I would like to pay attention to the following 3 points in the 12-day advance transaction.

■Looking at the rise in US high-tech stocks and the recession in domestic political risks as materials

■Kura Sushi, 24/10 operating profit up 132.0% to 5.699 billion yen, 25/10 forecast 12.3% decrease 5 billion yen

■Notable materials from the front floor: DMG Mori Seiki expands Nara Plant by 4 times and enhances automation systems

■Looking at the rise in US high-tech stocks and the recession in domestic political risks as materials

The Japanese stock market on the 12th is likely to have a buy-dominant market. On the 11th, the NY Dow depreciated by 99 dollars and the NASDAQ was 347 points higher in the US market. Since the US Consumer Price Index (CPI) for November matched expectations, views on additional interest rate cuts at the US Federal Open Market Committee (FOMC) strengthened. While the NY Dow fell due to profit-making sales in defensive stocks, the NASDAQ index hit a high due to a shift in funds to high-tech stocks, and it was the first time it was on 0.02 million. The Chicago Nikkei 225 futures settlement price is 40065 yen, 655 yen higher than Osaka. The yen exchange rate has been hovering in the 152 yen 40 yen range per dollar.

The Nikkei Stock Average is likely to start ahead of buying in the form of falling in favor of Chicago futures. In the US, it was an increase led by high-tech stocks in response to CPI results, so it would seem that funds would go to high-tech stocks due to values with a large index impact such as East Elec ＜8035＞ and Advantest ＜6857＞. Nikkei 225 futures rose immediately after starting the milestone of 39,500 yen in the night session, and was rounded up to 40,160 yen at one point until the end of the session. Since it has approached 40170 yen, which is the most recent return price on November 7, it is likely that the buyback movement on the seller side will intensify.

Also, due to rounding up the range ahead of tomorrow's futures and options special settlement index calculation (major SQ), it is easier to enter purchases associated with hedging support, so it seems that there is a possibility that bias higher will intensify. The Nikkei Stock Average breaks through the Bollinger Bands +2σ (39810 yen) and the return high price of 39884.01 yen on 11/7, and if 39901.35 yen, which is the November SQ value, can be captured, there is a possibility that the buyback movement will intensify further.

However, if it seems to exceed +2 σ, it is thought that a short-term sense of overheating will be feared, so in a phase where the feeling of tightness intensifies after one round of buying, it seems that they will move towards a stance aimed at push. Also, the three parties, the Liberal People, Komei, and the National Democratic Party, agreed on the 11th to raise the income tax exemption frame “annual income 1.03 million yen barrier” from 2025. It is a form of concessions in tax system reform in exchange for agreeing to the 2024 supplementary budget plan, but it seems that the point where political risks have been resolved will be evaluated.

The search is expected to rise led by high-tech stocks, and it will be easier for stocks that have formed a weak trend to buy with the aim of an autonomous rebound. Since the supply and demand situation makes it easy for funds related to the index to flow in, I would like to consider that there is a possibility that the spread to small and medium-sized stocks will be limited. In addition, since the yen exchange rate fluctuates around the depreciation of the yen with 1 dollar = in the middle of the 152 yen range, it seems that funds will also go to export-related matters such as automobiles and machinery.

■Kura Sushi, 24/10 operating profit up 132.0% to 5.699 billion yen, 25/10 forecast 12.3% decrease 5 billion yen

The financial results for the fiscal year ending 2024/10 announced by Kura Sushi ＜2695＞ were sales of 234.9 billion 50 million yen, up 11.1% from the previous fiscal year, and operating profit of 5.6 billion 99 million yen, up 132% from the same period. For the fiscal year ending 2025/10, we plan that sales will increase 3.4% from the previous fiscal year to 243 billion yen, and operating profit will decrease 12.3% to 5 billion yen. The shareholder benefit program was abolished from the viewpoint of how to return profits fairly to shareholders, including dividends. The dividend will be a commemorative dividend of 20 yen per share, and it will be 40 yen per share.

■Notable materials from the front

・The Nikkei Average rose (39372.23, +4.65)

・The Nasdaq Composite Index rose (20034.89, +347.65)

・1 dollar = 152.30-40 yen

・Chicago Nikkei futures rose (40065, +655)

・The SOX index rose (5027.80, +133.10)

・The VIX Index declined (13.58, -0.60)

・US crude oil futures rose (70.29, +1.70)

・Active share buybacks

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

・DMG Mori Seiki ＜6141＞ Expands Nara Plant by 4 times and enhances automation systems

・Torishima Seisakusho (6363) pioneered CO2 separation and recovery, and high pressure pump testing facilities at the head office plant

・External sales of Nidec ＜6594＞water cooling parts, business opportunities for AI servers

・Nissan's own ＜7201＞ management reconstruction, North American president becomes CFO due to executive system changes

・Honda ＜7267＞GM withdraws from unmanned taxi business, dissolves autonomous driving partnership

・Fuyo General Lease ＜8424＞Marubeni etc. and new companies are also developing commercial EV leasing, maintenance, and charger installations in Thailand

・Kansai Electric Power Company ＜9503＞ Nuclear Disaster Convergence Management, FY29 Emergency Response Center

・Daily Foods, a subsidiary of Nippon Ham ＜2282＞, acquires 3 rice companies and expands processing and wholesale

・Full production of SUBARU ＜7270 ＞ next-generation hybrid core units, 0.186 million units next year

・Yuasa Shoji ＜8074＞ Energy Saving Support Accelerates Overseas, Remotely Diagnoses Factories

・Mitsubishi Heavy Industries ＜7011＞ acquisition of human resources through defense, 3-year plan, system development including equipment

・Brother Industries ＜6448＞airbag sewing, easy adjustment, new bridge-type sewing machine

・JUKI＜6440＞ electronic board, all in one device, up to screw tightening, equipment for post-processing

・A&D Holon ＜7745＞ cellular model blood pressure/body weight scale for the North American market

・Partnering with European research institutes to develop Ulvac ＜6728＞ etching technology to mass-produce optical device materials

・Gunze <3002＞spinning machine in China to be put into operation in January next year

・Toray ＜3402＞ high dielectric stretch film for flexible sensors

・Obayashi Corporation ＜1802＞GX construction equipment was introduced to the site, the first in Japan, to drastically reduce CO2 emissions

・Tokyo Tatemono ＜8804＞ commences construction on Yaesu redevelopment and develops a wide-area underground passageway network

☆ Front office event schedule

＜Domestic＞

・Nothing in particular

＜Overseas＞

・ 09:30 Australian unemployment rate for November (forecast: 4.2%, October: 4.1%)

・ 09:30 Australia/November increase or decrease in the number of employed people (forecast: +0.025 million people, October: +0.0159 million people)