In the morning session on the 23rd, we want to focus on the following three points.

Short-term price幅 targeting movements in Australian Small/Mid Cap.

Japan Oracle's Q2 operating profit increased by 9.4% to 41.9 billion yen.

Materials of interest for the morning session: Sumitomo Heavy Industries is making a strategic investment of 10 billion yen in Niihama, redesigning the transport system and collecting data.

Short-term price幅 targeting movements in Australian Small/Mid Cap.

On the 23rd, the Japanese stock market is likely to start with some buying, but is expected to be a very stagnant market development. On the 20th, the U.S. market saw the Dow Jones Industrial Average rise by 498 dollars, and the Nasdaq by 199 points. The November PCE price index, indicating progress in inflation control, supported a prevailing buying trend. Although the Dow saw moments exceeding 800 dollars rise, there was selling due to position adjustment as stock index futures, stock index options, and individual stock options all had expiration dates coinciding with a "triple witching" event, and there was also concern over the possibility of government agency closures, leading to a subsequent slowdown. The clearing price of the Chicago Nikkei 225 futures (March) was 38,885 yen, up 175 yen compared to Osaka. The yen rate is fluctuating around 156.40 yen per dollar.

The Nikkei average stock price seems to indicate slight buying as it aligns with the Chicago futures. Although the Dow has not moved beyond the realm of autonomous rebound, it seems to provide some reassurance for the time being. Additionally, U.S. President Biden signed a budget bill ahead of March 21, which likely reduced the risk of government agency closures. In the USA, stocks in the semiconductor sector, such as NVIDIA, are being bought, suggesting that highly impactful stocks on the index may drive the market.

The Nikkei 225 futures were sold down to as low as 38,340 yen during the night session, approaching the 38,210 yen level reached during the decline on the 19th, making it difficult to determine the bottom. However, after a subsequent rebound, if it clearly moves above the 25-day line at around 38,900 yen, there is a possibility that the rebound trend will strengthen. However, given that the U.S. Federal Open Market Committee (FOMC) has passed and overseas players are entering Christmas holidays, market participants are expected to be limited, making it easy to swing towards short-term trading.

The market is likely to focus on buying back high-priced tech stocks driven by the direction of the US market, and due to limited market participants, it seems that there will be movements aiming for short-term price fluctuations in individual Australian Small/Mid Cap stocks. In addition to stocks with specific materials, it's important to anticipate movements in related stocks while exploring next year's themes.

■ Oracle Corp in Japan reports a 9.4% increase in operating profit for Q2, at 41.9 billion yen.

Japan Oracle Corp (4716) announced that for the second quarter of the fiscal year ending May 2025, revenue was 125.2 billion 95 million yen, a 6.7% increase compared to the same period last year, and operating profit was 41.9 billion 13 million yen, a 9.4% increase. The subscription revenue from cloud play grew significantly by 19% to 28.2 billion yen, resulting in record highs for revenue, operating profit, ordinary profit, and net profit for the interim accounting period.

■ Key materials for the first half of the trading session

・The Dow Jones Industrial Average is up (42840.26, +498.02).

・The Nasdaq Composite Index is up (19572.60, +199.83).

・The Chicago Nikkei Futures are up (38885, +175).

・The SOX Index is up (4964.91, +71.44).

・The VIX Index has decreased (18.36, -5.73)

・US crude oil futures have risen (69.46, +0.08)

Long-term US interest rates fell.

Active share buybacks

• The Tokyo Stock Exchange's request for corporate value enhancement

・Sumitomo Heavy Industries <6302> makes a strategic investment of 10 billion yen in Niihama, with a new building designed for transporting systems.

・SHARP CORP <6753> sells part of the Sakai factory to SoftBank for 100 billion yen.

・Japan Oxygen HD <4091> acquires an Australian company for 75.3 billion yen, expanding its industrial gas Overseas business.

・Tokyo Gas <9531> expands collaboration with Petronas on Hydrogen and CCS, complementing technologies.

・Hoshizaki <6465> acquires a company in Vietnam, expanding sales of commercial Refrigerators in Southeast Asia.

・Horiba <6856> introduces a portable device for new exhaust gas regulations, capable of measuring 9 components with a single unit.

・Kanamoto <9678> President Tetsuo Kanemoto aims to achieve ROE of 8% with prospects.

・Mitsubishi Heavy <7011> receives order for inspection equipment from Taiwan High Speed Rail for vehicle bases.

・CSSHD <2304> partners with Tech Magic to introduce cooking robots in the Lodging industry.

・SMK <6798> mass produces self-powered coin modules, replacing Batteries, miniaturization, and durability.

・Fuji Electric <6504> increases production capacity of distribution boards and power supplies by 1.5 times to meet DC demand.

・SoftBank <9434> remotely controls underwater robots in Antarctica from Tokyo, combining optical wireless and satellite communications.

・Taisei Corporation <1801> uses a combination of bolts and adhesives for steel frame connections.

・Sekisui Chemical <4204> collaborates with JR Tokai to implement perovskite solar cells on Shinkansen sound barriers.

・Asahi Kasei <3407> provides cleaning agents for removing residual resin and dirt, specifically for molding machines.

・Sanyo Chemical Industries <4471> develops biofuel additives that maintain fluidity even at low temperatures.

・Sumitomo Chemical <4005> withdraws from aluminum ingot production.

☆ Morning event schedule

< Domestic >

・ Nothing special

・ Nothing special