In the afternoon trading of the 21st, we want to pay attention to the following three points.

The Nikkei average continues to decline, temporarily falling below 38,000 yen due to a drop in semiconductor stocks.

The dollar-yen exchange rate is consolidating after a drop, resurfacing around 155 yen.

The biggest contributor to the decline is Fast Retailing <9983>, and the second is Advantest <6857>.

The Nikkei average continues to decline, temporarily falling below 38,000 yen due to a drop in semiconductor stocks.

The Nikkei average continues to decline. It ended the morning session down 319.12 yen (-0.83%) at 38,033.22 yen (estimated volume 0.8 billion shares).

The trading volume was approximately 0.8 million shares.

On the 20th, the US stock market was mixed. The Dow average rose by 139.53 dollars to 43,408.47 dollars, while the Nasdaq fell by 21.33 points to 18,966.14, closing the trading session. Reports that Ukraine has launched domestically produced long-range missiles into Russian territory raised concerns about persistent geopolitical risks, leading to a drop after the opening. Federal Reserve Board governor Bowman indicated that inflation progress has stalled, showing a hawkish stance, resulting in a decline due to selling spurred by rising long-term interest rates. However, as Nvidia's earnings reports, which are expected to drive the market, approached after the trading ended, the Dow experienced buybacks and turned to rise in the latter part of the session. Nasdaq also narrowed its loss but could not recover to positive territory, closing mixed.

In the earnings report for nvidia for the period from August to October announced just after 6 AM Tokyo time, revenue was $35.082 billion, surpassing market financial estimates of $33.162 billion. Furthermore, the adjusted earnings per share also exceeded the market financial estimates at $0.81 against the expected $0.75. On the other hand, a forecast for fourth-quarter revenue of $37.5 billion was provided. Although this exceeded the market financial estimates of $37 billion, the upward revision was slight, causing nvidia's stock price to drop by about 5% in extended hours trading after the announcement.

The Tokyo market started trading with little movement, but following the earnings reports from nvidia and the trends in extended hours trading, semiconductor-related stocks like Advantest <6857> and Disco <6146> widened their declines, causing the Nikkei average to gradually increase its losses. There was even a moment when it briefly fell below 38,000 yen. However, due to expectations of additional interest rate hikes by the Bank of Japan, mega bank and other bank stocks generally rose. Relatively, as TOPIX remained stable, the Nikkei average avoided a sharp drop, showing consolidation around the 38,000 yen level.

In the stocks included in the Nikkei average, aside from Advantest and Disco, semiconductor stocks such as Socionext <6526> and Screen HD <7735> were sold off, as well as defense-related stocks like IHI <7013> and Mitsubishi Heavy Industries <7011>. Additionally, other stocks such as Sumitomo Realty <8830>, Fast Retailing <9983>, Hoya <7741>, Mitsukoshi Isetan <3099>, and Sony Group Corp <6758> were also sold.

On the other hand, the three major electric wire companies, Sumitomo Electric <5802>, Fujikura <5803>, and Furukawa Electric <5801> were all bought, and positive reports from brokerage firms also influenced the rise of Pacific Cement <5233>. Based on expectations of additional interest rate hikes by the Bank of Japan, stocks in the Mitsui Sumitomo Trust Group <8309>, Mizuho <8411>, Fukuoka <8354>, and Shizuoka FG <5831> were also bought. Additionally, UBE <4208>, Kyowa Kirin <4151>, Mitsui Mining <5706>, and Tokyo Gas <9531> saw increases.

By global sectors, mining, precision instruments, machinery, retail, and pulp & paper saw declines, while nonferrous metals, banks, textiles, fisheries & agriculture, and other finance sectors saw increases.

During lunch hour, the exchange rate was around 155 yen per dollar, which is about 30 sen stronger for the yen compared to the morning. Currently, there have been no observations of stock trading influenced by exchange rate trends, so the effects of a stronger yen against the dollar are considered limited. In the afternoon, the lackluster trends of semiconductor stocks influenced by the nvidia earnings will weigh on the Nikkei average. Expect a quiet battle at the 38,000 yen level.

■ The dollar-yen exchange rate is stabilizing and has rebounded to around 155 yen.

On the morning of the 21st in the Tokyo market, the dollar-yen exchange rate stabilized. It dropped from around 155.40 yen to 154.88 yen, but then recovered to around 155 yen. The yen purchases due to the drop in the Nikkei average have eased. Moreover, the U.S. 10-year Treasury yield has slightly recovered, making it prone to swings toward dollar buying.

The trading range so far is as follows: the dollar-yen is between 154.88 yen and 155.40 yen, the euro-yen is between 163.35 yen and 163.83 yen, and the euro-dollar is between 1.0542 dollars and 1.0550 dollars.

Check stocks for the afternoon session

One stock of Nippon Resistor Manufacturing Co., Ltd. <6977> reached the daily limit high.

*Includes temporary stopper (indicated price)

The top contributor to the decline is Fast Retailing <9983>, and the second place is Advantest <6857>.

Economic indicators and remarks by important people

[Economic indicators]

・Nothing in particular

[Important Person's Remarks]

・USA Secretary of Defense

"Approval for the provision and use of antipersonnel mines to Ukraine"

・14:10 Governor Ueda's speech (Paris Europlus Financial Forum)

Nothing special