In the morning session of the 15th trading day, the following three points should be noted.

■ SoftBank Group supports the Nikkei average type

■ Mitsubishi UFJ, 2nd quarter operating profit increased by 37.3% to ¥1,756.9 billion, announces share buyback

■ Highlights of the morning session: Fujitsu, decarbonization of the supply chain pro, data collaboration with 12 domestic and foreign companies

■ SoftBank Group supports the Nikkei average type

In the Japanese stock market on the 15th, after starting with a buying bias, it seems that stability will be conscious even though the firmness is maintained. On the 14th, the US market saw the Dow Jones Industrial Average fall by 207 points, and the Nasdaq by 123 points. In October, the US Wholesale Price Index (PPI) confirmed persistent inflation, and the strength of the labor market was shown by the number of initial jobless claims, leading to profit-taking sell-offs as long-term interest rates rose. In addition, Federal Reserve Board (FRB) Director Kugler mentioned the possibility of deferring rate cuts, and Chairman Powell indicated that there is no immediate need for rate cuts, which further widened the decline. The Chicago Nikkei 225 futures settlement price was 390 yen higher than Osaka at 38,970 yen. The yen is trading around 156.20 yen to the dollar.

The Nikkei average stock price is likely to start from a buying-dominant development, transitioning from a convergence with Chicago futures. Although the US market declined, there was caution about overheating following President Trump's victory in the election, making it easy for profit-taking sell-offs to enter. While major stock indices declined, the drop in the semiconductor SOX index remained modest, making it likely to be conscious of repurchasing high-tech stocks from rebalancing movements.

Furthermore, ASML Holding eased concerns by maintaining its revenue forecast for 2030, despite downwardly revising the revenue outlook for the fiscal year ending December 2025 last month, leading to buying. It is expected that SoftBank Group <9984> and other high-impact index-sensitive stocks will be prone to repurchasing, which will likely support the Nikkei average stock price.

In addition, as the earnings reports have passed the peak, institutions are likely to move more freely. Furthermore, the earnings announcements made after the close of trading on the 14th have attracted attention, such as Japan Post Insurance＜7181＞, FREE＜4478＞, Nishitetsu＜9031＞, TREEHD＜9247＞, AnyMind＜5027＞, Proclea HD＜7384＞, M-Up＜3661＞, Oisix＜3182＞, Toho Plastech＜5975＞, Arent＜5254＞, NetPro HD＜7383＞, Macromill＜3978＞, EnJapan＜4849＞, Genie＜6562＞, and others.

■ Mitsubishi UFJ, 2Q operating profit up 37.3% to 1 trillion 756.9 billion yen, announces share buyback.

Mitsubishi UFJ＜8306＞ announced its second quarter results for the fiscal year ending March 2025, with operating revenue increasing by 21.1% compared to the same period of the previous year to 6 trillion 860.2 billion 77 million yen, and operating profit up by 37.3% to 1 trillion 756.9 billion 26 million yen. They also upwardly revised the net profit for the fiscal year ending March 2025 from 1 trillion 500 billion yen to 1 trillion 750 billion yen. Strong performance in the customer segments, improved interest margins due to the rise in yen interest rates, and the sale of held shares contributed. In addition, the annual dividend plan has been increased from 50 yen to 60 yen per share. Moreover, they announced a share buyback of up to 0.2 billion 30 million shares (1.96% of the total number of issued shares excluding treasury shares) and 300 billion yen.

Materials of concern in the morning session

- 1 Dollar = 156.30-40 Yen

Chicago Nikkei futures are rising (38970, +390).

US crude oil futures are rising (68.70, +0.27).

Active share buybacks

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

Fujitsu <6702> will decarbonize its supply chain with a consortium of 12 domestic and overseas companies for data collaboration.

KDDI <9433> competes for fintech supremacy with mega banks, deepening collaboration with ICT.

LIKE <2462> Japan Life Insurance invests in IT to solve childcare challenges.

Shinko Shoji <8141> invests 10 billion yen in growth, collaborating on semiconductors and AI-related initiatives.

Kasumigaseki Capital <3498> establishes a refrigerated automated warehouse in Aomori with excellent access to Hachinohe Port and Misawa Airport.

Tanabe Kogyo <1828> focuses on large-scale plant construction, aiming for an operating profit of 5.6 billion yen for the fiscal year ending March 2030.

Yokohama Rubber <5101> closes Israeli factory, leading to decreased competitiveness in agricultural machinery tires.

Dexerials Co., Ltd. 4980 strengthens European operations by investing in car equipment in Germany.

Nisshin Chemical Co., Ltd. 6293 President Hojitsu Yoda emphasizes "Taking the initiative in the USA and India."

SoftBank Group Corp. 9984 strengthens AI development support in Japan through collaboration with NVIDIA in the USA.

Renesas Electronics Corporation 6723 plans to mass-produce the 5th generation SoC in 2027 for software-defined vehicles.

Toray Industries Inc. 3402 launches reverse osmosis membrane to produce ultra-pure water from treated wastewater, doubling the removal rate of urine.

Tokyo Gas Co., Ltd. 9531 aims to strategically allocate human resources and is preparing for the full-scale operation of the system.

☆ Schedule of events in the morning session

At 08:50, the first preliminary report of the GDP for the July-September period (expected year-on-year growth: +0.7%, for the April-June period: +2.9%).

At 11:00, the industrial production for October in China (expected year-on-year growth: +5.6%, September: +5.4%).

At 11:00, the retail sales revenue for October in China (expected year-on-year growth: +3.8%, September: +3.2%).