The Nikkei Average continues to fall, and the Bank of Japan's government bond holdings hit a record high of 53.3%

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Bank of Japan's government bond holdings hit record high of 53.3%
According to the fund circulation statistics for the fiscal year ending 2023/1/3 announced by the Bank of Japan on the 27th, the Bank of Japan's government bond holding ratio (based on market value excluding treasury short-term securities) reached a record high of 53.3% at the end of 23/3. The holding ratio has exceeded 50% for 3 consecutive quarters. Purchases of government bonds continue to expand in order to keep long-term interest rates at a low level while maintaining large-scale monetary easing.

ECB Forum kicks off with discussions between Japan, the US, Europe, the UK, and top central banks
The international financial conference “ECB Forum” hosted by the European Central Bank (ECB) opened on the 26th in Sintra, Portugal. Approximately 170 people, including central bank officials and academics, gather to discuss how monetary policy should be to control inflation. On the last day, the 28th, top central banks from Japan, the US, Europe, and the UK will participate in the debate.

The outlook for Japanese stocks is brighter than that of other developed countries - BlackRock
Against the backdrop of the Bank of Japan's continued monetary easing and corporate reforms that benefit shareholders, interest in Japanese stocks is once again growing among investors this year, and Black Rock Investment Institute strategists are reviewing underweight judgments against Japanese stocks. The team led by both Jean Bobin and Wei Li pointed out in the weekly market outlook on the 26th that the outlook for Japanese stocks is brighter compared to other developed countries.

National Tax Agency increases inheritance tax and burden on upper floors to prevent condominium tax savings
The National Tax Agency has solidified a policy to review inheritance tax calculation rules to prevent “condominium tax savings” and “tawaman tax savings.” A new calculation formula reflecting actual prices has been introduced. When the discrepancy (difference) between the valuation value of the condominium and the actual price is about 1.67 times or more, the valuation value will rise, and it is expected that the higher the floor, the higher the floor, the higher the tax amount.

Nissan focuses on the final agreement with Renault at today's general shareholders' meeting
$Nissan Motor(7201.JP)$An ordinary general meeting of shareholders will be held in Yokohama City from 10:00 a.m. on the 27th. What will the management team, including President and Chief Executive Officer (CEO), talk about the review of capital relationships agreed with Renault France, director personnel for the new fiscal year, shareholder returns, etc.

Mitsubishi UFJ Trust Bank invests in emerging blockchain companies
$Mitsubishi UFJ Financial Group(8306.JP)$will invest in a blockchain (distributed ledger) technology development data chain (Tokyo/Port). The investment ratio is 1%. The amount is undisclosed, but it is estimated to be just under 100 million yen. Until now, technical alliances have been made to create infrastructure that makes it easy to exchange stablecoins backed by yen, etc. We aim to promote business through capital alliances.

Otsuka HD - Solid Antipsychotic Drug, Efficacy Confirmed for Behavioral Disorders Associated with Dementia Domestic Phase 3
$Otsuka Holdings(4578.JP)$It's solid. The company announced at 8:30 on the 27th that the main evaluation items were achieved and efficacy was confirmed in the domestic phase 3 test of the antipsychotic drug “brexpiprazole,” which aims to add efficacy for behavioral disorder (agitation) associated with Alzheimer's dementia carried out by its subsidiary Otsuka Pharmaceutical.

Panasonic HD President “Aim for PBR 2 to 3 times”
$Panasonic Holdings(6752.JP)$On the 26th, President Kusumi Yuki said “I want to increase it with the goal of 2 to 3 times” about PBR (stock price net asset ratio), which is an investment index used to determine overvaluation/undervaluation of stock prices, at the ordinary general shareholders' meeting held in Osaka city.

Yoshi Shiono acquires Rice Pharmaceutical for 14.3 billion yen to develop new drug resistance
$Shionogi(4507.JP)$It was announced on the 26th that it will acquire the US pharmaceutical company Qpex Biopharma, which handles the development of therapeutic agents for infections caused by bacteria with drug resistance (AMR). Approximately 14.3 billion yen (100 million dollars) will be invested, and it will become a wholly owned subsidiary in early July. If clinical trials of new drugs under development progress or approval for sales etc. are obtained, a maximum of approximately 5.7 billion yen will be additionally paid to current shareholders in total.

3 reasons why Japanese stocks are still undervalued (Masayuki Kubota)
The Nikkei Stock Average hit a high after the bubble, driven by foreign investors' purchases, and is approaching 38,915 yen, which was set in 1989/12. I anticipate that it will exceed the record high and rise to the 40,000 yen range within 2 years at the earliest, or 4 years at the latest. 1. The sharp rise did not turn into a bubble 2. There are 3 driving forces that increase 1 share profit, and there are 3 drivers that increase the EPS of companies listed on the Tokyo Stock Exchange. These are (1) overseas profit growth, (2) inflation, and (3) share buybacks. Combining these three, EPS is expected to increase at an average annual rate of nearly 6%, and a total increase of 25.8% over 4 years. 3. Structural change called inflation

Air cargo exports fall 28% in May, sluggish to Asia
The air cargo export volume (based on consolidated cargo) from Japan in May, compiled by the Air Cargo Transport Association (Tokyo/ Central), was 57,733 tons, down 28% from the same month last year. It fell below the previous year for 17 consecutive months. The rate of decline of around 30% will continue in 2023.

Distribution source: Traders Web, Nihon Keizai Shimbun, Bloomberg