The Nikkei average rebounded for the first time in 4 days. It closed the morning session at 38,842.13 yen, up 306.43 yen from the previous day (+0.80%) with an estimated volume of approximately 1.160 billion shares.

On the 14th, the U.S. stock market experienced a decline. The Dow Jones fell by 207.33 points to 43,750.86, while the Nasdaq closed at 19,107.65, down 123.07 points. The market reacted positively to the decline in long-term interest rates at the opening, followed by a slight increase. However, after the confirmation of persistent inflation in the October Producer Price Index (PPI) and indications of labor market strength in new jobless claims, causing long-term interest rates to rise, the market turned bearish. Federal Reserve Board (FRB) member Kugler mentioned the possibility of forgoing a rate cut, and towards the end, Chairman Powell stated that "the economy is strong and there is no need for an immediate rate cut," leading to an expanded decline.

The Tokyo market started with a buying dominance amid concerns about the U.S. stock market decline and the yen's depreciation. Although the Nikkei briefly recovered above 39,000 yen, buying weakened, leading to a narrowing of gains. Bank stocks like Mizuho ＜8411＞ stood out, resulting in a relatively strong TOPIX market. Trading in the Prime Market expanded to the 2.4 trillion yen level due to continued interest in earnings reports.

In the Nikkei average adopted stocks, Mizuho updated its year-to-date high due to factors such as good performance and shareholder return measures, while bank stocks such as Concordia <7186>, Fukuoka <8354>, and Resona HD <8308> rose. In addition, Nippon Steel <5631>, Disco <6146>, Screen HD <7735>, JGC HD <1963>, and Keyence <6861> also rose, while Kansai Electric Power <9503>, which plummeted yesterday, rebounded.

On the other hand, Dentsu Group <4324> hit the daily lower limit due to factors such as downward revision of full-year performance outlook, while Nexon <3659> and Rakuten Group <4755> continued to decline. Credit Saison <8253> saw a decline despite upgrading its net profit outlook. Asahi <2502> was also sold off due to negative sentiment towards its earnings. In addition, Ebara Corporation <6361>, Panasonic HD <6752>, Fujikura <5803>, Kubota <6326>, among others, declined.

In terms of global sectors, electrical utilities, gas, marine shipping, transportation equipment, mining, and insurance industries rose, while only the services, qitabankuai financials, and securities and commodity futures trading sectors declined.

The exchange rate is progressing towards a stronger dollar and weaker yen, reaching the mid-156 yen per dollar level. Due to expectations regarding the upcoming Trump administration, the Dollar Index has risen to the 106.6 level, continuing its strong stance. There is a delicate period with uncertainties about the future Secretary of the Treasury for the Trump administration, making it challenging for interventions by the government and Bank of Japan. However, the stock market does not necessarily follow the belief of 'weaker yen equals buying stocks,' and does not provide tailwinds to export-related stocks. With the Nikkei average struggling in the afternoon sessions, today is likely to see a downside-heavy afternoon session.