The Nikkei average rose for the third day. It ended the morning session at 39,748.13 yen, up 214.81 yen (+0.54%) from the previous day, with an approximate volume of 1,090 million shares traded.

The U.S. stock market continued to rise on the 11th. The Dow Jones Industrial Average closed at 44,293.13, up 304.14 points, while the Nasdaq closed at 19,298.76, up 11.99 points. Buying continued due to expectations of deregulation and growth priority policies by the upcoming Trump administration, leading to an initial rise. However, a rotation occurred with small-cap stocks being bought while high-tech stocks were sold, causing a temporary decline in the Nasdaq. The Dow steadily rose throughout the day, reaching record highs consecutively, supporting the overall market and enabling the Nasdaq to recover to positive territory.

In response to the strong performance of the U.S. stock market, the Tokyo market started trading with a slight bias towards buying. The Nikkei average started slightly higher and reached 39,866.72 yen, but due to weakness in semiconductor stocks, the upside was limited. However, interest continued in earnings report stocks, with trading value in the main board market reaching 2.2 trillion yen and trading volume continuing to expand.

In the Nikkei average component stocks, Recruit Holdings Co., Ltd. <6098> rose to a record high as profit forecasts turned positive following improvements in the U.S. labor market. Net profits of the three major banks exceeded 2 trillion yen, leading to increases in Mizuho <8411>, Sumitomo Mitsui <8316>, and Mitsubishi UFJ Financial Group <8306>. Additionally, Renesas Electronics <6723>, Furukawa Electric <5801>, Nissan Motor Co. <7201>, Mitsubishi Motors <7211>, and Suzuki <7269> also rose.

On the other hand, due to the underperformance of the Philadelphia Semiconductor Index (SOX index), semiconductor stocks such as Lasertec <6920>, Advantest <6857>, Disco <6146>, and Tokyo Electron Ltd. <8035> declined. Screen Holdings <7735> faced selling pressure as the deadline for submitting the interim report was extended. Additionally, DOWA Holdings <5714> revised its full-year operating profit outlook upwards but fell short of market consensus. Other stocks like Kawasaki Kisen <9107>, Toray Industries Inc. <3402>, Hitachi <6501>, and Taiheiyo Cement <5233> also struggled.

Among the industry sectors, rubber, transportation equipment, services, banks, and insurance all rose, while only the marine shipping, electric appliances, and textile sectors experienced declines.

Although there were moments where the exchange rate touched 154 yen to the dollar, it did not provide tailwinds to export-related stocks. In the afternoon session of the Tokyo market, attention shifted more towards earnings report stocks than in the morning, leading to a lack of clear direction for the Nikkei average.

The earnings report stocks during trading hours are as follows: in the 12:00 hour, Kajima Corp <1812>, Nissan Securities G <8705>; in the 13:00 hour, SBS Holdings <2384>, Shimizu Corp <1803>, ADEKA <4401>, JUKI Corp <6440>, Takashimaya <8007>; in the 14:00 hour, Daiwa House <1925>, Mitsui Home Road <1776>, Yakult Honsha <2267>, Sumitomo Osaka Cement <5232>, Iwatani Corp <8088>; at 15:00, Sumitomo Mitsui Construction <1821>, Kumagai Gumi <1861>, JGC Holdings <1963>, Sapporo Holdings <2501>, Suntory Beverage & Food <2587>, Tokyo Seiko <5981>, Sharp Corp <6753>, Haseko Corp <1808>, INPEX <1605>, Idemitsu Kosan <5019>, NXHD <9147>, Taiheiyo Cement <5233>, Sumitomo Metal Mining <5713>, Seiko Group <8050> and others are scheduled to announce.