[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 39448.08; -32.59

TOPIX; 2745.67; +29.75

Summary of the start of the afternoon session

The afternoon Nikkei average started with a decrease of 32.59 yen from the previous day at 39448.08 yen, reducing the decline from the morning session (39321.87 yen). During lunchtime, the Nikkei 225 futures traded with strong support in the 39360 yen-39510 yen range. The dollar-yen exchange rate is around 154.40-50 yen per dollar, maintaining a slightly weaker yen and stronger dollar level since around 9 a.m. The Asian market saw the Shanghai Composite Index start with a decline, but then move steadily higher by about 0.8%. On the other hand, the Hang Seng Index in Hong Kong turned higher after opening lower, rising by about 0.8%.

The Tokyo market in the afternoon session began with a slight buying trend compared to the morning session. Following a significant rise in major indices in the U.S. stock market yesterday, the Dow Jones futures have been moving steadily higher in extended hours trading, providing reassurance to the Tokyo market. However, some investors are hesitant to actively buy as they want to assess the policies of President-elect Trump in the U.S. presidential election.

In sectors, precision instruments, pharmaceuticals, and retail trade are declining, while textiles & apparels, insurance, and transportation equipment are among the top gainers in terms of percentage increase.

Among the top trading value stocks on the Tokyo Stock Exchange Prime Market, Nitori HD <9843>, Lasertec <6920>, Screen HD <7735>, Disco <6146>, SoftBank Group <9984>, Keyence <6861>, Toyo Electric <8035>, Itochu <8001>, Fast Retailing <9983>, TDK <6762> are declining. On the other hand, Daikin <6367>, Dai-ichi Life Holdings <8750>, Denso <6902>, Kawasaki Heavy Industries <7012>, Resona Holdings <8308>, Toyota <7203>, Marubeni <8002>, Hitachi <6501>, Komatsu <6301>, MS&AD Insurance <8725> are on the rise.