Nikkei Average starts 476 yen higher, BOJ's full normalization is expected after the fiscal year 2025, this autumn, there will also be a 'slight jab' interest rate hike - Mr. Sakurai

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Four reasons why the historic interest rate hike cannot save the yen, echoing the low-altitude flight of interest rates and volatility.
Despite the Bank of Japan's first interest rate hike in 17 years, the exchange rate of the yen has not rebounded as much as government and Bank of Japan officials who want to reduce the risk of imported inflation had hoped. Rather, many strategists expect a continued trend of yen depreciation in the near term, citing four reasons.

Yen exchange rate, 140-150 yen by year-end - Mr. Kadota of State Street Bank
As of the beginning of 2024, the depreciation of the yen has been accelerating. Currently, it is hovering around 151 yen to the dollar, marking a low level not seen in about 34 years. Regarding the outlook for the yen exchange rate for the year, we interviewed Kazushige Kaita, Director of the Financial Markets Department at State Street Bank Tokyo Branch.

The Bank of Japan's full-scale normalization is expected to be after the fiscal year 2025, with a possible rate hike this autumn to the extent of "a jab," according to Mr. Sakurai.
Mr. Sakurai, a former Bank of Japan Policy Board member, mentioned that if the sustainability of positive changes in the Japanese economy is confirmed, the Bank of Japan may conduct an additional rate hike to 0.25% as early as October. He also indicated that full-scale normalization is expected to be after 2025, and depending on economic and price developments, an acceleration in the pace of rate hikes could be anticipated.

International settlements using digital currency - Immediate payments experimented by central banks of Japan, the U.S., Europe, and China
Central banks and private banks from Japan, the U.S., Europe, and others are embarking on experimental verification of international settlements using digital currency. The aim is to enable low-cost immediate settlement of trade payments. Based on the results of the experiments, there is a potential to overhaul the current cross-border settlement mechanisms if settlements using central bank digital currency (CBDC) become practical in the future.

Rakuten Group's dollar bonds, with an issuance size of 300 billion yen, have been determined - Increased demand due to high yield
$Rakuten Group (4755.JP)$Decided on the issuance terms for dollar-denominated corporate bonds in the overseas market on the 3rd. According to sources familiar with the matter, due to strong investor demand, the issuance size was considered to be increased from the initially planned 1.250 billion dollars (approximately 303 billion yen) to 2 billion dollars.

Laser Tech, Toshiba Electronics, and other semiconductor manufacturing equipment-related companies are performing well, driven by the rise in the SOX index and the tailwind of a weaker yen.
$Lasertec (6920.JP)$ 、 $Tokyo Electron (8035.JP)$ 、 $Disco (6146.JP)$Semiconductor manufacturing equipment and related industries are generally showing strength and are trending higher. Led by laser technology, they have been dominating the top three trading volumes in the main board market for several consecutive days, indicating high market attention.

Citigroup's business in yen interest rates for regional financial institutions is doing well, expanding at three times the expected pace.
USA $Citigroup (C.US)$Citigroup Securities, a subsidiary, has been expanding its yen interest rate business with regional financial institutions. Despite starting the year with a focus on strengthening in anticipation of the Bank of Japan's negative interest rate policy being lifted, the expansion is currently three times faster than expected.

Kao Corp - buying interest. Oasis Management reportedly requested a focus on cosmetics from the company.
$Kao (4452.JP)$Buying interest in Kao Corp. Reuters reported on the 4th that investment fund Oasis Management requested the company to focus on international growth of cosmetics and skincare brands.