In the afternoon of the 3rd, let's focus on the following 3 points in trading.

• The Nikkei average is sharply rising, with semiconductor stocks rising and recovering above 39,000 yen.

• The dollar-yen is slightly firm, approaching 150 yen.

• The top contributors to the price increase are Tokyo Electron <8035>, with Fast Retailing <9983> in second place.

■ The Nikkei average is sharply rising, with semiconductor stocks rising and recovering above 39,000 yen.

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, although there was no significant movement in the exchange rate, which stood at 149 yen per dollar, stocks benefiting from the yen's strength like nichirei, nissui, nisshin flour g, japan airlines, and ana holdings did not perform well. In addition, stocks like sumitomo pharma, socionext, zozo, comsys hd, and japan exchange group declined.

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.

The dollar-yen is slightly firm, approaching 150 yen.

In the morning of the 3rd, the Tokyo market saw a slight firm movement in the dollar-yen pair, rising from 149.49 to 149.99 yen. The decrease in the yield of the US 10-year bond in the overseas market was sluggish, leading to buybacks of the dollar. On the other hand, with the Nikkei Average Stock Price showing strength, selling of yen intensified, pushing up the dollar.

The trading range so far is 149.49 yen to 149.99 yen for the dollar-yen, 156.97 yen to 157.31 yen for the euro-yen, and 1.0485 dollars to 1.0501 dollars for the euro-dollar.

Check stocks for the afternoon session

Media Five <3824>, Japan Enterprise <4829>, etc., 4 stocks hit the daily limit.

*Includes temporary stopper (indicated price)

Top contributors to the price increase are Tokyo Electron <8035>, followed by Fast Retailing <9983>.

Economic indicators and remarks by important people

[Economic indicators]

Monetary base in Japan on Sun, Nov: -0.3% year-on-year (Oct: -0.3%).

Australia, Jul-Sep ordinary balance: -14.1 billion Australian dollars (estimate: -10.9 billion Australian dollars, Apr-Jun quarter: -16.4 billion Australian dollars←-10.7 billion Australian dollars).

[Important Person's Remarks]

- William's NY Federal Reserve President.

"No signs of a recession in the US economy."

"It is important to return the inflation rate to 2%."

"Considering inflation, somewhat restrictive policies are appropriate."

"The direction is to lower interest rates."

Nothing special

At 16:30, Switzerland's November consumer price index (year-on-year forecast: +0.8%, October: +0.6%).