Editor’s Note
This summary highlights the Nikkei Average’s robust three-day rally, reclaiming the 51,000 yen level for the first time since mid-November. The surge aligns with gains in U.S. markets, driven by expectations of monetary easing.
Nikkei Average Continues Strong Rally for 3 Days! Rises 1,163 Yen to Recover 51,000 Yen Level
[Today’s Market]
The Nikkei Stock Average continued its strong rally for three consecutive days, recovering to the 51,000 yen level for the first time since November 13. Following gains in major U.S. stock indices on the 3rd amid expectations of interest rate cuts, the Nikkei Average also significantly expanded its gains from the morning session today. Buying spread across a wide range of stocks, leading to firm trading throughout the day, closing at today’s high of 51,028.42 yen (+1,163.74 yen). The announcement by U.S. President Trump of a significant relaxation of new car fuel efficiency regulations led to buying in automotive stocks like Toyota Motor and Honda. Additionally, as Japan’s long-term interest rates rose to around 1.9% for the first time in about 18 years, buying also entered bank stocks such as Mitsubishi UFJ Financial Group.
In Japan, the October Household Survey will be released tomorrow morning, with attention on the trend of real consumption expenditure excluding the effects of price fluctuations. In the U.S., the September Personal Consumption Expenditures (PCE) Price Index will be released on the 5th. This indicator is gaining significant attention for gauging the future direction of monetary policy.
[Nikkei Average] 51,028.42 yen ↑↑ (+1,163.74 yen)
[Growth 250] 665.98 ↑ (+4.67)
[NY Dow] 47,882.90 dollars ↑ (+408.44 dollars, 3rd)
[Nasdaq] 23,454.092 → (+40.418, 3rd)
[Today’s Notable Stocks]
◆ JFE Holdings (5411)
1,957 yen (+80.5 yen)
Rebounded after 4 days. The company announced an investment in Bhushan Power & Steel (BPSL), which has an integrated steelworks in Odisha, eastern India. JFE has a partnership with India’s JSW Steel, and BPSL is a subsidiary of JSW. JFE will invest 50% in BPSL to form a joint venture. It is said to have the potential to develop into one of India’s largest integrated steelworks through future expansion, raising expectations for capturing the growing Indian market.
◆ Nippon Shinyaku (4516)
4,323 yen (+700 yen)
Hit limit-up, renewing year-to-date high. U.S. biotech company Capricor Therapeutics announced data from the Phase 3 clinical trial for its muscular dystrophy treatment candidate “CAP-1002,” which was perceived as positive results. The two companies have an exclusive sales agreement for the drug in Japan and the U.S. If approved in the U.S., Nippon Shinyaku’s U.S. subsidiary is scheduled to conduct sales and promotional activities.
◆ Uchida Yoko (8057)
9,880 yen (-1,040 yen)
Continued significant decline, falling below 10,000 yen for the first time since late July. After the close on the 3rd, the company announced its Q1 FY2026 (Aug-Oct) results, with operating profit reaching 3.008 billion yen, a 95.6% increase year-on-year. However, demand for terminal updates under the “GIGA School Initiative,” which equips schools with ICT environments, was somewhat anticipated. Despite the strong results, they were perceived as lacking surprise, leading to widespread profit-taking sales.
Industrial Robots Evolve with “Physical AI”!
The world’s largest robotics technology exhibition, the “International Robot Exhibition,” opened on the 3rd at Tokyo Big Sight (Koto Ward). The in-person event runs until the 6th, while the online version has been running since November 19th and is viewable until December 19th. Preceding this, on the 1st, FANUC announced a collaboration with U.S.-based NVIDIA to promote the implementation of “Physical AI (Artificial Intelligence)” in industrial robots. The synergistic effect of combining NVIDIA’s AI platform with FANUC’s robots can be experienced at the International Robot Exhibition venue. FANUC’s announcement has renewed focus on promoting “Physical AI” in industrial robots.
At the “International Robot Exhibition,” exhibits of robots equipped with Physical AI stand out. Companies handling industrial robots and components are also attracting interest in the stock market as “Physical AI” related stocks, showing lively activity.
The table above lists notable “Physical AI” related stocks. As mentioned, following the announcement of collaboration between FANUC and NVIDIA, buying interest in these stocks has become prominent. On the 1st, Yaskawa Electric agreed to collaborate with SoftBank on the social implementation of Physical AI, utilizing SoftBank’s promoted AI-RAN (fusion of AI and RAN=Radio Access Network) and Yaskawa’s AI robotics. As a first step, they will jointly develop use cases for office-oriented Physical AI robots, with demonstrations at the International Robot Exhibition.
Note: Physical AI related stocks were also explained in the October 24th issue, so please refer to that as well.