Tokyo Market Summary: Nikkei Average continues to grow, Toyota invests in EVs etc. to issue 100 billion yen in sustainable bonds

Top news
Domestic construction orders increased 20.1% in April Nikkenren, leading by large buildings
The Japan Federation of Construction Industries (Nikken Ren, Tokyo/Chuo) announced on the 26th that domestic construction orders received by 93 member companies in April were 1,08.5 billion yen, up 20.1% from the same month last year. In addition to large office buildings over 100 billion yen, non-manufacturing industries such as commercial facilities and condominiums are leading the way. Orders for large stadiums also contributed in rural areas.

Enterprise service prices rose 1.6% in April positive for 26 consecutive months
The April corporate service price index (2015 average = 100) announced by the Bank of Japan on the 26th was 108.6, up 1.6% from the same month last year. 26 consecutive months of positive. The growth rate slowed 0.1 points from the previous month. There were movements reflecting the rise in labor costs in worker dispatch services and information communication. Lodging services are also rising against the backdrop of a steady recovery in demand.

Generative AI Rules G7 Practitioner Group meets for the first time on the 30th
At the press conference after the cabinet meeting on the 26th, Minister of Internal Affairs Matsumoto Takeaki announced the launch of the “Hiroshima AI Process,” a framework by cabinet ministers in charge of discussing the use of generative AI (artificial intelligence) agreed upon at the seven major countries' summit (G7 Hiroshima summit). A working group meeting with practitioners will be held on the 30th.

Notable stocks
Toyota invests in EVs etc. to issue 100 billion yen in sustainable bonds
$Toyota Motor (7203.JP)$On 6/1, corporate bonds “sustainability bonds,” which limit use to businesses leading to solving environmental and social issues, will be issued for a total amount of 100 billion yen. Documents were submitted to the Tokai Finance Bureau on the 26th. In addition to advanced safety, advanced driving technology, and electric vehicle (EV) development, the funds raised will be used for capital investment and increased use of renewable energy.

MUFG issues large bonds of 570 billion yen, and AT1 also builds up and increases - good corporate bond supply and demand reflection
$Mitsubishi UFJ Financial Group (8306.JP)$On the 26th, the issuance conditions for a total amount of 570 billion yen were decided on 3 corporate bonds, including 330 billion yen in permanent subordinated bonds (AT1 bonds). The market for AT1 bonds was shaken by the Credit Suisse Group crisis, but they gathered demand from domestic investors seeking yield and greatly accumulated and increased the amount issued, showing the strength of the domestic corporate bond market.

Marubeni and Iwatani to mass-produce green hydrogen in Australia
$Marubeni (8002.JP)$with $Iwatani (8088.JP)$、 $Kansai Electric Power (9503.JP)$It became known on the 26th that they will embark on mass production of “green hydrogen,” which is manufactured using renewable energy in Australia. The basic design of the business will be completed by '24, and we aim for mass production after '28. The policy is to gradually expand the production volume of green hydrogen to 260,000 tons per year, which is the largest in the world, and it will be imported into Japan as fuel for thermal power generation.

Basic agreement on joint development of 8-inch SiC substrates with Mitsubishi Electric - Tsuki Shinmai Coherent
$Mitsubishi Electric (6503.JP)$It continues to grow. The company announced on the 26th that it had made a basic agreement with optical component manufacturer Coherent (Pennsylvania, USA) on joint development of 8-inch SiC (silicon carbide) substrates for the power electronics market.

Toppan Printing - significant growth collaborating with Aisley in the talent avatar business = Nikkei
$Toppan Holdings (7911.JP)$Significant increase continued. The electronic edition of the Nihon Keizai Shimbun reported at 12:40 on the 26th that the company will collaborate with Aisley (Shibuya-ku, Tokyo), which handles talent arrangements, on a high-resolution avatar (alter ego) business that imitates humans.