Tokyo Market Summary: Nikkei average fell below 0.04 million yen, additional rate hike by Bank of Japan could be as early as October, service prices weakening - Professor Watanabe at University of Tokyo

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Maintaining corporate inflation expectations above 2% supports the likelihood of the Bank of Japan achieving its price target.
As part of the Bank of Japan's efforts to achieve the 2% price stability target, one important indicator, corporate inflation expectations, has been consistently positive. While carefully examining important data such as service prices and trends in wage increases for small and medium-sized enterprises, it seems that the focus will be on determining the timing of the next interest rate hike. Daiwa Securities' Chief Market Economist Mari Iwashita reported that the March Tankan survey confirmed robust corporate earnings and price pass-through movements, maintaining the mid-term price outlook above 2%. She noted, "It will take some more time for the impact of high wage increases to be reflected in service prices and others," and sees the possibility of the Bank of Japan's additional interest rate hike at the meetings in September or October.
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Bank of Japan's additional interest rate hike may occur at the earliest in October, with weaknesses seen in service prices - Professor Watanabe from the University of Tokyo.
Professor Tsutomu Watanabe, a specialist in wage and price research and a former Bank of Japan economist, stated that significant factors indicate a slowdown in service prices if special factors are excluded. He expressed the view that the Bank of Japan may move towards the next rate hike as early as October, as discussed in an interview on March 29th.
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The Bank of Japan's government bond purchases totaled ¥5,928.9 billion in March, continuing purchases even after ending Yield Curve Control (YCC).

Nikkei average temporarily down 600 yen, prompting Denso to 'realize profits at the beginning of the term'
The first day of the Tokyo stock market in the new fiscal year started with a sharp drop in the Nikkei stock average. The decline exceeded 600 yen at one point and temporarily fell below 4 billion yen, the first time in about 2 weeks during trading hours. At the root of the selling is the announcement to sell all held stocks as policy holding stocks made last weekend $Toyota Industries (6201.JP)$It was announced that all the stocks were sold. $Denso (6902.JP)$Annually, in the first week of April, it is easy for domestic financial institutions to sell profit-making stocks held as policy holdings, known as 'realizing profits at the beginning of the term'. Denso's announcement effectively nudged domestic investors who were waiting for the timing to secure profits.
情報発信せよ、日本企業　新年度の株式市場
株式相場が2024年度入りした。日本は投資される国であり続けられるだろうか。決めてのひとつは企業の情報発信の力だ。東京証券取引所が主導するPBR（株価純資産倍率）改革やバフェット氏来日、さらには中国からの資金シフト。様々な要因が重なり、日本株への注目は昨年来高まってきたが、「世界の投資家は日本人が考えるほど、まだ日本企業のことをよく知らない」。今後は企業が自力でマネーを引き寄せる努力が要る。日本市場を見続けてきた運用者のメッセージは、期待ともどかしさが入り交じっていた。
新年度、海外勢による最大級の日本株買いも

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Fanuc temporarily rose 5% in stock price due to improved sentiment in China.
Stocks related to capital investment are high. $Fanuc (6954.JP)$It reached ¥4,420, a temporary increase of ¥235 (5.61%) from the previous weekend. The manufacturing purchasing managers' index (PMI) for March 2024, announced by the Chinese National Bureau of Statistics on March 31st, was 50.8. This was 1.7 points higher than the previous month, surpassing the key threshold of 50, indicating positive growth for the first time in six months. Concerns about a slowdown in the Chinese economy have slightly eased. $Hitachi Construction Machinery (6305.JP)$Ya. $YASKAWA Electric (6506.JP)$、 $Casio Computer (6952.JP)$There was buying interest in stocks classified as related to China.
$Toyota Industries (6201.JP)$With a significant 10% decline, Toyoda Looms continued to fall for the third day. Denso announced that it will sell all 29,647,895 shares of Toyoda Looms it holds (9.10% of the total shares issued) over a maximum period of two and a half years after the close of trading on March 29, in response to concerns about deteriorating supply and demand dynamics. It is also stated that business relations with Toyoda Looms will continue and be strengthened after the completion of the sale.