The Nikkei average fell for the first time in 3 days. It ended the morning session at 39,321.87 yen (approximate trading volume of 1.43 billion shares), down 158.80 yen (-0.40%) from the previous day.

The U.S. stock market on the 6th saw a significant increase. The Dow Jones Industrial Average closed at 43,729.93, up 1,508.05 points, and the Nasdaq closed at 18,983.46, up 544.29 points. It was bought after the presidential election passage for clearing up uncertainty, opening significantly higher. Expectations for the pro-business policies of the 2nd Trump administration such as regulatory relaxations leading to increased company earnings accelerated buying, showing a strong trend throughout the day. With optimistic views on the economy and expectations for additional rate cuts at the Federal Reserve Board (FRB)’s Federal Open Market Committee (FOMC), the market expanded its gains towards the end, setting record highs.

Following the significant increase in U.S. stocks, the Tokyo market also started with a buying dominance. After the opening, the Nikkei average rose to 39,884.01 yen. However, as Trump's victory had already been factored in the previous day's sharp rise, after the initial buying, the Nikkei average quickly fell to nearly breaking below 39,000 yen. Despite a volatile session with large fluctuations, thanks to the solid performance of Toyota Motor <7203>, the decline in the Nikkei average narrowed towards the close. Trading volume in the morning Prime market exceeded 3 trillion yen as earnings-related stocks were in focus.

Among the Nikkei average constituent stocks, Minebea Mitsumi saw a significant decline after lowering its net profit outlook, while Nitto Denko Corp was sold off due to falling short of the market's first-half net profit expectations. Additionally, Bandai Namco Holdings, which was bought based on yesterday's earnings, also experienced a decline. Semiconductor stocks such as Screen Holdings, Lasertec Corp, and TDK Corp were also sold off. In addition, Fast Retailing Co, Disco Corp, Chugai Pharmaceutical Co, and HOYA Corp declined.

On the other hand, Keio <9008> rose significantly on the upward revision of performance and dividend forecasts, share buybacks, among other factors. Daikin <6367>, Tobu <9001>, Tokai Carbon <5301> also rose as their earnings were taken into consideration. In addition, Yamaha Motor <7272>, Denso <6902>, Taiheiyo Cement <5233>, Konica Minolta <4902>, DeNA <2432>, Tokyo Gas <9531>, and more were bought.

Among industry sectors, precision instruments, pharmaceuticals, retail, and nonferrous metals were the only 4 sectors to decline, while transportation equipment, insurance, textiles, iron & steel, and banks rose.

While the Nikkei average turned negative due to the decline of some listed stocks, the TOPIX remained firm, indicating a possibility of a rebound in the afternoon session. With interest focusing on earnings announcement stocks, attention should be paid to the movements of Fast Retailing Co and semiconductor stocks.

Earnings announcement companies during trading hours are listed as follows: in the 12 o'clock hour, Goyo Kensetsu Co, in the 1 o'clock hour, Toyo Boseki Co, Kurabo Industries Ltd, Oji Holdings Corp, Mitsui Chemicals Inc, OKI Electric Industry Co, in the 2 o'clock hour, Ando Hazama Corp, Fujifilm Holdings Corp, Nippon Telegraph and Telephone Corp, in the 3 o'clock hour, Kirin Holdings Co, Alfresa Holdings Corp, Teijin Ltd, Kao Corp, Shiseido Company, Limited Sponsored ADR, Nippon Steel Corp, Fujikura Ltd, TOWA Corp, Rohm Co, Taiyo Yuden Co, Mazda Motor Corp Spons, Nikon Corp Spons, Tokyo Tatemono Co, Tokyo Metro Co, Seibu Holdings Inc, Fuji Software Inc, and others are scheduled.