In the morning session on the 13th, the following three points deserve attention.

■Attention is focused on the reaction to the financial results of Toshiba Electronics.

■Toshiba Electronics, 25/3 upward revision Operating profit 680 billion yen ← 627 billion yen.

■Focus of the morning session: JFEHD, JFE Enji, setting the target for the 28/3 fiscal year to a record high, order amount of 800 billion yen.

Focus is gathering on the earnings reaction of Tokyo Electron.

On the 13th, the Japanese stock market is likely to develop with a sense of resilience after starting with a selling bias. On the 12th in the US market, the NY Dow was down 382 points, and the Nasdaq was down 17 points. Amid continued buying on expectations of policies by the Trump administration, short-term overheating is cautioned against, with profit-taking selling prevailing. The rise in long-term US Treasury yields due to improvements in economic outlook and speculation of rate cuts also became a burden. In addition, with the upcoming announcement of the October US Consumer Price Index (CPI) the next day, it seems to be heading for position adjustments. The Chicago Nikkei 225 futures settlement price was 150 yen lower at 39,260 yen compared to Osaka. The yen exchange rate is hovering around 154.50 yen to the dollar.

The Nikkei average stock price is expected to begin with a slightly bearish trend as it follows suit with Chicago futures. While the Nikkei 225 futures were temporarily sold off to 21,900 points during the night session, the 25-day moving average level, which is at the same level, is likely to be perceived as a support line. Although the US market declined, the VIX index's decrease makes it easier to lean towards risk preference, and there seems to be a strong desire to buy on dips waiting for a rebound.

Amid reports that the next US President, Trump, is preparing to appoint two Republican lawmakers known for their hardline stance against China as Secretary of State and National Security Advisor, there is a concern about the escalating tension in US-China relations. However, in the US market on the 12th, Nvidia rebounded after 3 days, and a rebalancing movement is likely to be observed. Domestically, Toshiba Elec<8035> announced an upward revision of its financial estimates for the fiscal year ending March 2025. If Toshiba Elec, which has been showing weak price movements, strengthens its rebound, it may become a support factor for other semiconductor stocks.

Similar to the US, in the Tokyo market, it is easy for profit-taking to occur for stocks that have been experiencing strong price movements recently. However, for stocks continuing a strong trend, there may also be moves to buy on dips. In addition, in cryptocurrency-related stocks that have been gaining momentum in the Trump trade, they are likely to head for a period of position adjustments. Furthermore, in the earnings announcements last night, apart from Toshiba Elec, Resonac HD<4004>, Hoshizaki<6465>, Toho Pharmaceutical<4553>, Iwatani Corp<8088>, Shibaura Machine<6104>, Broderick<3673>, Shinnihonseiyaku<4931>, Namura Shipbuilding<7014>, Fujiseiyaku<4554>, Nippon Soda<4092>, and others are being watched.

■ Toei Electric has revised its operating profit for 2025/3 upward to 680 billion yen from 627 billion yen.

Toshiba Electronics <8035> announced a revision of its financial estimates for the fiscal year ending March 2025. The operating profit was upwardly revised from 627 billion yen to 680 billion yen. In the electronics industry, various products equipped with generated AI are being introduced, leading to the emergence of new markets. In the semiconductor manufacturing equipment market, investments in memory and advanced packaging equipment for generated AI applications are notably increasing, along with continued investments in mature generation equipment in China. Investments in equipment for advanced generation logic/foundry also surpassed the same period of the previous year. Against the backdrop of expanding information and communication technology, the transition to a data society, and efforts towards a decarbonized society, the importance of semiconductors in supporting electronic equipment and the significance of technological innovation are increasing. Further growth in the semiconductor manufacturing equipment market is expected in the medium to long term. Additionally, they announced a share buyback of 3.5 million shares (0.8% of the issued shares) with an upper limit of 70 billion yen.

Materials of concern in the morning session

1 dollar = 154.50-60 yen.

The VIX index fell (14.71, -0.26).

NYMEX crude oil futures rose (68.12, +0.08).

Active share buybacks

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

JFE Holdings <5411> JFE Engineering sets a record high target for the fiscal year ending March 2028, with orders reaching 800 billion yen.

Agrokane Showa <4955> Idemitsu Kosan offers TOB at 23 billion yen, expanding its agrochemical business.

Toyo Engineering <6330> collaborates with a Thai company to promote plant decarbonization.

Nippon Shokubai <4114> acquires a subsidiary of JSR to strengthen waterproof materials and more.

Tohoku Electric Power <9506> to restart reactor at Onagawa Nuclear Power Plant Unit 2 today.

Toyota Tsusho <8015> targets small-lot deliveries with over 20% investment in Logiquest.

Kyokuto Kaihatsu Kogyo <7226> acquires Australian special vehicle manufacturer for 10.1 billion yen, strengthening overseas mutual supply of vehicle models.

- The Japan Fair Trade Commission has conducted on-site investigations into Shinmeiwa Kogyo Co., Ltd. <7224> and Kyokuto Kaihatsu Co., Ltd., suspecting cartel involvement in truck chassis assembly.

- Yamaha Motor Co., Ltd. <7272> is investing in a French electric two-wheeler development company, exploring joint technical development.

- President Tomomi Takakawa of Daido Metal Industries Co., Ltd. <7245> states that bearings are popular.

- Toyota Industries Corporation <6201> is considering acquiring a German company to strengthen airport baggage sorting and transportation.

- TOWA Corporation <6315> is establishing a subsidiary in India for the sale of semiconductor equipment.

- Shimadzu Corporation <7701> has developed a rapid specific identification of complex scents using mass spectrometry.

- Dexerials Corporation <4980> has developed manufacturing technology for conductive films with a particle size of 2.2 micrometers for LED displays.

- Twinbird Corporation <6897> aims to increase domestic production to 50% to reduce the impact of currency fluctuations and improve quality.

Renesas <6723> starts mass production of microcontrollers equipped with ARM cores, with a 15% price reduction.

Kaneka <4118> focuses on health support, targeting a business revenue of 100 billion yen for the year 2030.

First Rare Earth Chemical Industry <4082> introduces new products for positive electrode additives, aiming to extend the lifespan of lithium batteries.

Mitsubishi Chemical G <4188> invests in the emerging US market for carbon fiber composite materials.

DIC <4631> raises prices for its inorganic pigment products.

☆ Schedule of events in the morning session

08:50 October Domestic Corporate Price Index (YoY Forecast: +2.9%, September: +2.8%).

・Nothing in particular