In the morning trading on the 21st, the following three points should be noted.

Nvidia's earnings reports have passed, but individual stocks such as defense and cryptocurrency-related ones are being selected.

No earnings reports.

Highlight materials for the morning session: Sumitomo Corporation acquires Vietnamese agrochemicals, gaining access to major sales networks, pushing forward in growth markets.

Nvidia's earnings reports have passed, but individual stocks such as defense and cryptocurrency-related ones are being selected.

The Japanese stock market on the 21st is likely to open with a sell signal, followed by a gradual showing of resilience. In the US market on the 20th, the Dow Jones Industrial Average rose by 139 dollars, while the Nasdaq fell by 21 points. Following reports that Ukraine launched British-made long-range missiles into Russian territory, selling was prioritized due to geopolitical risks. The hawkish stance of Federal Reserve Board member Bowman, indicating a stagnation in the progress of inflation, also weighed heavily. However, with some defensive shares being bought, the Dow managed to recover toward the end. The Chicago Nikkei 225 futures settlement price is 38,280 yen, down 160 yen compared to Osaka. The exchange rate is hovering around 155.30 yen per dollar.

The Nikkei average stock price seems set to start with a sell-heavy trend, reflecting the Chicago futures prices. There was a moment during the night session where the Nikkei 225 futures dropped to as low as 37,860 yen, and similarly to the previous day, it showed signs of resistance at the 75-day moving average level, eventually closing at the level of the 200-day moving average. Selling is likely influenced by caution towards geopolitical risks, but it seems focused on short-term trades. The Nikkei average stock price is also being held down by the 200-day moving average, creating a cautious stance towards selling around 38,500 yen, but an approach towards 38,000 yen may lead to a buying attitude based on dips.

In addition, Nvidia's highly anticipated earnings reports exceeded market expectations for the third quarter and its outlook, but in extended hours trading, selling has taken precedence. However, immediately after the announcement, there was a moment where it dropped by over 6%, but later the decline shrank, and the negative reaction to the high-impact tech stocks is likely to be limited. There may be movements aimed at taking advantage of the situation, while also expecting movements to target dips after assessing the market's resilience. Moreover, stocks related to generative AI are likely to attract movements driven by individual investors aiming for price fluctuations.

However, amidst heightened vigilance regarding geopolitical risks, aggressive buying remains difficult. Apart from defense-related matters, it has been reported that President Trump's transition team is discussing with industry stakeholders whether to establish a new position focused on cryptocurrency policy, which suggests that individual stock selection related to cryptocurrencies may become the focus.

■ No earnings reports

Materials of concern in the morning session

・The Dow Jones Industrial Average rose (43408.47, +139.53)

・1 dollar = 155.30-40 yen

Active share buybacks

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

・Sumitomo Corporation acquired Vietnamese agrochemicals, gaining a major sales network and pushing into a growing market.

Aeverick, part of the Minebea Mitsumi Group, is entering the complex power circuit market, targeting in-vehicle cameras for spring of next year.

Zenken is supporting the acceptance of foreign care workers, collaborating with local governments.

Yokohama Rubber is working with Tsukuba University to clearly visualize the internal structure of rubbers.

Kanadebia has developed a thin solid state battery with a capacity of 1 ampere hour.

Trusco Nakayama is enhancing its shipping capability in the metropolitan area, with an automated packing line in Chiba.

NEC has successfully demonstrated quantum tokens in collaboration with Mitsui & Co. and others, confirming issuance and redemption.

Olympus is utilizing IOWN for remote endoscopic diagnosis and video transmission, in collaboration with NTT for demonstration.

Mitsubishi Electric Corp. unsponsored adr has opened a new factory in Fukuoka for the assembly of power semiconductor devices.

Fujifilm <4901> is set to release its first camera for film production next year.

Osaki Electric <6644> has developed an energy usage forecasting system in collaboration with a German company.

NTT Data <9613> has introduced a new menu in its security services specialized in ransomware countermeasures.

WingArc 1st <4432> partners with enechain to start a GX talent development service.

Arakawa Chemical Industries <4968> targets advanced semiconductors with light-dielectric polyimide resin used for photosensitive insulation materials.

Osaka Soda <4046> increases silica gel production by 1.5 times for pharmaceutical purification.

JFE <5411> is progressing with the redevelopment of the Kawasaki blast furnace site and the Otemachi area.

Nishi Nihon Gas HD <9536> will supply e-methane next summer, with construction of facilities starting in Kitakyushu.

・Nippon Oil <4403> will begin operations next year for the pharmaceutical formulation raw material manufacturing facility in Aichi, doubling production capacity.

・DOWA <5714> will transfer the Group's metal mine interests in zinc and copper in the USA.

・Asahi Kasei <3407>, a major chemical company, restructuring acrylic resin, with successive withdrawals and production cuts.

・Mitsui Chemicals <4183>, President Kazushi Nakajima, "expanding sales for semiconductors."

☆ Schedule of events in the morning session

・Nothing in particular

・Nothing in particular