Tokyo Market Summary: Nikkei average fell, BOJ adjusted interest rate operation, allowing long-term interest rates to exceed 0.5%.

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Bank of Japan adjusts interest rate operations, allowing long-term interest rates to exceed 0.5%.
At the monetary policy meeting held by the Bank of Japan on the 28th, it was decided to revise the yield curve control (YCC) policy, with the upper limit of long-term interest rates set as a target of 0.5% and allowing it to exceed 0.5% to a certain extent depending on market trends. The aim is to flexibly manage the policy of suppressing interest rates through massive purchases of government bonds and alleviate market distortions.

Bank of Japan purchases unlimited 10-year bonds at 1%, significantly raising the level.
The Bank of Japan notified market participants on the afternoon of the 28th that it will implement an "indicated bid operation" to purchase new 10-year bonds, which serve as indicators of long-term interest rates, unlimitedly. It will buy new 10-year government bonds at 1.0% without limits. It had been implemented at 0.5% in the morning of the same day, but decided to significantly raise the level at the monetary policy meeting.

Bank of Japan raises inflation forecast to 2.5% for the fiscal year 2023.
After the Bank of Japan's monetary policy meeting on the 28th, it published an outlook report on the economic and price situation. The forecast for the year-on-year rise in the Consumer Price Index (excluding fresh food = Core CPI) for fiscal 2023 has been upwardly revised to 2.5%. For fiscal 2024, it is 1.9%, and for fiscal 2025, it is 1.6%, with the expectation that the government and the Bank of Japan will continue to aim for price stability around 2%. There is a trend of companies passing on the higher costs to prices.

Toyota achieves record high global production in January-June, remains the world's top seller.
$Toyota Motor (7203.JP)$Toyota announced that its group's global production volume for January-June 2023, including Daihatsu Motor Co., increased by 10% compared to the same period last year, reaching a record high of 5.62 million units. Contributing to this record was the easing of semiconductor shortages and the expansion of production capacity in North America and Asia. Global sales reached 5.41 million units, a 5% increase, ensuring Toyota's position as the world's top seller for the fourth consecutive first half of the year. $Hino Motors (7205.JP)$Toyota partially sells KDDI shares, reducing its holdings by 20%, equivalent to 250 billion yen.

$Toyota Motor (7203.JP)$owns $KDDI (9433.JP)$株の一部を売却する方針を固めたことが28日、わかった。保有分の5分の1程度（約250 billion円）を売却する見通し。トヨタはKDDIの大株主で、KDDI前身のひとつの日本移動通信（IDO）などに出資していた。資産効率の低い政策保有株を売却し、電気自動車（EV）など電動化シフトに資金を充てる。

半導体原料生産に20 billion円補助　経産省、JFEスチールなど
経済産業省は28日、半導体原料の生産設備などに最大20 billion円を補助すると発表した。JFEスチールや $Iwatani (8088.JP)$など7社を対象とする。半導体の原料となる希ガスの生産やヘリウムの備蓄などにかかる費用を支援する。国内での安定的な半導体生産に向け、原料の確保を後押しする。

関西電力、高浜原発1号機を午後に再稼働　長期運転へ
$Kansai Electric Power (9503.JP)$は28日午後、高浜原子力発電所（福井県高浜町）1号機を再稼働する。東日本大震災以降、運転を止めており、12年ぶりの稼働となる。高浜1号機は運転開始から48年が経過し、国内に残る原発としては最も古い。電力大手による原発の長期間運転が始まると印象づけることになりそうだ。

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三菱ＵＦＪは後場上げ幅拡大、日銀がＹＣＣ柔軟化・利回り１％での連日指し値オペ実施へ
$Mitsubishi UFJ Financial Group (8306.JP)$The stock [stock code] expanded its gains in the afternoon. The Bank of Japan announced at its financial policy meeting held by April 28 that it will relax the operation of the yield curve control (YCC). The upper limit of the fluctuation range of long-term interest rates will continue to be around 0.5%, but the target for the 10-year government bond yield operation will be carried out on a principle basis at a yield of 1.0% every business day.

Yakult [stock code] fell sharply in the afternoon, despite a 15% increase in operating profit for the first quarter, which missed consensus.
$Yakult Honsha (2267.JP)$[Stock code] fell sharply in the afternoon. The company announced at 2:00 p.m. on the 28th that its consolidated operating profit for the first quarter (April-June) of fiscal year 24.3 was 17 billion yen (a 15.0% increase compared to the same period of the previous year). The market consensus was 17.8 billion yen.

Denso [stock code] is weak, despite revising its forecast for net profit for the current fiscal year upward, which fell short of market expectations.
$Denso (6902.JP)$[Stock code] is weak. The company announced an upward revision of its consolidated performance forecast for the fiscal year ending March 24, raising the forecast for net profit from the previous 383 billion yen to 444 billion yen (an increase of 41.1% compared to the previous year). In addition, the company announced a 1-for-4 stock split and increased dividends. However, the revised net profit forecast fell short of market consensus. Given the rapid appreciation of the yen in the foreign exchange market at the moment, the buying sentiment is limited.

Nidec [stock code] reduces its losses as news of Minister of Economy, Trade and Industry Niizumi supporting the company's production capacity improvement for industrial robot decelerators with 40 billion yen spreads.
$Nidec (6594.JP)$[Stock code] reduces its losses. According to Reuters, Minister of Economy, Trade and Industry Yasutoshi Nishimura reportedly stated at a press conference after the cabinet meeting on the 28th that the government will support Nidec's production capacity improvement for industrial robot decelerators with 40 billion yen.

M3 [stock code] fell significantly as the Bank of Japan discussed a proposal to tolerate YCC exceeding the upper limit of 0.5% amidst reports. Selling pressure on growth stocks increased.
$M3 (2413.JP)$It dropped significantly. The morning edition of the Nikkei newspaper dated the 28th reported that the Bank of Japan will discuss a revision to the long and short-term interest rate operation (Yield Curve Control, YCC) at the financial policy decision meeting held today.