Tokyo Market Summary: The Nikkei Average continues to grow, and the possibility that 2 trillion to 3 trillion yen per month will be the lower limit for government bond purchases after the Bank of Japan is reduced - Former Director Miyanoya

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Corporate inflation expectations have risen further, and the view is that the Bank of Japan will consider raising additional interest rates
Corporate medium- to long-term inflation expectations, which are an important factor in the underlying rate of increase in consumer prices that the Bank of Japan emphasizes in monetary policy decisions, have risen further. According to the “corporate price outlook” of the June corporate short-term economic observation survey (tankan) announced by the Bank of Japan on the 1st, the average year-on-year rate of increase in the consumer price index (CPI) expected by companies remains in the 2% range of 2.4% after 1 year, 2.3% after 3 years, and 2.2% after 5 years. Three years later and five years later, respectively, there was a 0.1 point increase from the previous March survey, and there was a positive increase in the range since the 2023/3 survey.

There is a possibility that 2 trillion to 3 trillion yen per month is the lower limit for government bond purchases after the Bank of Japan reduction - Former Director Miyanoya
Mr. Atsushi Miyanoya, a former director of the Bank of Japan and chairman of the NTT Data Management Research Institute, expressed the view that there is a possibility that the reduction plan for government bond purchases decided by the Bank of Japan at the monetary policy meeting at the end of this month will have an impact on financial market regulation, and that there is a possibility that the reduction in monthly purchase amounts from the current 6 trillion yen to 2 trillion to 3 trillion yen will be the lower limit.
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New car sales from January to June fell 13% due to certification fraud, the first level in 13 years
Domestic new car sales volume for 2024/1-6 announced by the automobile industry group on the 1st was 2,127,490 units (based on preliminary reports), down 13% from the same period last year due to suspension of shipments due to certification fraud. This is the level since '21 (2,086,178 units), when there was a shortage of semiconductors. The number of light vehicles fell 18% to 729,839 units, the first low level in 13 years since the Great East Japan Earthquake 11 (724,066 units).

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Lasertech falls sharply, CFO personnel announcements encourage speculative sales
$Lasertec(6920.JP)$It fell sharply. After the transaction ended on 6/28 the previous weekend, it was announced that Yokogawa Hisashi, the new finance manager, will be appointed as an executive officer and chief financial officer (CFO) on 7/1. Regarding the company, in June, Scorpion Capital, known as a short sale investor, indicated a short sale of the company's stock while pointing out suspicions such as fraudulent accounting in reports. The company then denied the suspicion of fraudulent accounting, but it seems that the current CFO personnel announcement was a factor that encouraged speculative sales.

Kawasaki Steam surged rapidly, and the Baltic Index continued its upward trend, and funds flowed into shipping stocks ◇
$Kawasaki Kisen Kaisha(9107.JP)$has grown rapidly. Shipping stocks have been steady, with MOL and NYK Line being bought. The Baltic Shipping Index, which shows price movements in bulk carrier market conditions, has continued to rise since June, and optimism about the future of shipping market conditions is spreading. Furthermore, there is also a view that the volume of marine containers transported for export from China has remained steady, and it seems that funds are flowing into shipping stocks. The shipping industry in the Tokyo Stock Exchange's industry-specific index rose by more than 3%, making it the top rate of increase.

Mitsubishi Heavy Industries - Rear Field Plus Conversion “H3” Unit 3 successfully launched, also bought space-related purchases
$Mitsubishi Heavy Industries(7011.JP)$There was a positive change in the backfield. The successful launch of the large core rocket “H3” Unit 3, which was launched by the Japan Aerospace Exploration Agency (JAXA) after noon on the 1st, has been viewed as material. After launch, it progressed smoothly, and the Earth observation satellite “Daichi 4” was put into orbit.

Sony to start full-scale crypto asset-related business
$Sony Group(6758.JP)$It seems that crypto asset (virtual currency) related businesses will be in full swing. Amber Japan, which operates the crypto asset (virtual currency) transaction service “WhaleFin,” changed its company name to S.BLOX on 7/1, and announced that “WhaleFin” is scheduled to be renewed in the future. According to the release, Amber Japan came under the umbrella of the Sony Group in 2023/8, and it is said that it has operated crypto asset transaction services.
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KDDI continues to grow, and it is reported that “the Ministry of Internal Affairs and Communications and the Ministry of Internal Affairs and Communications will embark on generative AI development specialized in Japanese”
$KDDI(9433.JP)$It continued to grow. The electronic edition of the Nihon Keizai Shimbun reported on 6/30 that “the Ministry of Internal Affairs and Communications and KDDI will embark on joint research on generative AI (artificial intelligence) specializing in Japanese.” It seems that a purchase was made in anticipation of business expansion related to generative AI. Research institutes under the umbrella of the Ministry of Internal Affairs and Communications provide large amounts of learning data created in Japanese. It aims to improve the performance of AI infrastructure that is easy to use domestically by utilizing KDDI's AI technology.

Distributor: Bloomberg, Nihon Keizai Shimbun, Reuters, CoinDesk Japan, MINKABU