In the morning session of the 6th, you may want to pay attention to the following three points.

Despite an unstable Start, the willingness to Buy on dips is strong.

No earnings reports.

Key points from the morning: Nippon Steel, United States Steel's acquisition plan prohibited, considering all measures.

Despite an unstable Start, the willingness to Buy on dips is strong.

The Japanese stock market at the open is likely to have an unstable Start. In the U.S. market on the 3rd, the Dow Jones Industrial Average rose by 339 dollars, and Nasdaq increased by 340 points. Since weak price movements had continued until the previous day, it seems that buying from a sense of value became predominant. Additionally, the U.S. ISM Manufacturing Index for December rose more than expected, and Richmond Fed President Barkin indicated in a speech that the current policy interest rates continue to be sufficiently restrictive to curb this year's inflation, which led to increased buying confidence. The Chicago Nikkei 225 Futures fell by 395 yen from Osaka to 39,595 yen. The yen exchange rate is fluctuating around 157.20 yen per dollar.

The Nikkei Average is likely to lead with some selling, aligning with the Chicago Futures. Although the Dow Jones increased by 339 dollars on the 3rd, it dropped over 900 dollars in the previous four trading days, so it may not escape the realm of self-correction. However, given that NVIDIA showed strong price movements, major technology stocks could support the Index ETF significantly.

Additionally, while the Nikkei 225 Futures saw a drop to 39,220 yen during holiday trading, the decline to the level of the 25-day moving average is seen as easing overbought conditions. Therefore, even though selling is predominant, in a phase where selling subsides, the emphasis on buying on dips may become apparent. Furthermore, along with NVIDIA, the rise of Super Micro Computer Inc has been notable. Interest in AI-related stocks is likely to remain strong in 2025.

In addition, funds associated with NISA are likely to see inflow through investment trusts and similar instruments, increasing the focus on dividends. On December 27, the Nikkei Stock Average extended its significant gains and recovered to levels not seen since mid-July, approaching the +3σ of the Bollinger Bands, raising concerns about overheating. In the futures market, it is believed that adjustments were completed during holiday trading, and while assessing the firmness after the opening, there is a desire to aim for dips.

Stock picking is likely to focus not only on theme stocks related to AI and quantum computers but also on dividend-oriented choices. While value stocks may take center stage, the effects of NVIDIA will also draw attention to trends in high-tech stocks.

No earnings reports.

There were no earnings reports.

■ Key materials for the first half of the trading session

・The Dow Jones Industrial Average rose (42732.13, +339.86)

・The Nasdaq composite index rose (19621.68, +340.89)

・The SOX index rose (5163.65, +142.15)

The VIX Index has decreased (16.13, -1.80).

US crude oil Futures have increased (73.96, +0.83).

Active share buybacks

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

Nippon Steel <5401> plans to prohibit the acquisition of United States Steel and is considering all measures.

Honda <7267> is conducting a business investigation on hydrogen and local production in Thailand with Nippon Steel & Sumitomo Metal Corporation.

Suzuki <7269> is solving social issues in India and has signed a memorandum with two local organizations.

Takatori <6338> has developed a system to automatically unfold, separate, and improve the productivity of sewing.

Mitsubishi Chemical Group <4188> increases production of Battery Anode Material, 2.8 times capacity in Kagawa.

Toho Gas <9533> participates in charging for electric two-wheelers in Indonesia.

☆ Morning event schedule

< Domestic >

Japan Exchange Group, New Year’s Opening Ceremony.

10:45 - China’s December Caixin Services PMI (Financial Estimates: 51.4, November: 51.5).