In the morning session of the 4th, attention should be paid to the following three points.

■ Focus on buying opportunities.

■ Q.P. Corporation, 3Q operating profit increased by 123.5% to 29.8 billion yen.

■ Highlighted materials for the morning session: Tokyo Century invests 1 trillion yen in aircraft, acquires 120 planes for lease, and actively invests in expanding passenger demand.

■ Focus on buying opportunities.

In the Japanese stock market on the 4th, although a stalemate is possible, a market environment with strong buying interest on dips is expected. On the 3rd, the U.S. market saw the Dow Jones Industrial Average down 184 points and Nasdaq down 6 points. The ISM Non-Manufacturing Business Activity Index rose more than expected, prompting buying based on improved economic outlook. However, concerns about geopolitical risks rose as U.S. President Biden hinted at retaliation against Iran in response to Israel and the potential for attacks on oil facilities, leading to sell-offs in response to higher oil prices and geopolitical risks. The settlement price of the Chicago Nikkei 225 futures was 25 yen higher than Osaka at 38,625 yen. The yen remained around 146.80 yen to the dollar in the foreign exchange market.

The Nikkei Stock Average is likely to start off with little movement as it follows the Chicago futures market. Due to caution towards geopolitical risks and a wait-and-see approach on the U.S. employment statistics for September released on the 4th, it is expected to be a market scenario where trends are difficult to identify. Particularly with news related to the Middle Eastern situation potentially triggering significant futures-driven fluctuations, short-term trading is likely to be predominant.

On the other hand, in the U.S., Nvidia has risen by over 3% and once again exceeded the 75-day moving average. Micron Technology, which had been consolidating recently, is also being bought, serving as a significant support for high-tech stocks with index impacts. Additionally, due to increased geopolitical risks leading to sharp gains in oil futures, funds looking for short-term gains are likely to focus on resource stocks and defense-related stocks.

On the 25th, the Nikkei average stock price surpassed the 75-day moving average line with a rebound yesterday, amid the 200-day moving average being considered as a resistance level. It is believed that the area around 38,260 yen where the line is located will function as a support line, leading to a stance of targeting dips during the adjustment phase. However, it is unlikely to see an active upward trend, so it is wise to focus on short-term trades.

■Kewpie, 3Q operating profit increased by 123.5% to 29.8 billion yen

Kewpie <2809> announced that the third quarter performance for the November 2024 fiscal year showed a 7.4% increase in revenue compared to the same period of the previous year, reaching ¥360.9 billion, with an operating profit of ¥29.815 billion, a 123.5% increase. The revenue increase was due to sustained growth overseas, recovery in sales of core domestic condiments and side dishes, and price adjustments leading to increased unit prices. The operating profit growth was driven by increased sales of egg products, mitigation of the impact of rising main raw material costs, and profit expansion from overseas growth.

Materials of concern in the morning session

・Nikkei average is rising (38,552.06, +743.30)

1 dollar = 146.80-90 yen.

・Chicago Nikkei futures are up (38,625, +25 compared to Osaka)

・SOX Index is up (5,125.21, +26.01)

・US crude oil futures rose (73.71, +3.61)

Expectations for inflation to ease in the US.

Active share buybacks

Request for improvement in corporate value by the Tokyo Stock Exchange.

・Tokyo Century <8439> invests 1 trillion yen in aircraft, procures 120 units for lease, actively investing in response to expanding passenger demand

・TOPPANHD <7911> aims for the establishment of cross-organizational synergy, targeting a contribution of 20 billion yen in revenue from the three major companies

・SoftBank G <9984> Chairman and CEO Son predicts the realization of 'super intelligence' within 10 years

・UBE <4208> acquires German Lanxess' polyurethane business for 73.6 billion yen

Fujitsu <6702> cooperates with U.S. Supermicro on AI infrastructure, energy-saving and high-performance

Mitsui Sumitomo FG <8316> promotes EV battery reuse, system development by public-private collaboration, aiming for domestic circulation realization in 10 years

Toyota Motor <7203> supports increased net trading in Aichi Prefecture, Aichi SMEs x Toyota Group negotiation meeting

Aichi Steel <5482> significantly improves weather resistance, new product samples of neodymium magnet

Nippon Seiki <7287> develops outdoor projectors for guiding display on roads and cars

Sumitomo Heavy Industries <6302> opens a facility in Hiroshima for bio power generation and environmental facility maintenance

NEC <6701> supports cyber measures as a companion run, with experts assisting the person in charge

Mitsubishi Chemical Group <4188> accelerates resin proposals for 3D printer

Shikoku Electric Power President Yoshihiro Miyamoto aims for growth in both electricity and non-electricity sectors.

Mitsubishi Estate to renovate the Otemachi Building, establishing a climate tech base.

Mitsui Fudosan partners with Tokyo Electric Power EP and Offsite PPA to supply renewable energy.

☆ Schedule of events in the morning session

Not applicable.

Not applicable.