The driving force behind the “Japanese stock market” market soared to a maximum of nearly 60% in 4 months!
After the Bank of Japan lifted negative interest rates in March, a US investment and insurance company led by famous investor Warren Buffett $Berkshire Hathaway-B (BRK.B.US)$is preparing to issue corporate bonds denominated in yen, and it is expected to become the first major non-financial overseas bond issuer of yen bonds. According to the Nikkei Shimbun, when Mr. Buffett visited Japan for the second time in 23/4/23,Consider purchasing more Japanese stocks in addition to trading company stocksI revealed that I was doing it. It also led to Japanese stock buybacks by other foreign investors, and it also became a driving force for the Nikkei Stock Average to hit a post-bubble high.
Goldman Sachs Asset Management (GSAM)has proceeded with drastic adjustments to its investment portfolio, withdrew funds from strong technology stocks,Switch to investing in energy stocks and Japanese stocks that receive more attractive evaluationsDoing it. Currently, the returns of the US stock “Magnificent Seven” have begun to diverge, $NVIDIA (NVDA.US)$Whereas it has risen 72% year-to-date, $Apple (AAPL.US)$with $Tesla (TSLA.US)$The results have disappointed expectations. Apple stocks have struggled due to sluggish iPhone demand, and Tesla stocks have fallen about 30% since the beginning of the year due to concerns about a slowdown in electric vehicle (EV) demand and intensifying competition.
While tech stocks are highly valued, according to Alexandra Wilson Elizondo, Co-Chief Investment Officer (CIO) of Goldman Sachs's multi-asset solutions division, “Stocks continue to be bullish, and tech stocks are currentlyThere is a possibility that buyback pressure will be appliedSince there is, the valuation is currently low,Choose energy stocks and Japanese stocks with a high futureIt says, “I'm doing it.” GSAM also overweights Japanese stocks due to corporate reforms, improvements in business confidence, and a sense of relative undervaluation. Wilson Elizondo said, “Japan offers desirable opportunities in both the business cycle and structural stories.”
This year, the Nikkei Stock Average hit a new high for the first time in 34 years. Furthermore, it was the first time in history that it entered the 40,000 yen range.If you look at the top 10 Japanese stock appreciation rates, the five major trading companies, automobiles, semiconductors, etc. are driving the overall market priceIt has become.
Semiconductor Conduit Co., Ltd.It led the Japanese stock market from the beginning of the year, and became the driving force behind the Nikkei Stock Average exceeding 40,000 yen. Looking at the rate of increase from this year to 4/11, $Disco (6146.JP)$（59%nearby), $Tokyo Electron (8035.JP)$（54%The rise in semiconductor-related stocks such as) is conspicuous. One reason is that prospects for business expansion have strengthened against the backdrop of growing demand related to artificial intelligence (AI) and semiconductor inventory adjustments, etc. Also, $NVIDIA (NVDA.US)$Trends in East Elec, etc.Price movement left and rightThere are many things to do.
Katayama Tomohiro, senior analyst at Sumitomo Mitsui Trust Asset Management, said, “Unlike the US where NVIDIA and tech giants are located, domestically it is related to generative AIIs it easy to get money into semiconductor equipment stocks” he pointed out.
Berkshire is a major shareholder of Japan's five largest trading companies. Berkshire is planning to issue new yen bonds, once again stimulating the rise of the five major trading companies. On the Tokyo Stock Exchange on the 9th $Mitsui (8031.JP)$The stock price of was 3.6% at one point, $Mitsubishi (8058.JP)$is the same as 3.1%, $Sumitomo (8053.JP)$They rose 2.8%, respectively, and hit record highs. If you compare the rate of increase in the stocks of the five major trading companies,Mitsubishi Corporation stands out for its rise, with a rate of increase close to 60% since the beginning of the yearSo, it is the top 1 rate of increase. The business base for machinery, food, chemical products, etc. is strong, with resources such as coking coal at the top. Mitsubishi Corporation adopted a “progressive dividend system” in 2016 that guarantees a minimum level of dividends regardless of performance fluctuations. On February 6, '24Company stock buybacks with an upper limit of 500 billion yenExpress it. Jeffries Securities Analyst said”Monster-class stock buybacksIt was evaluated as”, and the target stock price was raised. The total return amount for the current fiscal year, which includes previously announced stock buybacks and dividends, will be a record high of approximately 890 billion yen.
According to the Nikkei Shimbun, analyst Narita Yasuhiro of Nomura Securities shows the view that “there is a large fluctuation in performance due to effects due to fluctuations in resource prices, etc., but efforts to lower capital costs have been strengthened by adopting progressive dividend policies, etc., and it is a stock that can be held with peace of mind.” On top of that, “From now on, the focus will be on whether management that improves return on equity (ROE) can be continued. It is also important not to use surplus cash only for shareholder returns, but also to continue directing it to growth investments,” he pointed out.
Auto stocks are all high, with the depreciation of the yen and the appreciation of the dollar in the exchange rate as a tailwind, and the biggest $Toyota Motor (7203.JP)$Is the beginning of the year46%Close increase. Stock appreciation also spread to auto parts companies (suppliers). $Denso (6902.JP)$Since the beginning of this year38%It's rising.
$SoftBank Group (9984.JP)$The final profit and loss surplus was 950 billion yen in the consolidated financial results (international accounting standards) for the fiscal year ending 2023/10-12 announced on 2/8.Surplus for the first time in 5 quartersIt becomes. According to the Nikkei Shimbun, against the backdrop of global stock appreciationInvestee stock prices are strongThat was a contribution. Equivalent to 1.1 trillion yenUS telecommunications giant T-Mobile acquired US shares free of charge in 23/12What I did was also a tailwind. Also,“tiger cub” $Arm Holdings (ARM.US)$is doing wellThat was one of the reasons why the SoftBank Group's stock price was high.
$Tokio Marine Holdings (8766.JP)$Since the beginning of this year36%It has skyrocketed recently, and according to the Nikkei Shimbun, in addition to proceeding with the sale of policy holdings, it also seems to be inviting speculation about strengthening shareholder returns, such as company stock buybacks, etc., and it seems that it is being viewed as buying material. As the Tokyo Stock Exchange requests management that is conscious of improving capital efficiency from companies,There are many voices in the market paying attention to the sale of policy holdings as one of this year's investment themes。
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Source: Nihon Keizai Shimbun, Bloomberg, Moomoo
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