Tokyo Market Summary: The Nikkei Stock Average and the closing price are also the “FOMO market” called by semiconductor stocks in the 40,000 yen range for the first time in history

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●The Nikkei Average ended at 40109.23 yen, 198.41 yen higher than the previous business day
● The Nikkei Stock Average and closing price are also the first in history in the 40,000 yen range
●The “FOMO market” called by semiconductor stocks in the 40,000 yen range of the Nikkei average
● Economic transformation efforts, positive evaluations are encouraging = Nikkei 40,000 yen for Chief Cabinet Secretary
● Bonds rise, US interest rates fall, Bank of Japan operations remain unchanged - tomorrow's 10-year bond bidding will be heavy
● Attention to the handle: $Rakuten Group(4755.JP)$、 $Mizuho Financial Group(8411.JP)$、 $Tokyu(9005.JP)$etc
-MooMoo News Japan Stock Zeber

Market Overview
Today's Nikkei Stock Average ended at 40109.23 yen, 198.41 yen higher than the previous business day, and the Tokyo Stock Price Index (TOPIX) fell 3.14 points to 2706.28 in the Tokyo Stock Exchange.

Top news
First time in history for the Nikkei Stock Average and closing price in the 40,000 yen range
The Nikkei Stock Average continued to grow in the Tokyo Stock Exchange on the 4th, and the closing price ended at 40,109 yen 23 yen, 198 yen 41 sen (0.5%) higher than the previous weekend, and it was in the 40,000 yen range for the first time in history. In the morning, the increase exceeded 400 yen and hit the 40,300 yen range at one point. Semiconductor-related stocks riding the generative AI (artificial intelligence) boom led the rise in the Tokyo market against the backdrop of US high-tech stock appreciation the previous weekend.

The “FOMO market” called by semiconductor stocks in the 40,000 yen range of the Nikkei average
The Nikkei Stock Average began with continuous growth in the Tokyo Stock Exchange on the morning of the 4th, and reached the 40,000 yen mark for the first time during trading hours. At one point, there was a scene where it was raised to 40,314 yen, which is 403 yen higher than the previous weekend. What has boosted the Nikkei Average into an unexplored area is semiconductor-related, where an increase in demand for the practical application of generative AI (artificial intelligence) is expected. The “FOMO (Fear Of Missing Out = fear of being left behind) market,” where the purchases of investors who don't fall behind the sharp rise in the Nikkei Average led by semiconductor stocks invite buying, has intensified.

Economic transformation efforts, positive evaluations are encouraging = Nikkei 40,000 yen for Chief Cabinet Secretary
Chief Cabinet Secretary Hayashi Yoshimasa stated at a press conference on the morning of the 4th in response to the fact that the Nikkei Stock Average was in the 40,000 yen range for the first time in history, “I feel very encouraging that there are positive evaluations of efforts aimed at Japanese economic transformation, including those involved in the Japanese economy,” such as wage increases that do not lose to high prices and strengthening the earning power of companies. He said that he would like to steadily proceed with initiatives without being disappointed by the level of stock prices.

Bonds rise, US interest rates fall, Bank of Japan operations remain unchanged - tomorrow's 10-year bond bidding will be heavy
The bond exchange rate rose on the 4th. The decline in US interest rates, which received sluggish economic indicators, and government bond purchase operations where the Bank of Japan left the purchase amount unchanged are boosting the market price. The upper price is limited due to caution against 10-year government bond bidding to be held on the 5th.

Oasis CIO is very bullish on Japan - lots of room for M&A deals
Seth Fisher, who is the founder of the Hong Kong hedge fund management company Oasis Management known as an activist (talkative investor) and serves as the chief investment officer (CIO), expressed recognition that there is room for even more dealmaking for Japanese companies in the process of improving profitability.

GPIF's Japanese Stock ESG Index changes construction method - incorporated stocks doubled
The Pension Reserve Management and Operation Independent Administrative Agency (GPIF) announced on the 4th that it has reviewed methods for constructing indices used in ESG (environment/social/corporate governance) investments. Along with this, the number of incorporated stocks has more than doubled from before.

Capital investment grew at a high rate for the first time in 17 years, and there is also a view that GDP revisions are a positive shift
According to corporate enterprise statistics (preliminary figures) released by the Ministry of Finance on the 4th, capital investment in all industries (excluding finance and insurance) for the 2023/10-12 fiscal year showed high growth for the first time in 17 years since the same quarter in 2006. There is a view that there is a possibility that real gross domestic product (GDP), which had negative growth for 2 consecutive quarters at the bulletin stage, will turn positive due to revised values.

Notable stocks
Loan balances from major banks including Rakuten G and Mizuho Bank reduced by 40% - cash flow issues
$Rakuten Group(4755.JP)$ by $Mizuho Financial Group(8411.JP)$It became clear in the convocation notice for the Annual General Meeting of Shareholders disclosed on the 4th that the balance of loans from major banks was reduced by about 40% in one year until the end of 2023. It has once again come to light how they are facing the issue of securing funds for redeeming huge corporate bonds.

Tokyu - Capital and business alliance with Azira, a robust AI security system developer
$Tokyu(9005.JP)$It's solid. The company announced on the 4th that it has formed a capital and business alliance with Azira (Machida-shi, Tokyo), which develops AI security systems.

Mitsubishi Research Institute - Commissioned a “Communication System Verification Survey for Level 4 Autonomous Driving” from the solid Ministry of Internal Affairs and Communications
$Mitsubishi Research Institute(3636.JP)$It's solid. The company announced on the 4th that it has been selected as a management operator for the Ministry of Internal Affairs and Communications Regional Digital Infrastructure Utilization Promotion Project (Autonomous Driving Level 4 Verification Type). Through this work, it is said that requirements for remote monitoring systems and other communication systems necessary for safe autonomous driving will be verified through social verification, and social implementation of region-limited level 4 autonomous driving mobility services will be supported.

Eastern Network - Kyuten TS Transportation Co., Ltd. became a subsidiary
$TOHBU NETWORK(9036.JP)$has skyrocketed. On the 1st, at an extraordinary board meeting held on the same day, the company resolved to conclude a share transfer agreement to acquire 100% of the total number of issued shares of TS Transportation from Japan Air Liquide (Minato-ku, Tokyo), which is an existing shareholder, and announced that the company will become a subsidiary.

Nikki Technology continues to expand rapidly, and a stock buyback with an upper limit of 1 million shares will be carried out
$Japan Foundation Engineering(1914.JP)$It continues to grow rapidly. The announcement that a stock buyback will be carried out after the end of trading on the 1st of the previous weekend has been well received. The upper limit is 1 million shares (5.00% of the number of issued shares) or 500 million yen, and the acquisition period is from 5/15 to 2/28 next year. In addition to improving capital efficiency and returning profits to shareholders, it is intended to implement flexible capital policies in response to changes in the business environment.

Distributor: Bloomberg, Nihon Keizai Shimbun, Jiji Press, QUICK Money World, Traders Web、Reuters