Daily Briefing · 2026-11-07

and China held a phone call, discussing the state of the trade friction truce ahead of the leaders' summit. In the U.S. market, the Nasdaq index rose as much as 2 percent, with buybacks in semiconductor stocks leading the market, but investor caution remains strong and market uncertainty continues. President Trump replaced his chief of staff, and a shift in the administration's policy direction is expected, raising concerns over uncertainty for markets and corporate strategy. October's U.S. employment figures increased by 165,000, exceeding market expectations, confirming the robustness of the labor market, while a strong dollar and upward pressure on U.S. interest rates are raising concerns as downward factors for the yen exchange rate and Japanese stocks. The Nikkei average fell by more than 4,300 yen after the midterm elections, with the Trump administration's policy uncertainty having a major negative impact on financial markets. A subsidiary of Japan Tobacco was placed under temporary administration by a presidential decree in Russia, raising concerns over asset seizure and negative effects on JT's earnings and management structure. Tesla announced the end of Cybertruck production, with plans to reduce production capacity at its Texas plant by mid-2027, and related sales and profits are expected to decline in stages. Nippon Steel revised its net profit forecast upward by 51 percent on the strength of U.S. Steel, raising its net profit forecast for this fiscal year to 440 billion yen. KDDI's president apologized at an earnings announcement, bringing to the surface management issues concerning corporate trust and brand value. Following the 10-year prison sentence handed down to Hong Kong democracy activist Joshua Wong, 10 countries including Japan, the U.S., and European nations issued a statement of condemnation, raising concerns over rising tensions in international relations and declining confidence in Hong Kong's business environment. Iran presented conditions for resuming negotiations with the United States, raising concerns over rising crude oil prices and increased uncertainty for Middle East-related investment amid escalating tensions. A series of bomb threats against passenger aircraft occurred in the Czech Republic, Spain, and elsewhere, with flight suspensions and reduced passenger numbers expanding economic losses for the airline industry. One year has passed since Prime Minister Takaichi's remarks on a Taiwan contingency, and the Japanese government is seeking to improve relations with China, but uncertainty continues regarding economic cooperation and business opportunities between the two countries.