I would like to pay attention to the following 3 points in the late-day transaction on the 13th.

・The Nikkei Average continues to decline drastically, and there is a heightened sense of caution against trade friction, etc.

・Growth in dollars and yen is sluggish, and sales are near a milestone

・First Rette ＜9983＞ is the top contributor to price drops, and Recruit HD ＜6098＞ is in the same 2nd place

■The Nikkei Average continues to decline drastically, and there is a heightened sense of caution against trade friction, etc.

The Nikkei Average continued to drop drastically. The forward transaction was closed at 38953.44 yen (estimated turnover 1.1 billion 10 million shares), which was 422.44 yen lower (-1.07%) compared to the previous day.

The US stock market fell on the 12th. The Dow average closed at 43910.98 dollars, which depreciated 382.15 dollars, and the Nasdaq closed at 19281.40, which fell 17.36 points. Wait-and-see signs intensified near the record high, and after they snuggled up, it was mixed. There were no new buying materials, and furthermore, due to a sense of accomplishment at a temporary high price, etc., the market price began to decline. Even after that, they were wary of an increase in long-term interest rates against the backdrop of improved economic prospects and mitigation of interest rate cut observations, and remained soft throughout the day. The sense of caution ahead of the announcement of the consumer price index (CPI) tomorrow also became a selling material, and it ended slowly.

In response to the fall in US stocks, the Tokyo market began trading with a slight selling advantage. In response to personnel reports from the next Trump administration, a sense of caution against intensification of trade friction etc. increased, so the Nikkei Average slowly widened its decline from donations, and it fell by 39,000 yen since the 6th. Tokyo Electron ＜8035＞, a stock whose value was derived from financial results, rose drastically, but it was sold mainly in export-related stocks such as automobile stocks.

Among stocks adopted by the Nikkei Average, SoftBank G ＜9984＞, which started with a buying advantage using financial results announcements as materials, sank into a negative zone compared to the previous day after one round of buying, and Nexon ＜3659＞, whose earnings forecast for the current fiscal year fell below market expectations, fell drastically and updated year-to-date lows. Recruit HD (6098), which skyrocketed yesterday, also fell. Additionally, Sumitomo Mining ＜5713＞, JGC HD ＜1963 ＞, Daiichi Sankyo ＜4568＞, Hitachi ＜6501＞, Tokyo Tatemono (8804), etc. fell.

Meanwhile, in addition to Tokyo Electron being drastically higher in response to good performance, Sharp (6753), which had surplus operating profit and loss in the first half, was also bought. Also, electric wire stocks such as Furukawa Electric (5801) and Fujikura (5803) are also strong. Idemitsu Kosan ＜5019＞, which announced TOB to Agro-Kaneshou ＜4955＞, was bought, and there was a sign that Agro-Kaneshou would stop buying at a high price. In addition, Resonac HD ＜4004＞, Ricoh ＜7752＞, Casio ＜6952＞, Sumitomo Pharma ＜4506＞, etc. were purchased.

By industry, pharmaceuticals, other finance, precision instruments, services, other products, etc. declined, while only the 4 sectors of petroleum and coal, warehousing/transportation, fisheries/agriculture and forestry, and air transportation rose.

The exchange rate has been hovering in the latter half of 154 yen per dollar, but it has not continued to be a tailwind for export-related stocks. There is also a possibility that the backstage Tokyo market will be drastically reduced around 14:00 when European investors begin to participate in response to caution against the next Trump administration. The stocks that announced financial results during trading hours are as follows: at 13:00, ENEOS Holdings ＜5020＞, Tsugami ＜610＞, Odakyu Electric Railway ＜9007＞, Matsui Kensetsu ＜1810＞; at 14:00, Mitsubishi Paper Mills ＜3864＞, Petroleum Resources Development ＜1662＞, Zenitaka Gumi＜1811＞, JP Holdings ＜2749＞, and at 15:00, Frutta Fruta ＜2586＞, Komehyo Holdings ＜2780＞, Rakuten G＜4755＞, Ise Mitsukoshi Tan HD ＜3099＞, Mitsuba ＜780＞, Kamigumi ＜9364＞, TOPPAN Holdings ＜7911＞, etc. are planned.

■Growth in dollars and yen is sluggish, and sales are near the milestone

The dollar and yen were sluggish in the Tokyo market on the morning of the 13th. Dollar purchases due to high dollar appreciation took precedence, and it temporarily rose from 154 yen 50 yen to 154 yen 94 yen. However, sales strengthened around the psychological milestone of 155 yen, and the upper price was suppressed even further. The sharp depreciation of the Nikkei Stock Average was also a factor in the dollar's stalling.

The transaction range up to this point is 154 yen 50 yen to 154 yen 94 sen for the dollar and yen, 164 yen 06 yen to 164 yen 51 sen for the euro and yen, and 1.0611 dollars to 1.0629 dollars for the euro dollar.

■Backstage check stocks

・5 stocks, such as SAPEET ＜269A＞ and J-FRONTIER ＜2934＞, etc., are stop-high

*Includes temporary stop height (sign value)

・First Rette ＜9983＞ is the top contributor to price drops, and Recruit HD ＜6098＞ is in the same 2nd place

■Economic indicators and statements from key figures

[Economic indicators]

・Japan-October Domestic Corporate Goods Price Index: +3.4% year-on-year (forecast: +2.9%, September: +2.8% ← +2.8%)

[Remarks by VIPs]

・U.S. Richmond Federal Reserve Governor Birkin

“The US economy is pretty good, but we are monitoring the weakness of the labor market”

“American consumers are becoming more price sensitive”

“The labor market is strong, but there is also a possibility that the soft trend will continue”

“Inflation is under control, but there is also a risk that it will be deeply exceeded”

“We are in an environment where there is a shortage of workers”

＜Domestic＞

・Nothing in particular

＜Overseas＞

・Nothing in particular