In the afternoon trading on the 22nd, I would like to focus on the following three points.

The nikkei index rebounded, showing a gradual increase, but the trade stunk.

The dollar-yen exchange rate is stabilizing, temporarily falling below 154 yen.

The top contributor to the rise is fast retailing <9983>, and the second is tokyo electron ltd. unsponsored adr <8035>.

The nikkei index rebounded, showing a gradual increase, but the trade stunk.

The Nikkei average rebounded. It closed the morning trading at 38,415.32 yen, up 389.15 yen (+1.02%) from the previous day, with estimated volume of 810 million shares.

The US stock market rose on the 21st. The Dow Jones Industrial Average closed at 43,870.35, up 461.88 points, while the Nasdaq closed at 18,972.42, up 6.28 points. Geopolitical risks eased, leading to an increase after the opening. Chicago Fed President Goolsbee indicated that next year's interest rates are likely to be below the current level, which spurred buying on the interest rate decline prospects, pushing up the market. Although the Nasdaq struggled due to the rise in long-term interest rates, positive sentiment from Nvidia's semiconductor earnings provided support for purchases and managed to barely maintain the positive territory before closing.

Taking cues from the rise in US stocks, the Tokyo market started trading with a slightly bullish bias. The Nikkei started around 38,100 yen and was lifted to the 38,400 yen range driven by the rise in semiconductor stocks like Advantest <6857> and Tokyo Electron <8035>. Although it closed the morning session in the high range, concerns about the resistance around 38,500 yen level limited a strong upward movement with trading accompanied by a sense of heaviness on the upside.

Among the stocks included in the Nikkei average, chemical-related stocks like Mitsui Chemicals <4183>, Tokuyama <4043>, and Ube <4208> rose. Obayashi Corporation <1802> hit a new all-time high based on a positive report from a securities firm. In the semiconductor sector, Tokyo Electron, Advantest, and Disco <6146> were bought. Additionally, Credit Saison <8253>, Yokogawa Electric <6841>, Resonac <4004>, Nitori Holdings <9843>, and Taiheiyo Cement <5233> saw increases.

On the other hand, electronic equipment-related stocks like Kyocera <6976>, Omron <6645>, Nidec <6594> were weak, while defense-related stocks like IHI <7013> and Mitsubishi Heavy Industries <7011> were slightly soft. Sompo Holdings <8630>, Mitsui & Co. <3099>, Renesas Electronics <6723>, and Suzuki <7269> declined.

By sector, sectors such as petroleum and coal, textiles, services, nonferrous metals, and wholesale rose, while only the pharmaceutical, electricity and gas, and marine shipping sectors declined.

During lunchtime, the exchange rate was in the mid-154 yen range against the dollar with no significant movements observed compared to the morning. Although the Nikkei average is trending above the previous day's closing level, trading volume in the main board market has decreased compared to the previous week, indicating a lack of strength in the development. Factors such as the completion of earnings reports and uncertainties about the upcoming Trump administration are being consciously recognized as reasons for cautious trading. With the Nikkei average taking a breather near 38,500 yen level until the 20th, in a low-volume trading environment, the upside may become heavier around the 38,500 yen level in the afternoon session.

The dollar-yen exchange rate is stabilizing after a decline, briefly falling below 154 yen.

In the Tokyo market on the morning of the 22nd, the dollar-yen is stabilizing after a decline. In the early morning, it dropped from 154.52 yen to 153.97 yen due to lower U.S. interest rates and dollar weakness. Japan's inflation indicators did not slow down as much as expected, and with the Bank of Japan's rate cut expectations for December, buying of yen strengthened. However, the rise in Japanese stocks supported the dollar against yen.

So far, the trading range is as follows: the dollar-yen is from 153.97 to 154.52 yen, the euro-yen is from 161.20 to 161.83 yen, and the euro-dollar is from 1.0466 to 1.0477 dollars.

Check stocks for the afternoon session

・Orts <260A> and GMO Ad Partners <4784>, two stocks reached the daily limit high.

*Includes temporary stopper (indicated price)

・The top contributor to the rise in prices is Fast Retailing <9983>, and the second place is tokyo electron ltd. unsponsored adr <8035>.

Economic indicators and remarks by important people

[Economic indicators]

・Japan's October consumer price index (excluding fresh food): +2.3% year-on-year (financial estimates: +2.2%, September: +2.4%).

[Important Person's Remarks]

・Wang, Deputy Minister of Commerce of china.

Eager for cooperation with the usa based on respect.

Warning about rising consumer prices due to tariffs imposed by other countries.

China can withstand external influences.

Prime Minister Ishiba.

The comprehensive economic measures have a business scale of approximately 39 trillion yen, and the national general account is 13.9 trillion yen.

Aim to promptly organize a supplementary budget for early enactment.

・Nothing in particular

・16:00 UK October retail sales (including automobile fuel) (month-on-month financial estimates: -0.4%, September: +0.3%)

・16:00 Germany Q3 GDP revised (year-on-year financial estimates: +0.2%, preliminary value: +0.2%)