I would like to pay attention to the following 3 points in the 3-day advance transaction.

■Expectations for solid market developments led by high-tech stocks

■Itoen's 2Q operating profit down 15.6% to 14.3 billion yen

■Notable materials on the front floor: Kawasaki Shigeru recycles in-vehicle batteries and recycles 99.5% pure lithium carbonate

■Expectations for solid market developments led by high-tech stocks

The Japanese stock market on the 3rd seems to have such a strong sense of market development after a round of buying, but it seems that people will be aware of the stiffness of the lower price. On the 2nd, the NY Dow depreciated by 128 dollars and the NASDAQ was 185 points higher in the US market. The rise in long-term US interest rates, the geopolitical risks of the situation in the Middle East, and the fact that the French cabinet is facing a crisis of collapse due to suspicion of distrust, etc. were warned, and profit determination sales became dominant. Among them, a portion of high-tech stocks was bought, and the NASDAQ index hit a new high. The Chicago Nikkei 225 futures settlement value is 38615 yen, 145 yen higher than Osaka. The yen exchange rate is hovering in the 149-yen 50 yen range per dollar.

The Nikkei Stock Average is likely to start slightly ahead of buying in the form of falling in line with Chicago futures. The rise in high-tech stocks is conspicuous in the US market, and the rapid increase in Super Micro, which announced that it was found that there was no evidence of fraudulent accounting due to special commission investigations, also seems to brighten investor sentiment. It seems that aggressive trading will be withheld due to uncertainty about the tariff policy etc. of the next US President Trump, etc., but solid market development led by high-tech stocks is expected.

There was also a scene where Nikkei 225 futures temporarily approached the 25th line due to price movements with the 200-day line as a support line in the night session. At the level of the 25th line, it is easy to be aware of sales aimed at waiting for a return, but if the same line clearly rises, there is a possibility that short covers will strengthen, and trend formation targeting the milestone of 39,000 yen is expected. Therefore, in a phase where it softens after one round of buying, it seems that they will move towards a stance aimed at push.

Also, there was a scene where yesterday's Nikkei Stock Average fell below 38,000 yen in the middle of the front market, but it has been confirmed that there is a strong desire to buy in the 38,000 yen split. After that, while the 75th line was perceived as a support line, it was a development that approached the 200-day line and the 25th line. A strong trend led by high-tech stocks is likely to be expected in a development where the two lines are located clearly upward around 38650 yen to 38690 yen.

Meanwhile, since the yen exchange rate is once again moving in the 1 dollar = 149 yen range, the appreciation of the yen becomes a burden. In the Middle East situation, it is reported that the pro-Iranian militia organization Hezbollah in Lebanon carried out attacks against Israeli military bases. Be aware of the possibility that geopolitical risk may become a burden.

As for shopping, in addition to high-tech stocks, it would be easy for funds to go to AI-related small and medium-sized stocks. Meanwhile, the weak price movements of Fast Lite ＜9983＞ were a burden on the Nikkei Stock Average yesterday. If it seems to show an autonomous backlash, it is easy for Nikkei Average index purchases to enter.

■Itoen's 2Q operating profit down 15.6% to 14.3 billion yen

The results for the second quarter of the fiscal year ending 2025/4 announced by Itoen ＜2593＞ were sales of 252.3 billion21 million yen, up 4% from the same period last year, and operating profit of 14.3 billion89 million yen, down 15.6% from the same period last year. Due to the effects of the record heat wave, the trend remained steady, mainly with “Oi Ocha” brand products. Tully's Coffee Japan also performed well in the food and beverage related business. The rise in raw material and material prices, mainly vegetable juice and PET bottle containers, resonated, and advertising costs were high due to the influence of signing a global contract with Shohei Otani from the US Major League.

■Notable materials from the front

・The Nikkei Average rose (38513.02, +304.99)

・The Nasdaq Composite Index rose (19403.95, +185.78)

・Chicago Nikkei futures rose (38615, +145)

・The SOX index rose (5055.32, +128.76)

・The VIX Index declined (13.34, -0.17)

・US crude oil futures rose (68.10, +0.10)

・Active share buybacks

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

・Kawasaki Heavy ＜7012＞ automotive batteries are recycled and 99.5% pure lithium carbonate is recovered

・Daihen ＜6622＞ collaboration and transport robot expansion, strategic model next spring

・Shimadzu Corporation ＜7701＞ enters gene therapy drugs, invests in Osaka University Shinko, establishes analysis and evaluation methods, etc.

・Resonac ＜4004＞ fine copper circuit formation, photosensitive film for AI semiconductors

・NTT ＜9432＞NTT Com, a new company for land-based aquaculture research, utilizes ICT for chemical reaction filtration technology

・Sumitomo Chemical's ＜4005＞ radiopharmaceutical subsidiary shares were sold to GE Healthcare in the UK

・SBI ＜8473＞DMM Bitcoin goes out of business, May's fraudulent outflow resonates, customer assets are transferred to SBI

・Mitsubishi Heavy ＜7011＞ receives order for 24 MOX fuel units for Ikata nuclear power plant

・Sumitomo Shigeru ＜6302＞ India headquarters to open next month

・Meidensha ＜6508＞ transformers increased 1.5 times, demand for renewable energy power increased

・Mitsui E&S ＜7003＞ port cranes received an order in the US, 8 Near Zero Emi-type units

・Canadevia ＜7004＞English garbage incineration power generation order

・OMRON ＜6645＞ DC power relay, process reduction, gasless structure

・Sumitomo Electric ＜5802＞ DPS and palladium recovery from wastewater at Vietnam FPC site

・PanaHD＜6752＞AI efficiently generates target images and utilizes them for installing home appliances

☆ Front office event schedule

＜Domestic＞

・ 08:50 November monetary base (October: -0.3% year over year)

＜Overseas＞

・ 09:30 Australian current account balance for the fiscal year ending 7/9 (forecast: -10.9 billion Australian dollars, April-6 billion Australian dollars: -10.7 billion Australian dollars)