Tokyo Market Summary: Nikkei Average Continues to Increase, Japanese Stock Presence Sinks Due to Depreciation of Yen, 14 Stocks Decrease from Global Index

Top news
Japanese stocks sink presence due to depreciation of yen, down 14 stocks from the Global Index
US MSCI, which calculates the stock price index, announced on the 14th (15th Japan time) that it will reduce Japanese stocks by 14 stocks from the representative global stock index “MSCI All Country World Index (ACWI)”. The depreciation of the yen reduced the total market value in dollars, and the number of cuts reached a size for the first time in 2 years.
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Japan's Next Yen Buying Intervention, Probability of Utilizing US Bonds Held - BoFA
Bank of America expressed the view that there is a high possibility that if the Japanese currency authorities carry out exchange intervention to support the yen exchange rate in the future, they will use the US bonds they hold.

World stocks hit record highs - US inflation is expected to slow
Global stocks hit record highs ahead of the US inflation report, which serves as a clue to determine trends in US monetary policy. After the MSCI All Country World Index recorded an all-time high on the 14th, it further rose 0.1% on the 15th. The index has risen nearly 6% since its April low. There is widespread optimism that the April US CPI to be announced on the 15th will show a slowdown in core inflation for the first time in 6 months, counteracting the effects of Chairman Powell's remarks showing the possibility of prolonged high interest rates.

Nippon Steel's acquisition of US Steel, “zero” possibility that the US will approve it = top of the US industry
Major US steel company $Cleveland-Cliffs(CLF.US)$Lorenzo Gonçalves, Chief Executive Officer (CEO), said on the 14th $Nippon Steel(5401.JP)$by American peers $United States Steel(X.US)$The possibility that the acquisition agreement will obtain approval from the US government is “zero,” and he stated that “we should return to a clean slate.”

Kanpo Life invests 52.5 billion yen in management companies under the umbrella of the Daiwa Stock Exchange G - 2nd partnership
$Japan Post Holdings(6178.JP)$Under the umbrella $Japan Post Insurance(7181.JP)$with $Daiwa Securities Group(8601.JP)$It was announced on the 15th that they will partner in the asset management field. Kanpo Life will invest 20% in Daiwa Asset Management (AM), which is under the umbrella of the Daiwa Stock Exchange G. As the trend from “savings to investment” progresses, we aim to strengthen asset management capabilities through partnerships.

Notable stocks
NITORI did not meet market expectations even if it secured a 15% lower profit in stock prices
$Nitori Holdings(9843.JP)$It fell sharply for the first time in 5 business days. A temporary 15.44% depreciation of 10,8090 yen was added. On the 14th, it was announced that consolidated net profit for the fiscal year ending 2025/3 (current fiscal year) is likely to increase 6% from the previous fiscal year to 92 billion yen. Although it ensures an increase in profit, it falls below QUICK Consensus's 102.5 billion yen (as of 4/9, 10 companies), which is the average market forecast, and it is being pushed by disgusting sales.

Honda and IBM sign memorandum of understanding on semiconductor and software development for EVs
$Honda Motor(7267.JP)$Is the 15th, rice $IBM Corp(IBM.US)$It was announced that a memorandum of understanding on software technology development has been signed. We will consider joint research to improve the performance of semiconductors used in electric vehicles (EVs) and shorten the software development period. It will lead to early practical application of new technologies such as autonomous driving.

Sumitomo Mitsui Financial Group's net profit for the first fiscal year of 962.9 billion yen, the highest profit for the first time in 10 years - exceeding market expectations
$Sumitomo Mitsui Financial Group(8316.JP)$It was announced on the 15th that consolidated net profit for the previous fiscal year (fiscal year ending 2024/3) was 962.9 billion yen, up 20% from the previous fiscal year. The record high profit was updated for the first time in 10 years. Net profit exceeded the company plan of 920 billion yen, and also exceeded the average analyst forecast compiled by Bloomberg of 934.8 billion yen.

The Sony Group expanded its gains and continued for 3 days. Stock buybacks, 1:5 stock splits, mid-term financial announcements, etc. were used as evaluation materials
$Sony Group(6758.JP)$The increase widened, continued to grow for 3 days, and recovered to the 13,000 yen level. Along with the announcement of financial results on 5/14 the day before, it seems that announcements such as stock buybacks with an upper limit of 30 million shares and 250 billion yen and stock splits of 1 to 5 shares targeting shareholders at the end of September are attracting market interest. Also, it seems that the medium-term management plan announced on the same day with the fiscal year ending 2027/3 as the final year has also received positive reviews from the market.

Distributor: Bloomberg, Nihon Keizai Shimbun, GameBiz, Reuters