Tokyo Market Summary: Nikkei Average Divided by 40,000 Yen, Bank of Japan's Additional Interest Rate Hike in October at Early, Service Prices Weak - Professor Watanabe University of Tokyo

Top news
Material to maintain corporate inflation expectations above 2% and increase the accuracy of achieving the Bank of Japan's price targets
In order to achieve the 2% price stability target set by the Bank of Japan, corporate inflation expectations, which are one of the key indicators, have continued to be steady. It seems that developments to search for the timing of the next interest rate hike will continue while determining important data such as service prices and wage increase trends in small and medium-sized enterprises. Mari Iwashita, chief market economist at Daiwa Securities, assessed in the report that steady corporate profits and price transfer movements were confirmed in the March Tankan, and that the medium-term price outlook also remained above 2%. “It will still take time for the effects of high wage increases to be reflected in service prices, etc.,” and the possibility of additional interest rate increases by the Bank of Japan is seen as a September or October meeting.
RELATED ARTICLES
Based on domestic and foreign economies and inflation trends, speculative movements are seen = finance minister due to exchange

The Bank of Japan will raise additional interest rates in October at the earliest, and service prices will be weak - Professor Watanabe of the University of Tokyo
Professor Watanabe Tsutomu of the University of Tokyo Graduate School, who is from the Bank of Japan and specializes in price research, said that service prices, which are important for determining a virtuous cycle between wages and prices, are on a slowing trend except for special factors, and expressed the view that it will be October at the earliest that the Bank of Japan can move to the next rate hike. I mentioned it in an interview on March 29th.
RELATED ARTICLES
Bank of Japan's government bond purchases continued even after YCC abolished for 5,928.9 billion yen in March

Denso promotes “profit at the beginning of the fiscal year” due to the Nikkei average depreciation of 600 yen
The Tokyo Stock Exchange began on the 1st day of the new fiscal year when the Nikkei Stock Average fell sharply. The decline exceeded 600 yen at one point, and temporarily fell below 40,000 yen for the first time in about 2 weeks during trading hours. What underlies the sale was held as policy holdings last weekend $Toyota Industries(6201.JP)$It was announced that all shares will be sold $Denso(6902.JP)$that's it. Every year, in the 1st week of April, it is easy for domestic financial institutions to make “profit at the beginning of the fiscal year” by selling unrealized and profitable holdings. Denso's announcement seems to have boosted the backs of domestic players who were waiting for the timing of profit determination.

World stock prices rose 9% to the highest price, strong AI and fintech related
The global stock market rose 9% from January to March 2024 to hit a new high. High-tech stocks such as semiconductors and IT (information technology), which are excited by high growth expectations for artificial intelligence (AI), led the way, and the quarterly rate of increase reached a high level for the first time in about 3 years. Generous investment money that has expanded under monetary easing up until now has been bought, supported by expectations of interest rate cuts in the US and Europe and the solidity of the US economy.
RELATED ARTICLES
Open AI opens first Asian base in Tokyo to enhance Japanese language support - stakeholders

Disseminate information, Japanese corporate stock market for the new fiscal year
The stock exchange rate has entered the 2024 fiscal year. Can Japan continue to be an investment country? One of the decisions is the ability of companies to disseminate information. PBR (stock price net asset ratio) reforms led by the Tokyo Stock Exchange, Mr. Buffett's visit to Japan, and even the shift of funds from China. Various factors have overlapped, and attention to Japanese stocks has increased since last year, but “investors around the world still don't know Japanese companies as well as Japanese people think.” In the future, companies will need to make efforts to attract money on their own. The message from the operator, who had been watching the Japanese market, was mixed with expectations and frustration.
RELATED ARTICLES
In the new fiscal year, there will also be one of the biggest purchases of Japanese stocks by overseas players

Notable stocks
Rakuten G begins discussions on financial business restructuring and maintains Rakuten Bank's listing
$Rakuten Group(4755.JP)$On the 1st, it was announced that discussions had begun on the restructuring of financial subsidiaries. Is it listed around October $Rakuten Bank(5838.JP)$Combine Rakuten Securities Holdings (HD) and Rakuten cards into one group. We aim to enhance corporate value through integrated operation and improve services by strengthening cooperation between companies. Competition is intensifying, as SBI Securities has made stock trading fees free. The financial subsidiary of Rakuten G is once again rushing to strengthen the financial business while promoting cooperation with the Rakuten Economic Zone, which is its strength.
RELATED ARTICLES
Rakuten Bank has updated high prices since listing, and reports of Rakuten Group's financial subsidiary restructuring are “discussed with the Board of Directors”

Mizuho Financial Group enters into M&A advice for small and medium-sized enterprises and invests in new companies - stakeholders
$Mizuho Financial Group(8411.JP)$It was officially announced on the 1st that it will advance into the M&A (merger/acquisition of companies) advisory business for small to medium enterprises. We aim for monetization by scooping up the business succession needs etc. of client companies.

FANUC's stock price is temporarily 5% high and I like the improvement in business confidence in China
Capital investment-related stocks are high. $Fanuc(6954.JP)$It added 4420 yen, which is 235 yen (5.61%) higher at one point compared to the previous weekend. The manufacturing purchasing managers' business index (PMI) for 2024/3 announced by the China National Bureau of Statistics on March 31 was 50.8. It was 1.7 points higher than the previous month, and surpassed 50, which is the boundary between strong and poor performance for the first time in 6 months. Concerns about the slowdown in the Chinese economy have abated slightly, $Hitachi Construction Machinery(6305.JP)$Ya $YASKAWA Electric(6506.JP)$、 $Casio Computer(6952.JP)$Purchases were made for stocks positioned as being related to China, such as.

Toyota Textile continued to decline drastically for 3 days, and all Toyota Textile shares held by Denso were gradually sold
$Toyota Industries(6201.JP)$It was drastically reduced by 10% and continued to fall for 3 days. After the end of the transaction on March 29, Denso announced that it would sell all 29,647,895 shares (9.10% of the number of issued shares) held by Denso over a maximum of two and a half years, and it seems that the movement to be wary of deterioration in supply and demand is intensifying. Furthermore, it is said that the business relationship with Toyota-ori will continue to be maintained and strengthened even after the sale is completed.