of a share buyback of up to 100 billion yen, targeting a maximum of 28 million shares, representing 1.39% of the total issued shares (excluding treasury stock). They also announced a stock split of 1 share into 2 shares as of the end of March 2025.

Materials of concern in the morning session

Chicago Nikkei futures rose (38,375, +255 compared to Osaka).

US crude oil futures rose (71.47, +1.98).

Long-term US interest rates fell.

Expectations for inflation to ease in the US.

Active share buybacks

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

- Shibaura Machinery <6104> machinery companies, accelerating response to large workpieces.

- Canon <7751> OA companies, accelerating resource recycling, over 80% reuse of regenerated machines and components.

- Cosmo Energy HD <5021> Cosmo Oil, selling all shares of its joint venture with South Korea's Paraxylene, 16 billion yen.

- Nissan Motor <7201> and Mitsubishi Corporation establish a joint investment company for self-driving and EV-related ventures.

- Fujidice <6167> develops nickel electrodes, reducing manufacturing of green hydrogen power.

- Sojitz <2768> collaborates with Oita Prefecture on onion production and distribution, providing support through facility installations and more.

KDDI Corporation, Toyota Motor, and NTT are eager to join the "Mobility AI Platform".

Asahi Kasei, Honda, and jointly investing in a Canadian company for lithium battery separator.

Bridgestone collaborating with a US company on developing tires for lunar exploration vehicles.

Suzuki acquiring Sony-affiliated factories in Shizuoka and Kohsei.

Blue Innovation establishing a drone logistics research base in Tokyo.

Kyocera's new tablet can handle orders and payments for restaurants with one device.

Ushio Electric miniaturizing LED packages to 1/100th of the original size.

Canon increasing the near infrared sensitivity of CMOS sensors by 2.4 times.

Toshiba Tec <6588> celebrates the 10th anniversary of electronic receipt services, strengthening the utilization of purchase data.

Mitsui Chemicals <4183> to collaborate with users for recycling soft packaging laminate films, aiming for practical use in the 2030s.

Taisei Corporation <1801> enhances autonomous control for construction robot systems for patrol monitoring.

Toyobo <3101> improves heat resistance of biodegradable films for industrial use using polylactic acid.

Chubu Electric Power <9502> invests in First Environment, collaborating with water supply.

☆ Schedule of events in the morning session

08:50 Monetary Base in October (September: -0.1% year-on-year).

• At 10:45, China's October Caixin services PMI (forecast: 50.5, September: 50.3).