In the afternoon trade on the 12th, attention should be focused on the following three points.

・The Nikkei average rose significantly for the fourth consecutive day, temporarily recovering to the 40,000 yen level on the rise of US tech stocks.

・The dollar-yen exchange rate showed signs of decline restraining, maintaining high US interest rates.

・The top contributor to rising prices was Advantest <6857>, and the second place was Fast Retailing <9983>.

■The Nikkei average rose significantly for the fourth consecutive day, temporarily recovering to the 40,000 yen level on the rise of US tech stocks.

The Nikkei average rose significantly for the fourth consecutive day, finishing the morning session at 39,881.10 yen, up 508.87 yen (+1.29%) from the previous day, with an estimated Volume of 0.9 billion 90 million Stocks.

On the 11th, the US stock market was mixed. The Dow average fell by 99.27 dollars to 44,148.56 dollars, while the Nasdaq rose by 347.65 points to close at 20,034.89. The consumer price index (CPI) for November remained within expectations, leading to buying in anticipation of additional rate cuts at the December Federal Open Market Committee (FOMC) meeting, which caused a rise after the opening. The Dow turned down due to profit-taking. The Nasdaq expanded its gain in the latter half of the trading session, led by buying on rate cut expectations and buying in tech stocks like Alphabet, setting a new all-time high. The market ended mixed.

Following the significant rise in the Nasdaq, the Tokyo market began trading with a bias toward buying. With tech stocks leading the buying, the Nikkei average was observed to reach the 40,000 yen level for the first time in about two months since October 15 during trading hours. Ahead of tomorrow's special settlement value (SQ value) calculation for futures and Single Option in December, there were speculative trades in the futures market. After a round of buying, the Nikkei average became slightly heavier on the upside, but it remained in a sideways movement around the 39,900 yen level.

In the Nikkei average adopted stocks, Fujikura Ltd. <5803> significantly continued to rise, and Furukawa Electric Co. <5801> was also bought. Additionally, Advantest Corp. <6857> rose following the Nasdaq's increase and NVIDIA's rebound. Furthermore, defense-related stocks such as Mitsubishi Electric Corp. Unsponsored ADR <6503>, Japan Steel Works <5631>, and Mitsubishi Heavy Industries <7011> were also in demand. Sony Group Corp <6758> updated its all-time high for consecutive days. Companies such as Aeon <8267>, Shimizu Corporation <1803>, Konica Minolta <4902>, and Idemitsu Kosan <5019> were purchased.

On the other hand, Nissan Motor Co. <7201> was sold amid views that there are many challenges, as it announced personnel changes including the CFO as part of its restructuring efforts, which weakened automotive-related stocks such as Mitsubishi Motors <7211>, MAZDA MOTOR CRP <7261>, and Honda <7267>. Additionally, due to reports of construction defects found in a condominium in Setagaya ward, the business owner, Tokyu Fudosan Holdings <3289>, faced difficulties after proposing to residents a buyout. Other stocks sold included SUMCO <3436>, Yamaha <7951>, Yaskawa Electric <6506>, JFE Holdings <5411>, and SHARP CORP <6753>.

By Global Sectors, Services, Petroleum, Coal, Nonferrous Metals, Electric Appliances, and Precision Instruments increased, while only Iron & Steel fell.

During trading hours, the November SQ value cleared 39,901.35 yen and surpassed the 40,000 yen mark for the first time in two months, leading the market to sense a slight sense of accomplishment. With the movement of China Connect, which had been volatile due to policy expectations, also stabilizing, a stronger trend of profit-taking is expected in the latter part of the Tokyo market. The upper level of the Nikkei average appears to be heavy, and the increase may be slightly reduced.

■ The dollar-yen is hesitant to decline, maintaining high U.S. interest rates.

In the Tokyo market on the morning of the 12th, the dollar-yen hesitated to decline. On the previous day, due to a strong overseas market, profit-selling of dollars was prioritized, dropping from 152.45 yen to 151.95 yen. However, the yield of U.S. 10-year bonds maintained an upward trend. Also, with the sell-off of yen due to the rise in Japanese stocks, the dollar slightly rebounded by noon.

So far, the trading range has been: dollar-yen from 151.95 yen to 152.45 yen, euro-yen from 159.65 yen to 160.04 yen, euro-dollar from 1.0492 dollars to 1.0508 dollars.

■ Stocks to check in the latter half.

Three stocks, including GreenBee <3913> and Silver Egg Technology <3961>, hit the limit up.

This includes the temporary limit high (response value).

・The top contributor to rising prices was Advantest <6857>, and the second place was Fast Retailing <9983>.

Economic Indicators and Key Person Statements

Economic Indicators

Australia's unemployment rate for November: 3.9% (Financial Estimates: 4.2%, October: 4.1%).

Australia's change in number of employed for November: +0.0356 million people (Financial Estimates: +0.025 million people, October: +0.0121 million people ← +0.0159 million people).

Key Person Statements

・Bank of Canada

"In the future, we will review whether additional interest rate cuts are necessary."

"With significant interest rate cuts, support growth and keep CPI around 2%."

< Domestic >

None

< Overseas >

None