I would like to pay attention to the following 3 points in the pre-market transaction on the 25th.

■It is easy for funds to go to economy-sensitive stocks, etc.

■Mitachi, 25/5 revised upward operating income 1.9 billion yen ← 1.8 billion yen

■Notable materials from the front: Sumitomo Corporation, Sumitomo Precision Industries, expand MEMS contract manufacturing, acquire a US joint venture

■It is easy for funds to go to economy-sensitive stocks, etc.

The Japanese stock market on the 25th is likely to develop in a market where the stalemate will gradually intensify after starting with pre-purchase. The NY Dow rose by 426 dollars and the NASDAQ was 31 points higher in the US market on the 22nd. Expectations for a soft landing increased due to improvements in the manufacturing and service industry purchasing manager index (PMI) in November. The fall and gap in long-term US interest rates, and the fact that good financial results of retail companies such as Ross Stores were viewed as materials became support materials, and the NY Dow hit a new high. The Chicago Nikkei 225 futures settlement value is 38595 yen, 255 yen higher than Osaka. The yen exchange rate is hovering in the 154 yen 30 yen range per dollar.

The Nikkei Stock Average is likely to begin with the development of a buying advantage in the form of falling in favor of Chicago futures. There was also a scene where Nikkei 225 futures were temporarily sold up to 38050 yen during the night session, but they continued to decline at the 75-day line level, broke through the 200-day line due to the subsequent turnaround, and surpassed 38500 yen, which is a psychological resistance line. As people are aware of short-term short covers, it seems that developments that test rebounds will be expected.

Last week's Nikkei Stock Average broke through the 200-day line at the beginning of the week, and there was also a scene where it cut 38,000 yen and approached the 75-day line in the latter half of the week. It showed a rebound over the weekend, but it would be easy to be aware of developments testing around the 200-day line (38582 yen), with high US stocks being used as support material. However, since NVIDIA was sold in the US, there is a possibility that values that have a large index impact, such as East Elec ＜8035＞, will become a burden on high-tech stocks. Therefore, there is a possibility that strengths and weaknesses will clash when the Nikkei Stock Average approaches the 200-day line, so be careful about movements aimed at waiting for a return after one round of buying.

Conversely, if it breaks through the 200-day line and the 25th line (38695 yen) seems to be noticed, there seems to be a possibility that the buyback movement will intensify. If the price seems to show the solidity of high-tech stocks, it is easy to lead to sentiment improvement. However, in the US, the 28th is closed for Thanksgiving (Thanksgiving Day), and the next 29th is Black Friday, and the year-end sales season is in full swing. In addition to the good financial results of US retail companies announced on the 22nd, we are preparing to announce personal consumption expenditure (PCE deflator) etc. for October this week, and it is easy to gather interest in private consumption trends, and it is easy for funds to go to economy-sensitive stocks, etc.

Furthermore, the flow of overseas players tends to decrease until the latter half of the week, and there is a possibility that domestic institutional investors will also refrain from actively trading. In a situation where the Nikkei Stock Average becomes stronger after a round of buying, it would be easy to move towards individual-based trading in small and medium-sized stocks, etc.

■Mitachi, 25/5 revised upward operating income 1.9 billion yen ← 1.8 billion yen

Mitachi ＜3321＞ announced revisions to its earnings forecast for the fiscal year ending 2025/5. Sales were revised upward from 80 billion yen to 90 billion yen, and operating profit was revised upward from 1.8 billion yen to 1.9 billion yen. This is because commercial flow transfers from automobile-related customers that began in the 2nd quarter or later, and orders for EMS etc. related to consumer life were strong.

■Notable materials from the front

・The Nikkei Average rose (38283.85, +257.68)

・The NY Dow rose (44296.51, +426.16)

・The Nasdaq Composite Index rose (19003.65, +31.23)

・Chicago Nikkei futures rose (38595, +255)

・The VIX Index declined (15.24, -1.63)

・US crude oil futures rose (71.24, +1.14)

・Long-term US interest rates have declined

・Active share buybacks

・Request for improvement of corporate value by the Tokyo Stock Exchange

・Sumitomo Corporation ＜8053＞Sumitomo Precision Industries expands MEMS contract manufacturing and acquires a US joint venture

・Cosmoene HD ＜5021＞A litmus test for SAF mass production and domestic supply in Sakai with Cosmo Oil, JGC HD, etc.

・JGC HD ＜1963 ＞ 4 parties including Sakai City agree to collect waste cooking oil and supply raw materials to SAF mass production plants

・Hakuhodo DY ＜2433＞Sekisui House, etc. and security services and crime prevention habits are reflected in fees

・NEC ＜6701＞ Advanced Technology Utilization and DX Support and Consulting

・Hokuetsu Corporation ＜3865＞ is active in paper making and recycling, using waste as materials from other companies

・ITOCHU ＜8001＞ e-sports market development, partnership with team management company

・INPEX ＜1605 ＞ Six parties including Mitsubishi Corporation increase natural gas production in Indonesia

・MOL ＜9104＞ LBC tank sale bidders also include US KKR, etc.

・Kyokuto Kaihatsu Kogyo ＜7226＞ actively invests overseas and acquires leading Australian special-equipped vehicles

・Optimal supply of renewable energy to Toyota Industries ＜6201＞ factory, demonstrated by EMS in Takahama

・Part of the design work outsourced to the Suzuki ＜7269＞ stamp Tata

・Mr. Hiroyuki Ogawa, president of Komatsu ＜6301＞ grows for energy due to Trump re-election

・Full-scale application development for NTT ＜9432＞IOWN, DC demonstrations one after another

・Daitron ＜7609＞ President Tsuchiya Shinsuke to increase human resources for electronic components, devices, and software

・NEC ＜6701＞ technical information management software is equipped with a generative AI linkage function

・Partnering with Computing System HD ＜4072＞ to introduce and utilize “decentralized autonomous organizations” for strengthening issues

・Unicharm ＜8113＞ plastic pollution prevention and common regulations were declared by 10 companies including Kirin HD

・Shimizu Corporation ＜1803＞ Construction Robotech and development of assist devices to reduce the burden of rebar binding

・Nippon Soda ＜4041＞ partnered with Kyudai Shinko to mass-produce next-generation OLED light-emitting materials for 26 years

・Toyobo ＜3101＞Toyobo MC starts selling “spiral reverse osmosis membranes” in India

☆ Front office event schedule

＜Domestic＞

・Nothing in particular

＜Overseas＞

・ 06:45 NZ · October trade balance (September: -2.108 billion NZ dollars)