The Nikkei average started 65 yen higher, with buying in semiconductor-related sectors as American interest rates stabilized.

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Manufacturing profits have reversed non-manufacturing for the first time in 15 years due to the weak yen and production recovery.
Manufacturing net profit reversed non-manufacturing for the first time in 15 years. For the April to September 2023 period, it increased by 12% from the same period last year to 11 trillion 642.5 billion yen, surpassing non-manufacturing (an 8% increase to 11 trillion 565.2 billion yen). This marks the first reversal in the same period since 2008.

Warning about the risk of an increase in interest payments on government bonds due to the flexibility of the YCC policy submitted by the Fiscal System Council.
The Fiscal System Council (an advisory body to the Minister of Finance) has submitted recommendations to Minister Toshio Suzuki for the formulation of the budget for fiscal year 2024. They are sounding the alarm to prepare for the risk of a significant increase in interest payments on government bonds against the backdrop of rising interest rates due to the relaxation of the Bank of Japan's Yield Curve Control (YCC) policy.

The yen is in the 148 yen range against the dollar, reaching the highest level since early October under the leadership of a weaker dollar.
In the morning of the 21st, the yen exchange rate in the Tokyo foreign exchange market is hovering around the high level of 148 yen per dollar, the highest since early October on overseas time. The yen strengthened due to a weaker dollar caused by the decline in long-term interest rates in the United States and the adjustment of short yen positions.

Mitsui Sumitomo Bank has been rising for 4 consecutive days. It was reported by Nikkei on the 4th that an investment company affiliated with the bank has invested over 500 billion yen in lease aircrafts due to increased demand, acquiring 60 aircrafts.
$Sumitomo Mitsui Financial Group (8316.JP)$Omron is showing a buy order. It was reported by Nikkei on the 21st that the company has developed a new product of high-speed inspection equipment for semiconductors for AI manufacturing, completing inspection, which used to take tens of minutes, in about 30 seconds. The new product is compatible with chiplets, where chips are combined like blocks, and stacking chips vertically.

FG has been rising for 4 consecutive days. The morning edition of the Nikkei on the 21st reported that SMBC Aviation Capital, the second-largest aircraft leasing company in the world, which is invested by FG, is acquiring 60 medium-sized passenger aircrafts.
$OMRON (6645.JP)$Omron is showing a buy order. The morning edition of the Nikkei on the 21st reported that the company has developed a new product of X-ray inspection equipment for semiconductors. According to the article, the new product can handle chiplets, where chips are combined like blocks, and stacking chips vertically. It can complete inspections that used to take tens of minutes in about 30 seconds.

KDDI - Stalemate. Subsidiary Soracom reapplies for listing on the Tokyo Stock Exchange.
$KDDI (9433.JP)$Stalemate. The company announced on the 20th that its subsidiary Soracom had reapplied for listing on the Tokyo Stock Exchange on the same day. Soracom had announced the withdrawal of its listing application on February 3, but decided to resume the listing process based on the economic environment and market trends.

Komatsu acquires US battery company to electrify mining machinery.
$Komatsu (6301.JP)$announced on the 20th that it will acquire American Battery Solutions (ABS), a US battery manufacturer based in Michigan. The company will acquire all of ABS's shares, and the acquisition amount has not been disclosed. Komatsu will continue to develop batteries for electrifying mining machinery and construction machinery. The batteries will also be sold to truck and bus manufacturers.

-moomoo News by Evelyn
Source: Nikkei newspaper, Traders Web, Bloomberg.