In the afternoon of the 15th trading, the market should focus on the following three points.

・The Nikkei average rebounded for the first time in 4 days, with gains in bank stocks but resistance at higher levels.

・The dollar-yen remains sluggish due to pressure on the yen's depreciation in Japan.

・Top contributors to the increase are Fast Retailing ＜9983＞ in first place, while Tokyo Electron ＜8035＞ is second.

■The Nikkei average rebounded for the first time in 4 days, with gains in bank stocks but resistance at higher levels.

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.

■ The dollar-yen pair struggles, as Japan aims to limit the yen's depreciation

On the morning of the 15th in the Tokyo market, the dollar-yen pair struggled. It rose from 156.22 yen to 156.75 yen, then slowed down to the 156.30 yen range. With the Nikkei average stock price showing strength, it is inclined towards selling yen. Additionally, the increase in US 10-year bond yields strengthened dollar buying, but Japan's efforts to limit yen depreciation weakened dollar buying.

The trading range so far is as follows: the dollar-yen pair ranges from 156.22 yen to 156.75 yen, the euro-yen pair ranges from 164.51 yen to 165.03 yen, and the euro-dollar pair ranges from 1.0523 dollars to 1.0542 dollars.

Check stocks for the afternoon session

- Ivy Company<3920>, THECO<4255>, and 13 other stocks hit the daily price limit.

*Includes temporary stopper (indicated price)

The top contributor to the price increase is Fast Retailing <9983> and the second is Toto Electrical Industries <8035>.

Economic indicators and remarks by important people

[Economic indicators]

- Japan's GDP for the first preliminary report of July-September period: +0.9% on a quarter-to-quarter basis (Estimate: +0.7%, April-June quarter: +2.2%←+2.9%).

- China's industrial output for October grew by +5.3% compared to the previous year (Estimate: +5.6%, September: +5.4%).

- China's retail sales revenue for October increased by +4.8% compared to the previous year (Estimate: +3.8%, September: +3.2%).

[Important Person's Remarks]

・Minister of Finance Kato

The current foreign exchange market is one-sided, with sudden and drastic movements.

Closely monitor the trends in the foreign exchange market with a very high level of tension.

Take appropriate action against excessive movements in the foreign exchange market.

In the US foreign exchange report, we will continue to strive for appropriate responses.

- 13:30 September industrial production revised value (flash: month-on-month +1.4%)

At 16:00, the preliminary GDP figures for the UK from July to September (year-on-year forecast: +1.0%, April to June: +0.7%).

At 16:00, the UK's industrial production in September (month-on-month forecast: +0.1%, August: +0.5%).

At 16:00, the UK's trade balance in September (expected: -15.8 billion pounds, August: -15.06 billion pounds).