The Nikkei average started 416 yen higher, with a real GDP reduction of 2.1% year-on-year in the July to September period surpassing market expectations.

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The real GDP for July-September contracted at an annual rate of 2.1%, exceeding market expectations.
The preliminary real GDP for the July-September quarter fell by 2.1% compared to the previous year. The decline was larger than the market expectation of 0.4% decline. Facility investment was weak, and personal consumption was also sluggish. External demand, which led the growth in the previous period, became a factor contributing to the decline in growth rate.

Interest rates rose, 5 major banks reported record profits in the final quarter of April-September, with assets reaching 1,000 trillion yen, a 60% increase over 10 years. The spread improvement effect has been amplified.
The financial results for the April to September 2023 period of the five major bank groups were all released on the 14th. The total consolidated net profit increased by 56% compared to the same period last year, reaching a record high since the formation of the three megabanks in 2005 at 1,996 billion yen. The sluggish lending interest margin, due to the ultra-low interest rate environment, has improved.

Regional banks, with bond unrealized losses reaching 2.8 trillion yen, had 7 banks report operating losses due to loss processing.
Rising interest rates have caused unrealized losses on domestic and foreign bonds, investment trusts, etc., held by local banks nationwide to increase. As of the end of September 2023, unrealized losses for the 97 regional banks reached approximately 2.8 trillion yen, a 70% increase from the end of June.

Retail sector with a private brand (PB) ratio of 17%, the highest level. Aeon and Seven introduce new products.
Major retailers are expanding their lineup of private brand (PB) products in essentials like food. Company A is renewing half of its food PB lineup, while Company B is doubling its low-priced PB products. $AEON (8267.JP)$Refreshing half of their food PB products, $Seven & i Holdings (3382.JP)$Doubling the low-price range of their PB products.

Mitsui Sumitomo rises for the 4th day, raising its full-year net profit forecast. The first half was on par with the same period last year.
$Sumitomo Mitsui Financial Group (8316.JP)$Rises for the 4th consecutive day. The company announced on the 14th that it would raise its consolidated net profit forecast for the full year ending March 24.3 from the previous 820 billion yen to 920 billion yen (an increase of 14.2% from the previous year). The market consensus is 860.7 billion yen.

Mitsubishi UFJ rises for the 5th consecutive day with a 4.0 times increase in final profit for the first half, contributed by improvements in bond-related gains and losses.
$Mitsubishi UFJ Financial Group (8306.JP)$Rises for the 5th consecutive day. The company announced on the 14th that its consolidated net profit for the first half of March 24.3 (April-September) was 927.3 billion yen (a 4.0 times increase from the same period last year). The market consensus is 857.1 billion yen.

SMC shows buying indications, setting a share buyback with a limit of 0.45 million shares and 35 billion yen, accounting for 0.7%.
$SMC (6273.JP)$Shows buying indications. The company announced on the 14th that it would set up a self-share acquisition framework with a limit of 0.45 million shares and 35 billion yen.