In the afternoon of the 9th, the following three points deserve attention in trading:

The Nikkei average continues to decline, and after the sell-off, there is a wait-and-see approach due to the US market being closed.

The Dollar-Yen is weak due to falling US interest rates and declining Japanese stocks.

The top contributor to the decline is Tokyo Electron Ltd. Unsponsored ADR <8035>, and the second place goes to Advantest <6857>.

The Nikkei average continues to decline, and after the sell-off, there is a wait-and-see approach due to the US market being closed.

The Nikkei average has continued to fall. It ended the morning session at 39,678.93 yen, down 302.13 yen (–0.76%) from the previous day, with an estimated volume of 0.9 billion 10 million shares.

The US market on the 8th was mixed. The Dow average rose by 106.84 dollars to 42,635.20 dollars, while the Nasdaq fell by 10.80 points to close at 19,478.88. Following mixed results in employment-related indicators, the market was steady after opening. On the 9th, due to the mourning day for former President Carter, the stock market will be closed, and ahead of the upcoming employment statistics release this weekend, there was a leading adjustment selling. Furthermore, selling due to rising long-term interest rates caused a decline. The Federal Reserve Board (FRB) presented the minutes of the Federal Open Market Committee (FOMC) meeting (held in December), indicating that participants expect steady growth, which caused the market to stabilize. Towards the end, the Dow recovered to positive territory, while the Nasdaq ended with a slight decline, resulting in a mixed close.

US stocks were mixed, but influenced by the decline of American technology stocks, the Tokyo market opened with a slight selling bias. The stock of Advantest <6857>, which had set a record high, fell into negative territory compared to the previous day, leading to a somewhat broader decline in the Nikkei average. However, with the exchange rate hovering around 158 yen to the dollar, the weak-yen and strong dollar provided support, causing the Nikkei average to show some resistance around the 39,600 yen level.

Among the stocks included in the Nikkei average, Advantest, Tokyo Electron Ltd. Unsponsored ADR <8035>, Lasertec <6920>, and others were sold, while marine shipping stocks such as Kawasaki Kisen Kaisha <9107>, Nippon Yusen Kabushiki Kaisha <9101>, and Mitsui O.S.K. Lines <9104> were also weak. Additionally, automotive stocks like Mitsubishi Motors <7211>, MAZDA MOTOR CRP <7261>, NISSAN MOTOR CO <7201>, Hino Motors <7205>, and Honda <7267> were under selling pressure as well. Furthermore, Mitsui & Co., Ltd. <8031>, JTEKT <6473>, and Omron <6645> also saw declines.

On the other hand, bank stocks such as Fukuoka <8354>, Chiba Bank <8331>, Shizuoka Financial Group <5831>, and Mitsubishi UFJ <8306> were bought, influenced by rising long-term interest rates, while SOMPO Holdings <8630> and Nomura <8604>, which were sold the previous day, rebounded. In addition, Chugai Pharmaceutical <4519>, Ebara <6361>, TOPPAN Holdings <7911>, Fujikura <5803>, and Credit Saison <8253> were also purchased.

By industry, marine shipping, transportation equipment, wholesale, precision instruments, and mining sectors saw declines, while only four sectors—other products, pharmaceuticals, food, and textiles—experienced increases.

Tonight, the US market is closed due to the state funeral of former President Carter, so trading in the Tokyo market will likely decrease in the afternoon session. With the announcement of US employment statistics expected tomorrow, trades related to position adjustments may be the main focus. While there is low caution against a further decline in the afternoon session due to reduced participation, recovery above 40,000 yen seems challenging. The Nikkei average is expected to hover around the 39,700 yen level.

The dollar-yen is weak due to falling US interest rates and declining Japanese stocks.

In the Tokyo market on the morning of the 9th, the dollar-yen formed a weak trend, declining from 158.39 yen to 157.93 yen. With the drop in the US 10-year bond yield, the dollar was slightly sold, leading to a weaker exchange rate against the yen. On the other hand, Japan's strong wage statistics have shifted the market toward a trend of declining stocks and a stronger yen, affecting the Bank of Japan's monetary policy.

The trading range so far has been 157.93 yen to 158.39 yen for the dollar-yen, 163.00 yen to 163.42 yen for the euro-yen, and 1.0305 dollars to 1.0319 dollars for the euro-dollar.

■ Stocks to check in the latter half.

Four stocks, including Chordia Therapeutics <190A> and BTM <5247>, reached the maximum limit up.

This includes the temporary limit high (response value).

The top contributor to the decline is Tokyo Electron Ltd. Unsponsored ADR <8035>, followed by Advantest <6857>.

Economic indicators and remarks by important people

[Economic indicators]

For November, the total cash salary amount in Japan was +3.0% year-on-year (Financial Estimates: +2.7%, October: +2.2%).

For November, Australia's retail revenue increased by +0.8% compared to the previous month (Financial Estimates: +1.0%, October: +0.6%).

For November, Australia's trade balance was +7.079 billion Australian Dollar (Financial Estimates: +5.55 billion Australian Dollar, October: +5.67 billion Australian Dollar ← +5.953 billion Australian Dollar).

• China • December Consumer Price Index: +0.1% year-on-year (Forecast: +0.1%, November: +0.2%)

• China • December Producer Price Index: -2.3% year-on-year (Forecast: -2.4%, November: -2.5%)

Key Person Statements

• US Treasury Secretary Yellen

"Corona-related expenditures may have slightly pushed inflation up."

"No disinflation progress seen in the past two months, but confident that inflation remains in a slowing trend."

< Domestic >

・ Nothing special

・16:00 Germany: November Industrial Production (Financial Estimates: month-on-month +0.5%, October: -1.0%)