Nikkei Average starts falling, Bank of Japan Deputy Governor's virtuous cycle of prices and wages “getting on track”

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Bank of Japan Deputy Governor Himino, Virtuous Cycle of Prices and Wages “Getting on Track” - Report
The Mainichi Shimbun reported on the 30th that Bank of Japan Deputy Governor Himi no Ryozo talked in an interview about the virtuous cycle that the Bank of Japan is aiming for, where prices and wages are combined and rise moderately, “I think this is a mountain range where we will really get on track.” It is said that it oozed an attitude of tenaciously continuing the current monetary easing policy.

The ratio of job offers in May fell to 1.31 times and the unemployment rate remained flat at 2.6%
The effective job offer ratio (seasonally adjusted value) for May announced by the Ministry of Health, Labor, and Welfare on the 30th was 1.31 times, down 0.01 points from the previous month. The decline was the first time in 2 months. Due to profit pressure due to high raw materials, there was a movement to refrain from job offers in the manufacturing and construction industries.

Industrial production fell 1.6% in May and worsened for the first time in 4 months
The preliminary industrial production index (2020 = 100, seasonally adjusted) forecast value for May announced by the Ministry of Economy, Trade and Industry on the 30th was 103.8, down 1.6% from the previous month. The decline was the first time in 4 months. It is above the 19-year average (101.1) before the novel coronavirus epidemic.

Tokyo Stock Exchange announces lifting of ban on active ETFs
The Japan Exchange Group (JPX) announced on the 29th that it has lifted the listing ban on actively managed exchange-traded funds (ETFs) aiming to expand investment returns on the Tokyo Stock Exchange, which is under its umbrella. Listing applications will be accepted starting on the 30th. It is expected that the first batch will go public in the fall of 2023 after going through the screening period.

Prices in the Tokyo metropolitan area rose 3.2% in June, growth expanded due to higher electricity bills
The consumer price index (mid-term preliminary value, 2020 = 100) for the Tokyo district for June announced by the Ministry of Internal Affairs and Communications on the 30th had a composite index excluding fresh food with large fluctuations of 104.8, up 3.2% from the same month last year. Growth increased from 3.1% in May. The decline in energy was reduced in response to the increase in electricity bills. Food remains expensive.

Japan Post to record a loss of 80 billion yen on Rakuten G shares April-6
$Japan Post Holdings(6178.JP)$has financial results for the fiscal year ending 2023/4/6, and is held $Rakuten Group(4755.JP)$Adjustments have been made to record losses on the scale of 80 billion yen in relation to shares of. Approximately 150 billion yen was invested in Rakuten G in 2021, but the company's stock price was sluggish due to difficulties in the mobile phone business, and impairment processing is under pressure. The effect of the partnership with the online shopping business has not improved, and Japan Post is required to refine its strategy.

NRI-3-day decline April-6 operating profit falls 5%, profit decline for the first time in 3 years, building sales reaction
$Nomura Research Institute(4307.JP)$fell for the first time in 3 days. The morning edition of the Nihon Keizai Shimbun dated 30th reported that it became known that the company's 243rd term 1Q (April-6) consolidated operating profit (IFRS) is expected to fall 5% from the same period last year to just under 27 billion yen. According to the article, profit declined for the same period for the first time in 3 years. In addition to the decline in profit from building sales recorded in the same period last year, it seems that system development for Australia and North America is not going well.

Sumitomo Real Estate Vice President Odai said, “Dividends will increase by 7 yen each year”
$Sumitomo Realty & Development(8830.JP)$There are signs of a change in the stock market's evaluation of this. The rate of increase in stock prices for the three months since entering the new fiscal year has reached 20%, which is the highest among the three major real estate companies. Consolidated net profit for the fiscal year ending 2024/3 hit a new high, and strategies for shareholder returns and growth investments have also been well received. Vice President Yoshiyuki Odai emphasized “continuing to increase dividends of 7 yen per year every year,” further strengthening market-oriented management.

Denso's new president “actively promotes M&A” with EVs and autonomous driving
$Denso(6902.JP)$The new president Hayashi Shinnosuke expressed the idea of deepening collaboration with other companies through M&A (mergers and acquisitions) etc. in order to respond to “CASES” such as electrification and autonomous driving. Software development capabilities will also be strengthened in the US and China.

EV battery materials skyrocketing, towards convergence
The price of “battery metal,” a battery material for electric vehicles (EVs), is falling. In addition to temporarily falling to 70% lower from the price in late November 2022, when lithium had soared, cobalt and nickel also fell similarly. This is because demand in China, which is the world's largest EV market, has slowed, and supply and demand have loosened due to the establishment of a production increase system. There are also indications that falling metal prices leading to reduced battery manufacturing costs will boost the spread of EVs.

Overseas team determined profit due to overselling Japanese stocks for the first time in 13 weeks
Purchases by overseas investors, which have supported the high prices of Japanese stocks, have come to an end. According to the trading trends by investment sector for the 3rd week of June (19-23) announced by the Tokyo Stock Exchange on the 29th (total of the Tokyo Stock Exchange and Name Stock Exchange), overseas players oversold spot stocks for the first time in 13 weeks. Sales for profit assurance purposes began due to rapid stock price increases. On the other hand, stock price index futures have been overbought, and there is also a view that the outlook for the outlook has not collapsed.

Is the Bank of Japan's “main opinion” a sign of policy revisions? To be discussed at the July meeting
An early correction theory of long and short interest rate manipulation (YCC) has emerged within the Bank of Japan. Calls for early revisions were taken up in the “main opinions” of the monetary policy meeting in June. Currently, many members of the committee say “there is no need for a review,” but Governor Ueda Kazuo does not deny the possibility of revisions.

Distribution source: Traders Web, Nihon Keizai Shimbun, Bloomberg