In the afternoon trading on the 12th, there are three points to focus on:

・The Nikkei average rose for the third consecutive day, but semiconductor stocks weighed on after the buying spree.

・The dollar-yen struggles to rise, temporarily rising to the 154 yen level.

・The top contributors to the price increase are Fast Retailing <9983> in first place, and Recruit Holdings <6098> in second place.

■ The Nikkei average rose for the third consecutive day, but semiconductor stocks weighed on after the buying spree.

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

On the 11th, the U.S. stock market continued to rise. The Dow Jones rose by 304.14 points to 44,293.13, and the Nasdaq rose by 11.99 points to 19,298.76 at the close of trading. Buyers continued to expect regulatory relaxation and growth prioritization policies from the upcoming Trump administration, leading to an increase after the opening. Later, with Veterans Day holiday causing bond markets to be closed, creating a lack of material, rotation led to buying of small-cap stocks while high-tech stocks were sold, causing a temporary decline in the Nasdaq. The Dow remained strong throughout the day, setting new record highs for consecutive days, supporting the overall market and enabling the Nasdaq to recover into positive territory by the close.

Encouraged by the strong performance of the U.S. stock market, the Tokyo market started trading slightly inclined towards buying. The Nikkei average, after a slight rise at the start, was seen to rise to 39,866.72 yen, but due to the weakness in semiconductor stocks, the upside remained heavy. However, buying interest in earnings announcement stocks continued, and the trading value in the main board market increased to 2.2 trillion yen, further expanding the trading value.

Among Nikkei average adopted stocks, Recruit Holdings <6098> increased profits for the current period due to the improvement in the US labor market, reaching a record high since its listing. Net profits of the three mega banks were reported to exceed 2 trillion yen, leading to increases in Mizuho <8411>, Sumitomo Mitsui <8316>, and Mitsubishi UFJ Financial Group <8306>. In addition, Renesas Electronics <6723>, Furukawa Electric <5801>, Nissan Motor <7201>, Mitsubishi Motors <7211>, Suzuki <7269>, and others increased.

On the other hand, semiconductor stocks such as Laser Tech <6920>, Advantest <6857>, Disco <6146>, Tokyo Electron <8035> declined due to the lackluster performance of the Philadelphia Semiconductor Stock Index (SOX Index). Furthermore, Screen Holdings <7735> faced aversion after extending the deadline for submitting its semi-annual report. Additionally, DOWA <5714> revised its full-year operating profit forecast upwards, but the stock fell due to not meeting market consensus. Kawasaki Kisen Kaisha <9107>, Toray Industries <3402>, Hitachi <6501>, Taiheiyo Cement <5233>, and others also performed poorly.

In terms of global sectors, rubbers, transportation equipment, services, banks, insurance, etc., saw increases, while only the marine shipping, electric appliances, and fiber sectors experienced declines.

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

The earnings report stocks during trading hours are as follows: in the 12 o'clock session, Kashima Construction <1812>, Nissan Securities Group <8705>; in the 13 o'clock session, SBS Holdings <2384>, Shimizu Construction <1803>, Adeka <4401>, JUKI <6440>, Takashima <8007>; in the 14 o'clock session, Daiwa House <1925>, Mitsui Sumitomo Construction Road <1776>, Yakult <2267>, Sumitomo Osaka Cement <5232>, Iwatani Industry <8088>; at 3 o'clock, Mitsui Sumitomo Construction <1821>, Kumagai Gumi <1861>, JGC HD <1963>, Sapporo HD <2501>, Suntory BF <2587>, Tokyo Seizo <5981>, Sharp <6753>, Haseko Corporation <1808>, INPEX <1605>, Idemitsu Kosan <5019>, NXHD <9147>, Taiheiyo Cement <5233>, Sumitomo Metal Mining <5713>, Seiko Group <8050>, and others are scheduled.

The dollar-yen exchange rate struggled, temporarily rising above 154 yen.

On the morning of the 12th, the dollar-yen exchange rate was sluggish in the Tokyo market. Continued dollar buying due to expectations of a stronger dollar pushed the rate up from 153.47 yen to 154.05 yen. However, it slowed down after being pressured by selling near a milestone. Meanwhile, the Nikkei average stock price remained firm, supported by yen selling against major currencies.

The trading range so far has been 153.47 yen to 154.05 yen for the dollar-yen, 163.62 yen to 164.03 yen for the euro-yen, and 1.0643 dollars to 1.0663 dollars for the euro-dollar.

Check stocks for the afternoon session

FISCO <3807>, Minato Holdings <6862>, etc., 4 stocks hit the daily limit

*Includes temporary stopper (indicated price)

The top contributors to the price increase are First Retailing <9983>, followed by Recruit HD <6098> in 2nd place

Economic indicators and remarks by important people

[Economic indicators]

Japan's money supply M3 in October: +0.7% year-on-year (September: +0.8% year-on-year)

[Important Person's Remarks]

・Mr. Trump

・"To appoint Mr. Tom Homan as the border responsibility official"

Not applicable.

・16:00 UK 8-10 ILO unemployment rate (forecast: 4.1%, 7-9: 4.0%)