[Nikkei Average Stock Price・TOPIX (Table)]

Nikkei Average; 40107.18; +539.12

TOPIX; 2795.68; +28.90

[Afternoon Market Overview]

In the afternoon session, the Nikkei Average started at 40107.18 yen, up 539.12 yen from the previous day, further extending the gains from the previous close (40074.56 yen). During lunchtime, the Nikkei 225 Futures fluctuated in a range between 40160 yen and 40270 yen. The dollar-yen exchange rate is at 1 dollar = 157.60-70 yen, showing about a 10 yen appreciation of the yen and depreciation of the dollar since around 9 am. In Asia, while the Shanghai Composite Index has shown a firm bottom and is up about 0.5%, the Hong Kong Hang Seng Index briefly turned down but later recovered into positive territory, rising about 0.2%.

The Tokyo market in the afternoon began lightly with buyers leading compared to the previous close. There are suggestions that positive news regarding corporate transformations, such as the management integration of Honda and Nissan, and the TOB by Nidec Corporation Sponsored ADR for Makino, has boosted investor sentiment. On the other hand, the Nikkei Average has seen an increase of over 800 yen in the four trading days leading up to yesterday, leading to cautiousness about further upward movement.

In terms of sectors, Wholesale Trade, Pharmaceutical, and Iron & Steel are among those with the highest increases, while Mining and Rubber Products are declining. In terms of trading volume on the Tokyo Stock Exchange Main Board, DeNA <2432>, Nomura Micro <6254>, Socionext <6526>, Sakura <3778>, Nidec Corporation Sponsored ADR <6594>, IHI <7013>, Sekisui Chemical <4204>, Rakuten <4755>, Renesas <6723>, and Mitsui E&S <7003> are all performing well. Meanwhile, Nissan <7201>, Mitsubishi Motors <7211>, INPEX <1605>, JT <2914>, Bridgestone Corporation Unsponsored ADR <5108>, and NYK Line <9101> are declining.