In the afternoon trading on the 21st, three points will be highlighted.

The Nikkei Average continues to rise, experiencing volatile movements due to tariff reports.

The dollar-yen exchange rate is struggling to rise, faltering after an initial buying surge.

• The top contributors to the price increase are Tokyo Electron <8035>, with Fast Retailing <9983> in second place.

The Nikkei Average continues to rise, experiencing volatile movements due to tariff reports.

The Nikkei Average is up. It ended the morning session at 38,951.77 yen, up 49.27 yen (+0.13%) from the previous day (with an estimated Volume of 0.8 billion 50 million shares).

The US market was closed on the 20th due to the Martin Luther King Jr. Day holiday. The Tokyo market started trading with a buying advantage due to the restraint of comments regarding tariffs during President Trump's inauguration, which attracted attention. The Nikkei Average even expanded its upward range to 39,238.21 yen, but the mood changed drastically as it was reported just before 10 AM that "tariffs of 25% will be implemented on Mexico and Canada from February 1," leading to a decline in the Nikkei Average. After experiencing volatility, it settled into a trading range at the previous day's closing level.

Among the stocks included in the Nikkei Average, Nintendo <7974> rebounded due to the reaction to the decline, and other private railway stocks such as Odakyu Electric Railway <9007> and Tobu Railway <9001> also performed well. Additionally, some semiconductor stocks like Socionext <6526>, Renesas Electronics <6723>, and Tokyo Electron Ltd. Unsponsored ADR <8035> were also bought. Other stocks such as Sumitomo Pharma <4506>, Disco <6146>, Mitsubishi Chemical Group <4188>, and Omron <6645> also rose.

On the one hand, concerns over trade friction due to Trump tariffs have resulted in weak performance for export-related stocks such as Kawasaki Heavy Industries <7012>, IHI <7013>, Mitsubishi Heavy Industries <7011>, MAZDA MOTOR CRP <7261>, SUBARU CORP Unsponsored ADR <7270>, and Konica Minolta <4902>. Additionally, with Japan's long-term interest rates declining slightly, financial stocks such as Dai-ichi Life Holdings <8750>, Shizuoka Financial Group <5831>, and Sumitomo Mitsui Trust Holdings <8309> have also been lackluster.

By industry, Other Products, Warehousing & Transportation, Textiles, Marine Shipping, and Land Transportation have risen, while Mining, Petroleum & Coal, Insurance, Electricity & Gas, and Banks have declined.

With the Start of the Trump administration, the Nikkei Average experienced fluctuations. Expectations for deregulation and caution regarding tariffs are intertwining, and in the latter half of the Tokyo market, there may be instances where the Nikkei Average swings up and down due to Trump's strong influence and reporting. The exchange rate has also dipped to around 154 yen per dollar, with a stronger yen and weaker dollar likely weighing on Japanese stocks.

■ The dollar-yen struggled to gain momentum, faltering after the initial buying.

In the Tokyo market on the morning of the 21st, the dollar-yen struggled to maintain its strength. Domestic buying led the way, driving the price up from 154.90 yen to 156.22 yen. However, it faltered after this buying wave. Additionally, as the Nikkei Average turned downwards, selling of the yen receded and the dollar fell below 155 yen, declining toward the low point reached earlier in the morning.

The trading range so far is as follows: dollar-yen from 154.90 to 156.22 yen, euro-yen from 160.97 to 162.14 yen, and euro-dollar from 1.0353 to 1.0434 dollars.

■ Stocks to check in the latter half.

・Technisco <2962>, Liberta <4935>, and two other stocks reached the daily limit up.

This includes the temporary limit high (response value).

• The top contributors to the price increase are Tokyo Electron <8035>, with Fast Retailing <9983> in second place.

Economic indicators and remarks by important people

[Economic indicators]

・ Nothing special

Key Person Statements

Finance Minister Kato.

The new USA administration is under close observation with high interest in how it will emerge through trade, finance, and other Root Inc.

"It is expected that appropriate monetary policy operation will be conducted at the Bank of Japan."

"The specific details are entrusted to the Bank of Japan."

< Domestic >

・ Nothing special

・16:00 UK: December unemployment rate (November: 4.6%)