Tokyo Market Summary: Nikkei Average rises by 907 yen and breaks through 155 yen after the Bank of Japan meeting, preparations are in place - BoFA

Top news
There is a possibility of exchange intervention due to a break through 155 yen after the Bank of Japan meeting, preparations are ready - BoFA
Bank of America Securities believes that if the yen exchange rate tests 1 dollar = 155 yen against the dollar in response to the Bank of Japan's monetary policy meeting, there is a possibility that the Ministry of Finance will step through exchange intervention. President Yamada Shusuke analyzed that there is a possibility that preparations for exchange intervention have been prepared from the viewpoint of “currency diplomacy,” “rise in the dollar and yen,” “public opinion,” and “volatility,” compared to the beginning of April when it exceeded 152 yen. In currency diplomacy, in addition to trying to gain understanding from the United States and the 7 major countries (G7), there is a possibility that coordination with South Korea was also discussed, indicating recognition that the hurdle of exchange intervention has declined.

There are voices within the Liberal Democratic Party that additional interest rate hikes by the Bank of Japan are premature - there is also a view that the end of the year will be difficult
As the depreciation of the yen progresses rapidly, there are voices from within the Liberal Democratic Party that it is premature to observe additional interest rate increases by the Bank of Japan. Ahead of political schedules such as the presidential election and the dissolution of the House of Representatives and the general election that will be discussed later this year, there is a desire to eliminate materials that could give anxiety to people's lives as much as possible. Member of the House of Councilors Nishida Shoji dismissed the possibility of additional interest rate hikes in July or September as “impossible.” It was also pointed out that small and medium-sized enterprises are under pressure to raise wages to make up for labor shortages, and there is no spare capacity to accept an increase in borrowing burdens due to interest rate hikes.

Real growth rate of 1.2% in fiscal year 23, 0.3% in fiscal year 24 NEEDS forecast The recovery in consumption and capital investment will continue in fiscal year 24
According to forecasts incorporating information on various economic indicators published up to 2024/4/23 into the Japanese economic model of Nikkei's economic/financial data service “NEEDS,” the real growth rate for fiscal year 23 is expected to be 1.2%, and fiscal year 24 is 0.3%.

Notable stocks
Renesas's stock price is 10% higher than expected, and the outlook for US TI is favorable
$Renesas Electronics(6723.JP)$has grown rapidly. I added 2519 yen 50 yen which was 10.45% higher at one point. A major US semiconductor company that has strengths in automotive semiconductors similar to Renesas $Texas Instruments(TXN.US)$The earnings forecast for the fiscal year ending 2024/4/6 announced by (TI) on the evening of the 23rd exceeded market expectations. Associative purchases, which are expected to perform well, have an advantage even for Renesas, which announces financial results for the fiscal year ending January to March 24 on the 25th.

Reports say Asahi Kasei temporarily fell 5% and invested 20 billion yen in EV battery factory
$Asahi Kasei(3407.JP)$It's soft. The electronic edition of the Nihon Keizai Shimbun reported on the 24th that “Asahi Kasei will establish a new factory for the main components of batteries for electric vehicles (EVs) in Canada.” The investment amount is expected to be on the scale of 20 billion yen. While future business expansion is expected, concerns about profit pressure associated with large-scale capital investments increased, and there was a scene where the company's stock was sold to 1046 yen, which temporarily depreciated 4.8% in response to reports. After that, it showed reluctance to decline.

IHI plummeted in the rear and falsified fuel consumption rate measurement data with marine engines
$IHI(7013.JP)$According to a spokesperson for the company's subsidiary, IHI Engine, described a numerical value different from the actual measured fuel consumption rate in the test run report after the marine engine was assembled. The same report was first reported by NHK based on interviews with people involved. A spokesperson for the company said in a Bloomberg telephone interview that it was true that there was an incident reported by NHK at its subsidiary IHI Engine. On top of that, he stated that they are working to investigate the facts and investigate the cause, and that timely disclosure is scheduled for this afternoon.

INPEX and petroleum resources are expensive, and WTI prices have risen to the 83 dollar range◇
$Inpex(1605.JP)$Ya $Japan Petroleum Exploration(1662.JP)$It's expensive. The US crude oil futures exchange rate on the 23rd rose to 83.36 dollars per barrel, 1.46 dollars higher than the previous day for the June term of WTI (West Texas Intermediate). The confrontation between Israel and Iran is in a lull state, but there is a state of tension over the Palestinian Autonomous Region, and a sense of alarm about the situation in the Middle East continues.