Tokyo Market Summary: The Nikkei Average falls from the highest price, and profit determination sales are also there

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10-year corporate bond spreads widened due to BOJ additional interest rate hike observations, reflecting investors' cautious attitude
While there are growing observations that the Bank of Japan will implement additional interest rate hikes as early as this month, investors' demand for 10-year bonds has declined in the corporate bond market, and spreads (additional interest rates) at the time of new issuance are expanding. $Chugoku Electric Power(9504.JP)$Ya $Tohoku Electric Power(9506.JP)$Spreads have expanded due to the recent issuance of bonds, and an increase in financing costs can be seen mainly for companies with a high issuance frequency. $NEC(6701.JP)$Ya $KDDI(9433.JP)$They also paid a hefty premium for issuing 10-year bonds. $Nomura Real Estate Holdings(3231.JP)$Due to market instability, the issuance of 10-year bonds was postponed due to planned green bonds (environmental bonds).

Bitcoin is low for the first time in 4 months due to uncertainty and supply concerns surrounding the US presidential election
The crypto asset (virtual currency) Bitcoin fell to a low for the first time in 4 months due to trading on the 5th. Weekly performance is expected to be the worst in the past year. The sense of uncertainty surrounding the continuation of the election campaign for US President Biden and concerns about the possibility that the supply of bitcoins will expand have become serious. Bitcoin fell 5% to 55,366 dollars, the lowest since the end of February. It's 10% lower on a weekly basis. Ether fell 8% to 2891 dollars and hit a low for the first time in a month and a half.

Japan's “10 trillion yen club” has the largest number of 19 companies, and Hitachi and Mitsui
The number of Japanese companies with a total stock market value of 10 trillion yen or more is increasing. As of the 4th, when the Nikkei Stock Average and the Tokyo Stock Price Index (TOPIX) all hit an all-time high, it was a record high of 19 companies, which almost doubled from 10 companies at the end of 2023. The top market capitalization faces reflect the industrial structure and investors' growth expectations from time to time. $Hitachi(6501.JP)$Ya $Mitsui(8031.JP)$etc. joined the “10 trillion yen club” for the first time this year, and their faces have become diverse.

Pay attention to the handle
Isetan Mitsukoshi rose significantly, and major domestic securities raised their target stock price to 3800 yen
$Isetan Mitsukoshi Holdings(3099.JP)$It has risen by about 8%, breaking its year-to-date high. It seems that the fact that SMBC Nikko Securities raised the target stock price from 2700 yen to 3800 yen while continuing the investment evaluation “1” on the 4th is viewed as good news. The reason is that the operating profit forecast for the securities was increased from 571 billion yen to 787 billion yen for the fiscal year ending 25/3, and from 582 billion yen to 81.2 billion yen for the fiscal year ending 26/3.

Automobile stocks such as Toyota are weak, and the yen appreciates until 1 dollar = 160 yen 50 yen at 1 time ◇
$Toyota Motor(7203.JP)$Ya $Nissan Motor(7201.JP)$、 $Subaru(7270.JP)$Automobile stocks have been sluggish, etc. In the foreign exchange market, the dollar-yen exchange rate fell to 1 dollar = 160 yen 50 yen in the afternoon. It is swinging in the direction of depreciation of the dollar and appreciation of the yen from around 161 yen 40 yen in the morning to nearly 90 yen. The depreciation of the yen seems to have been a factor encouraging sales against automobile stocks, which are a tailwind for business results.

DISCO sinks from high to low in the morning, and the 56% increase in standalone sales for the April-June fiscal year is also pushed by profit-making sales
$Disco(6146.JP)$It sank low after high in the morning. After the transaction ended on the 4th, the company disclosed preliminary figures of unit sales and shipment values for the first quarter (April-June) of the fiscal year ending 25/3. Sales increased drastically to 685 billion yen, up 56.0% from the same period last year, and landed above the most recent forecast of 62.9 billion yen. Although buying took precedence in the morning using this as a clue, they were aware of the weight of the upper price, and it looked like they were being pushed by sales for profit determination purposes.

Sony EV shares chassis with Honda to compete with features to reduce development costs
$Honda Motor(7267.JP)$and Sony will standardize chassis for electric vehicles (EVs). It will be introduced starting with models sold by both companies in North America in 2026. The chassis is the framework of a car, and development costs of 100 billion yen or more are required for EVs. EV price competition is intensifying around the world, led by Chinese players. In order to increase cost competitiveness, there has been a growing movement to cooperate among companies.