Tokyo Market Summary: Continued growth in the Nikkei Average, Bank of Japan's government bond purchases reduced, possibility centered on 10-year bonds - data suggests

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Bank of Japan's government bond purchase reduction, possibility centered on 10-year bonds - data suggests
The government bond purchase reduction, which the Bank of Japan plans to announce details on the 31st, will be centered around the zone with a remaining period of 7 to 10 years. Government bonds held by the Bank of Japan are concentrated with a remaining period of 10 years or less, and account for about two-thirds of the balance issued. The Bank of Japan holding ratio of government bonds over 10 years is quite small at 26%.

OSigns of an end to a historic depreciation of the yen in the option market take into account policy changes between Japan and the US
There is a growing view that the depreciation of the dollar and appreciation of the yen will progress over the long term in the currency options market. The turning point of monetary policy between Japan and the US is approaching, and there is a possibility that the historic depreciation of the yen will reverse. Risk reversal, which indicates the difference in demand between the right to buy a dollar (call) and the right to sell a dollar (put) after 1 year in the options market, temporarily fell to a level of minus 0.4 units last week for the first time in 3 months. This indicates that demand for dollar sales, which was wary of yen appreciation, is relatively strong.

Expect appropriate policy management from the Bank of Japan and keep a close eye on the employment situation = Chief Cabinet Secretary Hayashi
Chief Cabinet Secretary Hayashi Yoshimasa stated at the press conference on the 30th that specific methods of monetary policy will be left to the Bank of Japan with regard to the Bank of Japan's monetary policy meeting to be held from this day, and “I expect that we will continue to cooperate closely with the government and carry out appropriate monetary policy management for the sustainable and stable realization of the 2% price stability target based on the economy, prices, and financial conditions.” Regarding the fact that the ratio of effective job offers nationwide for June, which was announced on this day, dropped 0.01 points from the previous month, it was stated that it is necessary to continue to keep a close eye on the situation, assuming that cautious movements are also seen in personnel increases and job offers due to circumstances such as rising raw material prices, resource and energy prices, and insufficient price transfer.
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The ratio of effective job offers in June fell 1.23 times and the unemployment rate was 2.5%

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Toyota leads for 5 consecutive years = Group Global Sales - 1st half of '24
$Toyota Motor(7203.JP)$Group global sales volume (including Daihatsu Motor and Hino Motors) for the first half of 2024 (January-June), which was announced on the 30th, decreased by 4.7% compared to the same period last year, but it became the leader for 5 consecutive years with the 5.16 million unit. It greatly surpassed the 4.34 million range of the German Volkswagen (VW) Group. There were effects of certification fraud by Daihatsu Motor, but VW also declined slightly from the same period last year, protecting the top position.　
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Shiono Yoshi's net profit fell 28% from April to June due to a lump-sum payment reaction for ADHD drugs
$Shionogi(4507.JP)$In the consolidated financial results (international accounting standards) for the fiscal year ending 2024/4/6 announced on the 29th, net profit was 30.6 billion yen, down 28% from the same period last year. Rights such as the sale of attention-deficit/hyperactivity disorder (ADHD) treatment drugs $Takeda Pharmaceutical(4502.JP)$There was a reaction of the lump-sum payment received in the same period last year due to the transfer.

Rakuten G shares fall rate for the first time in two and a half months, bank subsidiaries too - financial business restructuring delayed
$Rakuten Group(4755.JP)$Stocks fell in the Tokyo market on the 30th, temporarily falling 6.7% from the previous day to 843.2 yen, and an intraday rate of decline for the first time in about two and a half months since 5/15. The company yesterday $Rakuten Bank(5838.JP)$It was announced that the fintech business restructuring, which is proceeding with discussions, will take effect later than originally planned.

Distributor: Jiji Press, Bloomberg, Reuters, Nihon Keizai Shimbun