[Nikkei Stock Average and TOPIX (Table)]

Nikkei Average; 38596.76; -183.38

TOPIX; 2703.90; -11.70

[Sector]: Mining, insurance, banking, transportation equipment, wholesale trade, etc. are the top decliners, while pharmaceuticals, precision instruments, and electric and gas industries rose. The turnover of the Tokyo Stock Exchange Prime includes Laser Tech <6920>, Mirrors HD <8897>, Kawasaki Shipbuilding <9107>, Dai-ichi Life HD <8750>, Recruit HD <6098>, Marubeni <8002>, Mitsui & Co. <8031>, Honda <7267>, SMC <6273>, INPEX <1605>, Nissan Motor <7201>, and Nomura <8604>, all of which fell. Meanwhile, Nitori Holdings <9843>, Rakuten Group <4755>, and Daiichi Sankyo <4568>, among others, have risen.

On the 26th, the Nikkei Average opened with a decline of 183.38 yen at 38596.76 yen, marking a drop for the first time in three days. The US stock market continued to rise on the previous day, the 25th. The Dow average was up 440.06 dollars at 44736.57 dollars, while the Nasdaq closed up 51.19 points at 19054.84. The next president, Trump, nominated a treasury secretary, which alleviated uncertainty and concerns over extreme policies, leading to a rise after the opening. Additionally, reports of the Israeli government holding a cabinet meeting towards a ceasefire agreement with Hezbollah eased concerns about the deterioration of the situation in the Middle East, resulting in a continued rise in the stock market. A drop in long-term interest rates also supported the market, which remained stable throughout the day. The Dow updated its record high for consecutive days.

Today's Tokyo stock market saw early selling. Given the strong rise of over 750 yen due to the continuing increase until yesterday, there were easy profit-taking sell-offs and waiting for a rebound. Furthermore, in the early hours of tomorrow JST, the minutes of the US Federal Open Market Committee (FOMC) meeting (held on November 6-7) will be published, and tomorrow evening the Consumer Price Index (PCE) for October, which is considered important by the US Federal Reserve (FRB), will be announced, leading some to postpone aggressive buying in order to assess these factors. On the other hand, yesterday's rise in major indices in the US stock market supported Tokyo market stock prices. Additionally, the decline in US long-term interest rates in yesterday's overseas market provided reassurance in the Tokyo market. Furthermore, with yesterday's Nikkei Average recovering the 200-day moving average located just below 38600 yen and exceeding the 25-day average in the 38600 yen range, there were views that it was entering a rising market, but selling was dominant at the opening stage.

In terms of sectors, securities, commodities, futures, insurance, oil & coal products, electric appliances, wholesale trade, etc., ranked high in decline rates, while textiles & apparels, warehouse and transportation related, metal products, electric & gas industries, air transportation, etc., ranked high in increase rates. In the top trading volume on the Tokyo Stock Exchange Main Board, Monex Group <8698>, Lasertec <6920>, Hitachi <6501>, Disco <6146>, DeNA <2432>, Mercari <4385>, Tokio Marine <8766>, Mitsubishi Heavy <7011>, Advantest <6857>, Sakura <3778>, Kawasaki Heavy <7012>, Mitsubishi Corporation <8058>, Kansai Electric <9503>, etc., saw declines. On the other hand, Sanrio <8136>, Tokyo Metro <9023>, Mazda Motor Crp <7261>, Nintendo Co Ltd <7974>, etc., experienced increases.