In the afternoon trading on the 14th, attention should be focused on the following three points.

The Nikkei average rebounded for the first time in three days, supported by a weaker yen but still lacks directional clarity.

The dollar-yen pair showed strength, trading in the 156 yen range before noon.

The biggest contributor to price rises was Fast Retailing <9983>, and the second was Fanuc Corp <6954>.

The Nikkei average rebounded for the first time in three days, supported by a weaker yen but still lacks directional clarity.

The Nikkei average rebounded for the first time in three days, ending the morning session at 38,761.02 yen, up 39.36 yen (+0.10%) compared to the previous day (estimated volume 1 billion 80 million shares).

The U.S. stock market on the 13th was mixed. The Dow Inc rose by 47.21 dollars to 43,958.19 dollars, while the Nasdaq fell by 50.68 points to 19,230.73. The October Consumer Price Index (CPI) matched estimates, leading to a sense of relief and initial buying, which supported the market. Concurrently, due to the CPI results, expectations for additional rate cuts at the Federal Open Market Committee (FOMC) meeting in December increased, leading to a rise in the market. The Dow remained strong throughout the day, but the Nasdaq slowed and turned downward toward the end.

While U.S. stocks were mixed, the reaction to the previous day's significant decline drove high demand in the Tokyo market as trading began. There were moments when the Nikkei average recovered above 39,000 yen, but directional clarity remained lacking, and after initial buying, it consolidated around the previous day's closing levels. Meanwhile, the dollar index rose to 106.5 for the first time since November 1, 2023, continuing a strong dollar trend. The exchange rate accelerated to 155 yen 90 cents per dollar, further weakening the yen against the dollar, which provided support for export-related stocks.

With the news that investment fund Oasis held just over 5% shareholding, Mercari <4385> saw an increase. Mitsubishi Heavy <7011> and Sumitomo Mitsui Trust <8309> were bought based on positive reports from brokerages. The buying of wire stocks continued with Sumitomo Electric <5802> and Furukawa Electric <5801>. Additionally, Kubota <6326>, Sapporo HD <2501>, Fujitsu <6702>, Panasonnic HD <6752>, Kawasaki Heavy <7012>, and Fanuc Corp <6954> were also purchased.

On the other hand, Kansai Electric Power <9503>, which announced a large public increase, saw a sharp decline, and 7 & i HD <3382>, which announced a proposal for delisting by the founders, retreated slightly. Rakuten <4755>, which reported its first operating profit after entering the mobile business for the July-September 2024 period, fluctuated negatively after initial buying. Mitsukoshi Isetan <3099> was sold off as a sense of material exhaustion arose after it posted good performance in the April-September 2024 period but maintained its full-year earnings forecast. Additionally, TOPPAN Holdings <7911>, Sumitomo Pharma <4506>, Laser Tech <6920>, and SUMCO <3436> were lackluster.

In terms of global sectors, nonferrous metals, wholesale, machinery, transportation equipment, and warehouse & transport related stocks rose, while electricity & gas, petroleum & coal, metal, land transportation, and retail sectors declined.

The Tokyo market in the afternoon may see the Nikkei average further decline around 2 PM as European investors begin to participate, given the continued strong caution towards the upcoming Trump administration. Meanwhile, today being the peak day for earnings reports could lead to an active flow of individual buying. In the timeframe before noon, Takasago Thermal Engineering <1969>, DIC <4631>, and Kyushu Financial Group <7180> are scheduled, followed by Oji Paper <3880> at 1 PM, Toei <9605> and Yokohama Rubbers <5101> at 2 PM, and at 3 PM, Sundrug <9989>, Credit Saison <8253>, Macromill <3978>, Japan Post <6178>, SMC <6273>, Kanpo Life Insurance <7181>, Japan Post Bank <7182>, Concordia <7186>, Akebono Brake <7238>, Ebara <6361>, T&D Holdings <8795>, Asahi <2502>, and Matsukiyo Cocokara <3088>.

■The dollar-yen remains strong, hovering in the 156 yen range before noon.

In the morning of the 14th, the dollar-yen was strong in the Tokyo market, firming from 155.34 yen. The upward trend of US 10-year bond yields strengthened dollar buying, briefly rising to the 156 yen range before noon. Although it lost momentum due to selling around this threshold, dollar selling in the positive zone of the Nikkei average supported the dollar.

The trading range so far has been dollar-yen from 155.34 yen to 156.05 yen, euro-yen from 164.09 yen to 164.66 yen, and euro-dollar from 1.0547 dollars to 1.0568 dollars.

Check stocks for the afternoon session

・Sailor Advertising <2156>, Asua <246A>, etc., 9 stocks hit the daily limit high.

*Includes temporary stopper (indicated price)

The top contributors to the price increase are Fast Retailing <9983> in the first place, and Fanuc Corp <6954> in the second place.

Economic indicators and remarks by important people

[Economic indicators]

・Australia, October: 4.1% (estimate: 4.1%, September: 4.1%).

・Australia, October employment change: +0.0159 million people (estimate: +0.025 million people, September: +0.0641 million people).

[Important Person's Remarks]

・President of Reserve Bank of Australia

"Interest rates are at a sufficiently restrictive level and will be maintained at this level until there is confidence in inflation."

・Nothing in particular

• Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting