In the morning of the 19th, there are three points that deserve attention when it comes to trade.

■Interest in cryptocurrency (virtual currency) related stocks is increasing.

■Daikoh revises upwards on 25/5, net profit 0.98 billion yen from 0.66 billion yen.

■Key points in the morning session: Daio Paper, research expenses for FY26 increased by 1.5 times, promoting next-generation material development.

■Interest in cryptocurrency (virtual currency) related stocks is increasing.

On the 19th, the Japanese stock market is likely to have a stagnant market development after starting with a buying trend. On the 18th, the U.S. market saw the NY Dow fall by 55 points, while the Nasdaq rose by 111 points. Amid speculation that the Federal Reserve Board (FRB) will refrain from lowering interest rates at the December Federal Open Market Committee (FOMC) meeting, profit-taking selling was predominant. Tesla's rise pushed up the Nasdaq index. The Chicago Nikkei 225 futures settlement price was 383.40 yen, 80 yen higher than in Osaka. The yen is trading around 154.60 yen to the dollar.

The Nikkei Stock Average is likely to start with a slightly buying-dominant trend from the Chicago futures trading. The Nikkei 225 futures fell to 38,140 yen shortly after starting in the night session, but rebounded as the U.S. market trading began and was bought up to 38,530 yen. Although it softened towards the end, it finished in positive territory, indicating a self-rebound movement against the previous day's decline.

However, Nvidia faced overheating issues with the next-generation semiconductor 'Blackwell' for artificial intelligence (AI), causing concerns about delays and resulting in sales. With upcoming earnings announcements on the 20th and the potential impact on the index's high-tech stocks, autonomous rebound may not be achievable. Although the Nikkei Stock Average fell below the 200-day moving average yesterday, the line is likely to be considered a resistance line in the anticipated self-rebound.

In terms of selection, it seems to be heading towards selection related to the policies of the next Trump administration. Regarding Tesla, it was seen as a material consideration that the next Trump administration is exploring the relaxation of regulations on self-driving cars. In addition, Trump's media company, Trump Media & Technology, was reported to be in the final stages of negotiations for the acquisition of the cryptocurrency trading company Bakkt.

In response to this, Trump Media rose more than 16% and Bakkt (Bakkt HD) surged more than 162%. In the Tokyo market, stocks related to cryptocurrencies, such as Monex Group <8698>, are likely to attract funds from individual investors focusing on price differentials.

■Daikoh revises upwards on 25/5, net profit 0.98 billion yen from 0.66 billion yen.

Daiko <3160> announced a revision of the financial estimates for the fiscal year ending May 2025. The net income has been revised upwards from 0.66 billion yen to 0.98 billion yen. Due to the import bans from various countries related to the ALPS treated water release by Tokyo Electric Power HD <9501>, compensation claims for damages have been filed, and an agreement on the compensation amount has been reached, resulting in a special profit of 0.394 billion yen to be recorded in the second quarter.

Materials of concern in the morning session

- The Nasdaq Composite Index rose (18791.81, +111.69)

- 1 dollar = 154.60-70 yen

- Chicago Nikkei futures rose (38340, +80)

• The SOX index is rising (4888.77, +55.18)

• The VIX index is decreasing (15.58, -0.56)

• US crude oil futures are increasing (69.16, +2.14)

Long-term US interest rates fell.

Active share buybacks

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

• Oji Holdings Corporation <3880> Research and development expenses for the fiscal year 2026 are 1.5 times higher, promoting the development of next-generation materials

• UACJ <5741> Expands Tochigi-Oyama Plant, Deepening commitment to aerospace and defense sectors

NTT <9432> NTT East West to start IOWN utilization services, 800 gigabits per second inter-base communication.

Tohoku Electric Power <9506> to discount electricity bills for February and March next year, with the operation of the Onagawa plant.

Mitsui Fudosan <8801> hosts space industry exchange event with Cross-U established.

Rezonac <4004> sells surface protection film business to San-Ei Kaken.

Itochu <8001> collaborates with Saudi Environmental Infrastructure for joint projects in the Middle East and Africa.

M&A Capy <6080> supports fair M&A, unveils new platform.

Osaka Gas <9532> partners with Marubeni in quality assessment of GHG emission quotas.

NTT <9432> NTT Com introduces AI for cyber defense, provides advice and suggestions through the app.

・H-One <5989> transfers functions of Fukushima-Koriyama plant, improves profitability and growth potential

・Piolax <5988> to close German office by the end of the year

・Okada Iyon <6294> expands outsourcing of small crushing machines, focuses on large machines

・Shimadzu Corporation <7701> invests in bio-power generation startups, expands into the green sector

・Fujitsu <6702> collaborates with German SAP Fioneer in insurance industry DX, standardizing common operations

・NEC <6701> partners with NEC Bio to utilize AI prediction for T-cell receptors in cancer immunotherapy

・Nomura Research Institute <4307> consults on upgrading outdated systems reducing IT costs and risks

・Euglena <2931> expands procurement of renewable fuels, reaches basic agreement with major Asian company

Resonac <4004> introduces an exploration system to optimize the blending of raw materials with AI.

Mitsubishi Chemical G <4188> focuses on semiconductors and other areas, with high-performance materials as a key to growth.

Sumitomo Chemical <4005> strengthens nucleic acid pharmaceuticals, investing in peptides using raw materials.

ENEOS <5020> group's JX Metal advances toward advanced semiconductor equipment at a dedicated site.

AGC <5201> enhances insulation glass performance, test sales targeted for renovations.

☆ Schedule of events in the morning session

・Nothing in particular

・Nothing in particular