In the afternoon of the 8th, we want to focus on the following three points in trading.

- The Nikkei Average rebounds, with high-tech stocks providing support from below but facing heavy resistance on the upside.

- The dollar-yen pair is lackluster, keeping an eye on US interest rates.

・Top contributors to the price increase are Softbank Group <9984>, followed by Recruit Holdings <6098> in second place.

The Nikkei Average rebounds, with high-tech stocks providing support from below but facing heavy resistance on the upside.

The Nikkei average rebounded. It ended the morning session at 39,515.36 yen, up 133.95 yen (+0.34%) from the previous day, with an estimated volume of 1.280 billion shares traded.

The U.S. stock market on the 7th was mixed. The Dow Jones fell by 0.59 dollars to 43,729.34 dollars, while the Nasdaq rose by 285.99 points to 19269.46. Buying continued to be influenced by the favorable reaction to Mr. Trump's victory in the presidential election, and expectations of a rate cut at the Federal Open Market Committee (FOMC) led to buying. The Nasdaq continued to rise following the expected rate cut by the Federal Reserve Board at the FOMC, resulting in a decline in long-term interest rates. While the overall market was pushed up, the Dow failed to maintain its positive territory and ended mixed.

Despite the mixed performance in the U.S. stock market, the Tokyo market opened with a buying trend driven by the strong movement of the Nasdaq. Trading was influenced by the calculation of the November options special clearing index (SQ) in the morning, which leaned slightly towards buying, which led the Nikkei average to expand its gains to 39,818.41 yen. However, it gradually narrowed its gains due to not reaching yesterday's high of 39,884.01 yen. Interest shifted towards earnings announcement stocks, leading to a consolidation around the 39,500 yen level before the morning close. The approximate SQ value was 39,901.35 yen.

Among the stocks included in the Nikkei average index, Ajinomoto <2802> was bought due to good performance and shareholder return measures, setting a new all-time high. Mitsubishi Heavy Industries <7011>, Nippon Steel <5631>, and other policy-related stocks also rose. In addition, Nomura Research Institute <4307>, ZOZO <3092>, Fujitsu <6702>, Keisei Electric Railway <9009>, SoftBank Group <9984>, and others were bought.

On the other hand, Tokyu Fudosan Holdings <8905>, Kurita Water Industries <6370>, Olympus <7733>, Ricoh <7752>, Asics <7936>, Mizuno <8022>, Orix <8591>, Mitsui Fudosan <8801>, Sumitomo Realty & Development <8830>, Tokyu <9005>, TV Asahi Holdings <9409>, SoftBank Group <9434>, Fujita Kanko <9722>, and others are scheduled to report their earnings.

By industry sector, information & communication, services, precision instruments, food products, and retail rose, while pulp & paper, transportation equipment, mining, rubbers, and petroleum & coal declined.

The exchange rate remained quiet in the high 153 yen per dollar range. In the afternoon session at the Tokyo market, interest is expected to be focused on earnings announcement stocks more than in the morning session, leading to a lack of direction for the Nikkei average. The earnings announcement stocks to be released during trading hours are as follows: in the 12 o'clock hour, Toyo Suisan <2875>, IIJ <3774>; in the 13 o'clock hour, Hankyu Hanshin Holdings <8078>, Yamatane Corporation <9305>; in the 2 o'clock hour, Morinaga Milk Industry <2264>, AGC <5202>; at 3 o'clock, Fudo Tetra <1813>, Takara Holdings <2531>, Miyachi Corporation <3431>, SUMCO <3436>, Mitsubishi Gas Chemical <4182>, Kansai Paint <4613>, Kobayashi Pharmaceutical <4967>, Ohara Metal Industry <5541>, Nippon Steel <5631>, Mitsui Mining & Smelting <5706>, Mitsubishi Diamond <5711>, Toho Titanium <5727>, Shizuoka Gas <5831>, Kubota Corporation <6326>, Olympus <7733>, Ricoh <7752>, Asics <7936>, Mizuno <8022>, Orix <8591>, Mitsui Fudosan <8801>, Sumitomo Realty & Development <8830>, Tokyu <9005>, TV Asahi Holdings <9409>, SoftBank <9434>, Fujita Kanko <9722>, and more.

The dollar-yen struggled, keeping an eye on US interest rates.

In the morning of the 8th, at the Tokyo market, the dollar-yen struggled, rose from 152.87 yen to 153.37 yen, but then stalled around 153 yen. The US 10-year bond yield, which fell the previous day, rebounded slightly, but then paused its rise. On the other hand, the Nikkei Stock Average maintained a firm tone, leading to selling yen against the stock prices.

The trading ranges so far are as follows: Dollar-yen ranges from 152.87 yen to 153.37 yen, Euro-yen ranges from 165.01 yen to 165.42 yen, and Euro-dollar ranges from 1.0779 dollars to 1.0805 dollars.

Check stocks for the afternoon session

・Cider <2435>, Hmcomm <265A>, and 4 other stocks hit the daily upper price limit.

*Includes temporary stopper (indicated price)

・Top contributors to the price increase are Softbank Group <9984>, followed by Recruit Holdings <6098> in second place.

Economic indicators and remarks by important people

[Economic indicators]

・Domestic household spending in Japan for September: year-on-year -1.1% (estimate: -1.8%, August: -1.9%)

[Important Person's Remarks]

- Powell, FRB Chairman.

"The labor market is not a significant inflationary factor."

"The labor market has eased the previous overheating and remains robust."

"The policy interest rate path is not set in advance, but decided at each meeting."

"There are 6 weeks until the December meeting, and we will carefully examine the indicators."

"Fiscal policy will be incorporated into the model only if it actually becomes law."

"Even after today's rate cut, the policy remains restrictive on economic activities."

"As we approach the neutral interest rate, it may be appropriate to slow down the pace of rate cuts."

"There is no need to rush to lower the neutral interest rate."

At 14:00, the September economic outlook index, preliminary value (estimate: 109.0, August: 106.9).

Not applicable.