The Nikkei Average saw a significant rise, finishing the morning session at 39,180.06 yen, up 667.04 yen (+1.73%) compared to the previous day (estimated volume 1 billion 40 million shares).

On the 2nd, the US stock market was mixed. The Dow was down 128.65 points at 44,782.00 dollars, while the Nasdaq closed up 185.78 points at 19,403.95. This week, adjustments intensified ahead of the important economic indicators such as employment statistics, resulting in mixed trading after the opening. Concerns about rising long-term interest rates, geopolitical risks in the Middle East, and the risk of the French cabinet facing a vote of no confidence led to a soft overall performance of the Dow. Meanwhile, the Nasdaq was supported by technology stocks and maintained a solid performance, updating its past high. The market ended mixed.

Although the US market was mixed, the Tokyo market opened with a bias towards buying due to the rise in technology stocks. The Nikkei Average steadily expanded its gains from the opening bell, recovering to the 39,000-yen range during trading hours for the first time since November 25. Since high-priced semiconductor stocks like tokyo electron ltd. unsponsored adr and advantest were bought, the Nikkei Average was stronger than the TOPIX, and trading volume in the main board market increased to 2.5 trillion yen.

In the stocks adopted by the Nikkei Average, in addition to tokyo electron ltd. unsponsored adr and advantest, semiconductor stocks such as disco, lasertech, and screen hd were also purchased, along with some defense-related stocks like kawasaki heavy and mitsubishi electric corp. unsponsored adr that rose. Additionally, stocks such as kawasaki kisen, fujikura, okuma, softbank group co, and nidec corporation sponsored adr were also bought.

On the other hand, there is no significant movement in the exchange rate, with the dollar staying in the 149 yen range, but stocks benefiting from a strong yen such as Nichirei <2871>, Nissui <1332>, Nisshin Flour Milling <2002>, Japan Airlines <9201>, ANA Holdings <9202> are not performing well. In addition, Sumitomo Pharma <4506>, Sohonet <6526>, ZOZO <3092>, Comsys HD <1721>, and Japan Exchange Group <8697> all decreased.

By sector, marine shipping, nonferrous metals, electric appliances, precision instruments, and metal products increased, while only the electricity & gas and air transport sectors declined.

In the market, there are voices saying that overseas investors are buying futures. Yesterday, the Ministry of Health, Labour, and Welfare suggested a plan to raise the target actual rate of return from the current 1.7% to 1.9% starting from the next fiscal year for the Government Pension Investment Fund (GPIF), which is seen as material. It seems that this might lead to a possibility of GPIF increasing its allocation to stock investments, prompting overseas investors to buy futures in anticipation. In the afternoon session of the Tokyo market, there might be a further increase in the Nikkei average due to continued futures buying by overseas investors. It is worth paying attention to the developments around 2 pm when European investors start to participate.