[Nikkei Stock Average and TOPIX (Table)]
Nikkei average; 39745.23; +264.56
TOPIX; 2740.64; +24.72
[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 7th, the Nikkei average started trading with a consecutive 3-day increase of 264.56 yen to 39,745.23 yen. The previous day, the U.S. stock market rose significantly. The Dow Jones industrial average closed at 43,729.93, up 1508.05, while the Nasdaq closed at 18,983.46, up 544.29 points. The market was bought in response to the presidential election pass, which eased uncertainties, leading to a substantial increase after the opening. Expectations for the pro-business policies of the second Trump administration, such as regulatory easing leading to increased corporate earnings, accelerated buying throughout the day. The market was optimistic about the economy, and the Federal Reserve Board's Federal Open Market Committee (FOMC) added to expectations of further rate cuts, causing a late-session surge and reaching new record highs.
Buying dominated the Tokyo stock market today. Yesterday, the major indexes in the U.S. stock market rose significantly, providing support for Tokyo market stock prices. Furthermore, the yen remains weak and the dollar strong in the foreign exchange market, trading around 154.20 to the dollar, providing a sense of security in the Tokyo market. In addition, the earnings reports of major domestic companies for the 4th to 9th months of September are in full swing, continuing the search for good earnings and solid performance stocks, providing support for stock prices. On the other hand, the prospect of Mr. Trump's victory in the U.S. presidential election, which was a factor in the rise of the U.S. stock market yesterday, had already been largely factored in by yesterday's Tokyo market. The Nikkei average, which had been up until the previous day, rose more than 1400 yen, making it susceptible to profit-taking and waiting for a rebound. Also, the results of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve Board chaired by Mr. Powell will be announced in the early hours of Japan time tomorrow, and his press conference is scheduled, so some were cautious and chose to hold back on active purchases, although buying was dominant in the early stages.
In terms of sectors, banking, insurance, securities futures, oil & coal products, and transportation equipment are among the top gainers, while fisheries & agriculture, pharmaceuticals are among the decliners. In the top turnover on the Tokyo Stock Exchange Prime, Dai-6367, Mitsubishi UFJ-8306, Tokio Marine-8766, Dai-ichi Life HD-8750, Denso-6902, Mizuho-8411, Komatsu-6301, Recruit HD-6098, Kawasaki Heavy-7012, Nintendo-7974, SOMPO-8630, Hitachi-6501, Canon-7751, Toyota-7203, among others were rising. On the other hand, Nitori HD-9843, Keyence-6861, Takeda Pharmaceutical-4502, IHI-7013, Sanrio-8136, Sumitomo Forestry-1911, TDK-6762, Itochu-8001, among others were declining.
