Tokyo Market Summary: Nikkei Average Falling Interest Rate Rises, “Negative Impact” on Nearly 40% of Companies - Imperial Data Survey

Top news
Interest rate rise, “negative impact” on nearly 40% of companies - Imperial Data Survey
Teikoku Databank investigated corporate opinions on the impact of rising interest rates, and announced results on the 21st stating that “the negative impact is greater” was at the top with 37.7%. “I can't say either (offset by both plus and minus) continued at 33.2%. By industry, “real estate” has the highest “negative impact” at 47.7%, followed by “manufacturing” at 42.6%.

US KKR prepares to issue yen bonds and joins overseas issuers seeking low-interest procurement
US investment company $KKR & Co(KKR.US)$is investigating investor demand for the issuance of yen denominated bonds. It is expected that they will join overseas issuers moving to raise funds before Japan's yield rises further due to additional interest rate hikes observed by the Bank of Japan. According to Bloomberg data, KKR is issued regularly in yen, and this time, which is being examined in multiple bonds, it will continue with last May. The Republic of Indonesia and $Berkshire Hathaway-A(BRK.A.US)$The yen bonds recently issued by have attracted strong demand from Japanese investors.

Long-term interest rates rise, 0.980% at one point = 11-year high level
In the Tokyo bond market on the 21st, the circulation yield of new 10-year government bonds (374 times), which is an indicator of long-term interest rates, temporarily rose to 0.980% (bond prices fell). High level for the first time in about 11 years since 2013/5.
RELATED ARTICLES
“Keeping a close eye on the market environment, careful dialogue is important” - Finance Minister Suzuki with long-term interest rates approaching 1%

LME copper falls from record high - sense of alarm over weak spot demand signals
The copper exchange rate on the London Metal Exchange (LME) fell due to trading on the 21st Asian time. It had hit a record high the day before. A sense of alarm spread over the possibility that the market price was ahead of weak physical fundamentals.

Notable stocks
SoftBank to issue 80 billion yen corporate bonds, strong demand due to rising interest rates - issuance amount doubled
Major domestic telecommunications companies $SoftBank(9434.JP)$will issue corporate bonds totaling 80 billion yen. While interest rates are rising due to the cancellation of negative interest rates by the Bank of Japan, the amount issued was increased from the initial amount of around 40 billion yen, and final investor demand exceeded 1 times. On the 21st, SoftBank decided the conditions for issuing 3-year bonds and 5-year bonds. The issuance amount and interest rate were 20 billion yen (0.828%) and 60 billion yen (1.189%), respectively. When 3-year bonds and 5-year bonds were also issued in July 2023, interest rates were 0.32% and 0.82%.

SOMPO --- sharp decline, negative profit reduction guidance for the current fiscal year
$Sompo Holdings(8630.JP)$The sharp decline continued. Financial results for the fiscal year ending 24/3 were announced the day before, and net profit was 416.1 billion yen, up from the previous plan of 324 billion yen, while profit for the fiscal year ending 25/3 is 230 billion yen, which is expected to decrease 44.7%. Assume an increase in insurance claims and expenses, an increase in natural disaster reserves, and a decrease in transient profits. The annual dividend is planned to be 112 yen, an increase of 12 yen from the previous fiscal year after taking stock splits into account. We announced the implementation of treasury stock acquisitions of 40 million shares, which is 4.04% of the number of issued shares, with an upper limit of 77 billion yen. The relative weakness of guidance can be viewed negatively.

Distributor: Bloomberg, Nihon Keizai Shimbun, Jiji Press