[Nikkei Stock Average and TOPIX (Table)]
Nikkei average; 38,274.22; +220.55
TOPIX; 2,656.14; +11.88
[Sector]: Mining, insurance, banking, transportation equipment, wholesale trade, etc. are the top decliners, while pharmaceuticals, precision instruments, and electric and gas industries rose. The turnover of the Tokyo Stock Exchange Prime includes Laser Tech <6920>, Mirrors HD <8897>, Kawasaki Shipbuilding <9107>, Dai-ichi Life HD <8750>, Recruit HD <6098>, Marubeni <8002>, Mitsui & Co. <8031>, Honda <7267>, SMC <6273>, INPEX <1605>, Nissan Motor <7201>, and Nomura <8604>, all of which fell. Meanwhile, Nitori Holdings <9843>, Rakuten Group <4755>, and Daiichi Sankyo <4568>, among others, have risen.
On the 5th, the Nikkei average started trading up 220.55 yen at 38,274.22 yen, rebounding for the first time in 3 days. In the Tokyo market, following the U.S. stock market on the first day of the 3-day weekend, the Dow Jones Industrial Average rose by 288.73 points, and the Nasdaq rose by 144.77 points. Despite the rise in long-term interest rates, expectations of rate cuts following employment statistics and strong corporate earnings supported stock prices. On the 4th, the Dow Jones Industrial Average fell by 257.59 points, and the Nasdaq fell by 59.93 points. Pre-closing sales were seen due to uncertainty ahead of the presidential election, leading to a decline shortly after the market opened. The Dow remained soft throughout the day. In addition to the Nasdaq being supported by a decline in long-term interest rates, the rise of Nvidia (NVDA) provided support from lower levels, leading to a halt to the decline by the end of the day.
Buying led the Tokyo stock market today. While major indices fell in the US stock market yesterday, the Tokyo market felt reassured with the Dow Jones Industrial Average rising by 0.07% over the past 2 trading days and the Nasdaq Composite Index rising by 0.47% over the same period. Furthermore, as the Nikkei average fell over 1,000 yen at the end of last week, it was easier for investors to see this as a buying opportunity. On the other hand, with today marking the US presidential election and elections in both houses of Congress, and important events such as the Federal Open Market Committee (FOMC) announcement on the 7th, there were investors hesitant to make aggressive purchases as they wanted to assess these developments. Also, as reported in yesterday's Nihon Keizai Shimbun about the slowdown in the manufacturing industry, expectations for the October-December period earnings slightly diminished, but buying dominated at the opening. The TSE will extend the trading hours for cash stock from 3:00 p.m. to 3:30 p.m. starting today.
By sector, mining, precision instruments, securities commodity futures, nonferrous metals, and insurance were among the top gainers, while other products, electrical and gas, air transportation, services, and pharmaceuticals were among the top losers. In the top turnover at TSE Prime, Sumitomo Electric Industries <5802>, Sanrio <8136>, Nomura <8604>, Ibiden <4062>, Kyocera <6971>, Panasonic HD <6752>, Disco <6146>, DeNA <2432>, TDK <6762>, Kubota <6326>, Fanuc <6954>, Fast Retailing <9983>, HOYA <7741>, Itochu <8001>, and others were up. On the other hand, Astellas Pharma <4503>, AGC <5201>, Mitsubishi Electric <6503>, Nintendo <7974>, Mitsubishi Shoji <8058>, Recruit HD <6098>, Mitsui Bussan <8031>, Renesas <6723>, NTT <9432>, Screen HD <7735>, Daiichi Sankyo <4568>, Hitachi <6501>, and OLC <4661> were down.
