In the afternoon session on the 24th, we want to focus on the following three points.

The Nikkei index fell back, showing a lack of direction in a market influenced by shortened Overseas trading.

The dollar-yen pair lost momentum due to a decline in Japanese stocks.

The top contributor to the decline is ADVANTEST <6857>, and the second is TDK <6762>.

The Nikkei index fell back, showing a lack of direction in a market influenced by shortened Overseas trading.

The Nikkei Average fell back, finishing the morning session at 39,055.35 yen, down 105.99 yen (-0.27%) from the previous day (Volume estimated at 1 billion 10 million shares).

On the 23rd, the US stock market continued to rise. The Dow Inc increased by 66.69 dollars to 42,906.95 dollars, and the Nasdaq closed up 192.29 points at 19,764.88. Concerns over the decline in the Consumer Confidence Index led to mixed trading after the opening. The Dow fell as long-term interest rates rose due to a retreat from expectations of rapid rate cuts by the Federal Reserve Board (FRB). The Nasdaq remained firm due to buying in the tech sector expected during the Santa Claus rally, expanding its gains toward the end of the session, lifting the overall market. With participants limited ahead of the Christmas holiday, the Dow also recovered into positive territory before closing.

In response to the rise in the US market, the Tokyo market started with a buying advantage. The Nikkei Average started in positive territory compared to the previous day but slowed after an initial surge and briefly fell below 39,000 yen. Trading was thin as many Western investors entered Christmas holidays, leading to a lack of direction and fluctuations around the 39,000 yen level.

Among the Nikkei Average stocks, Nissan Motor Co, which announced discussions on a management integration with Honda, was sold off. Stocks like Fujikura, Furukawa Electric, and Sumitomo Electric, which are in the wire sector, were also weak. Furthermore, defense-related stocks such as IHI and Japan Steel Works faced selling pressure. Additionally, companies like Renesas Electronics, TDK, and Alps Alpine also experienced selling.

On the other hand, Honda saw a significant increase following the setting of a 1.1 trillion yen Share Buyback acquisition limit, while stocks like SUBARU CORP Unsponsored ADR, Mitsubishi Motors, and MAZDA MOTOR CRP also rose. Additionally, bank stocks like Shizuoka Financial Group, Resona Holdings, Sumitomo Mitsui Banking, and Aozora Bank also increased.

By Global Sectors, Nonferrous Metals, Services, Information & Communications, Precision Instruments, and Electric Appliances have decreased, while Electric & Gas, Transportation Equipment, Marine Transportation, Iron & Steel, and Bank have increased.

In the overseas markets tonight, the markets in the UK, France, and the USA are expected to have reduced trading before the Christmas holiday, leading to quieter trading in the afternoon session compared to the previous day. The exchange rate is also expected to remain stable around 157 yen per dollar, indicating that the Nikkei Average will likely experience minor fluctuations around the 39,000 yen mark in the afternoon session.

■ The dollar-yen has stalled, with Japanese stocks declining.

On the morning of the 24th in the Tokyo market, the dollar-yen rose from 157.05 to 157.37, but stalled near the morning low. Profit-taking from the previous day's dollar buying strengthened, making the 157 yen level heavy. Additionally, yen buying due to the Nikkei index's decline is pressuring the dollar.

The trading range up to this point is as follows: the dollar-yen is from 157.05 to 157.37, euro-yen is from 163.23 to 163.59, and euro-dollar is from 1.0395 to 1.0408.

■ Stocks to check in the latter half.

Six stocks, including Beauty Kadang Holdings and Yume Tenbou, reached the limit up.

This includes the temporary limit high (response value).

The top contributor to the decline is ADVANTEST <6857>, and the second is TDK <6762>.

Economic indicators and remarks by important people

[Economic indicators]

USA, November Chicago Fed National Activity Index: -0.12 (Financial Estimates: -0.15, October: -0.50 ← -0.40).

USA, November Durable Goods Orders preliminary: MoM -1.1% (Financial Estimates: -0.3%, October: +0.8% ← +0.3%).

USA, November Durable Goods Orders (excluding Transportation Equipment) preliminary: MoM -0.1% (Financial Estimates: +0.3%, October: +0.2%).

・USA November manufacturing shipments of capital goods (excluding non-defense aircraft) preliminary value: +0.5% month-on-month (forecast: +0.2%, October: +0.4% revised from +0.3%).

Key Person Statements

・Summary of the Bank of Japan's monetary policy meeting minutes (October 30-31).

“Heightened uncertainty domestically and internationally, policies to be more cautious” (one committee member).

“Maintain a gradual rate increase while keeping real interest rates below the natural interest rate” (one committee member).

“If the economic and price outlook is realized, a basic consensus on easing adjustments is shared.”

・Summary of the Reserve Bank of Australia's December board meeting minutes.

“A sufficiently restrictive policy is necessary until confidence in inflation is achieved.”

A minimum tolerance level exists despite inflation rates exceeding targets for an extended period.

Since the last meeting, trust in inflation remains, and risks still exist as before.

< Domestic >

・14:00　Indicators to capture the core inflation rate by the Bank of Japan.

・The US stock market is undergoing shortened trading.