[Nikkei Stock Average and TOPIX (Table)]

Nikkei average; 38287.13; -493.01.

TOPIX; 2681.46; -34.14.

Summary of the start of the afternoon session

In the afternoon, the Nikkei average started slightly lower from the morning close (38260.38 yen) at 38287.13 yen, down 493.01 yen from the previous day. During lunchtime, the Nikkei 225 futures ranged from 38230 yen to 38330 yen in a consolidation phase. The dollar-yen exchange rate was around 1 dollar = 153.80-90 yen, with the yen slightly stronger and the dollar weaker since around 9 a.m. Asian markets saw the Shanghai Composite Index open lower but resilient towards the downside, showing an increase of about 0.3%. On the other hand, the Hang Seng Index in Hong Kong turned higher after a lower morning, rising by about 0.5%.

The Tokyo market in the afternoon started with a slight buying trend compared to the morning close. The Dow Futures, which were weak in the morning, have stabilized at lower levels, and the rebound of the Nikkei average close to 38000 yen in the morning has provided a sense of reassurance. However, some investors are cautious ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes held on November 6-7 (to be released in the early hours of Japan time) and the October U.S. Personal Consumption Expenditures (PCE) Price Index to be announced tomorrow night, choosing to hold back on aggressive buying.

In the sectors, oil & coal products, nonferrous metals, and wholesale trade are among the top sectors in terms of decline, while textiles & apparels, air transportation, and other products are leading in terms of increases.

In the Tokyo Stock Exchange Prime Market, Fujikura <5803>, Lasertec <6920>, Kawasaki Heavy Industries <7012>, Furukawa Electric <5801>, Advantest <6857>, Mercari <4385>, Monex Group <8698>, Mitsui Mining & Smelting <8031>, Nissan Motor <7201>, and IHI <7013> are declining. On the other hand, Mitsui E&S <7003>, Unicharm <8113>, Sumitomo Forestry <1911>, Keisei Electric Railway <9009>, Sanrio <8136>, Nintendo <7974>, Fast Retailing <9983>, and Tokyo Metro <9023> are on the rise.