Tokyo Market Summary: Nikkei Average falls for the first time in 3 days, individual investors who are expecting intervention go against each other by buying the largest yen ever - in contrast to overseas players

Top news
Prime Minister's visit to the US, the “Japan-US bond” tested by the market to see if exchange intervention is coming back
Will it be another exchange intervention to buy yen and sell dollars during the Prime Minister's visit to the US? Tensions are growing between the government, the Bank of Japan, and market participants ahead of the announcement of the US Consumer Price Index (CPI) at 9:30 p.m. on the 10th. There is widespread alarm that if the depreciation of the yen progresses beyond 1 dollar = 152 yen, which is viewed as a “line of defense,” it could lead to intervention during Prime Minister Fumio Kishida's visit to the United States continuing two years ago.
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Prime Minister Kishida's visit to the US and the impact of the NY market on Japanese stock fever

Rise in import prices due to depreciation of yen, policy changes if reflected in underlying prices - Bank of Japan Governor
Bank of Japan Governor Ueda Kazuo expressed the view on the 10th that if import prices rise drastically due to the depreciation of the yen and the risk that key prices will rise above 2% increases, it is necessary to consider changes in monetary policy as well. I answered at the House of Representatives Finance and Finance Committee.

Individual investors expecting intervention go against each other by buying the largest yen ever - in contrast to overseas players
As the yen exchange rate approaches 1 dollar = 152 yen for the first time in about 34 years, individual investors are waiting for yen buying intervention by the currency authorities while holding the largest yen buying position ever. The aim is to obtain profits by capturing the situation where yen suddenly rebounds due to intervention, and this figure contrasts with overseas investors who build up yen sales positions in anticipation of further depreciation of the yen.
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Selling US bonds to cover yen buying intervention funds is a drop in the ocean, and yields do not fluctuate

Stock price decline rate growth stocks since the beginning of the year are at the top
The Nikkei Stock Average has maintained a high price range of around 40,000 yen even after the highest price is updated, but there are also stocks that have not survived the overall market price wave. When the stock price decline rate of the Nikkei Average constituent stocks from the beginning of the year was investigated, growth (growth) stocks with high expectations of expanding performance lined up at the top of the rate of decline.

Global steel demand increased 1.7% in '24, boosting India and others
The World Steel Association announced that global steel demand in 2024 is expected to increase 1.7% from the previous year to 1,793 million tons. It is expected to increase 1.2% to 1,815 million tons in '25. It was analyzed that although demand from China, which is the world's largest demand country, continues to be flat, India and the like will push it up. The association stated that “there are signs that 24 and 25 will be on a growth trajectory” in response to the novel coronavirus disaster.

Number of used cars in March fell for the first time in 11 months Daihatsu fraud affected
The number of used car registrations and notifications for March announced by the Japan Automobile Dealers Association (Japan Automobile Dealers Association) and the National Federation of Light Vehicle Associations on the 10th was 779,571 units, down 5% from the same month last year. Negative for the first time in 11 months. The supply of new cars has once again stagnated due to the effects of suspension of shipments due to unauthorized certification by Daihatsu Motor. The fact that replacements have decreased and the number of trade-in cars flowing into the used car market has decreased resonated.

Notable stocks
Sakura Net, Sakura KCS, etc. skyrocketed, and speculation about stock appreciation blossomed due to the huge investment of Microsoft in the US ◇
$SAKURA Internet(3778.JP)$The rapid increase continued, and there was a scene where it ran up to 5450 yen, which was 12% higher, $SAKURA KCS(4761.JP)$It also made a big comeback for the first time in 6 days, and this played a sharp rise where people were bought up to the upper limit of the price range limit of 1699 yen. Both are focusing on the data center field, and business opportunities are expected to expand against the backdrop of rapid growth in the generative AI market.

Rapid rise in electricity stocks, Microsoft invests huge money in Japan - expectations for increased electricity consumption
paddy $Microsoft(MSFT.US)$Since it was announced that large-scale investments would be made in Japan for the purpose of strengthening cloud computing and artificial intelligence (AI) infrastructure, electricity stocks grew rapidly across the board due to purchases that anticipated future increases in electricity consumption. $Tokyo Electric Power(9501.JP)$The high price since 2011/3 was updated to 1099 yen, which is 5.7% higher than the previous day. $Hokkaido Electric Power(9509.JP)$is 9.6% higher, the highest price since February 16, $Kyushu Electric Power(9508.JP)$The TOPIX Electricity/Gas Industry Index was also 5.4% higher, and the TOPIX Electricity/Gas Industry Index was at the top of the rate of increase for 33 industries on the Tokyo Stock Exchange.

7 & iHD begins studies to realize an IPO for the superstore business
$Seven & i Holdings(3382.JP)$It was announced on the 10th that studies aimed at realistically realizing an initial public offering (IPO) of the superstore (SST) business at the fastest timing will begin.

Renesas is equipped with English arm standards at 20% cheaper arithmetic semiconductors
$Renesas Electronics(6723.JP)$It was announced on the 9th that mass production of computational semiconductors at lower prices than before has begun. It is a semiconductor called a microcomputer, and the core of the brain part is English $Arm Holdings(ARM.US)$The standard of is used. Instead of reducing the operating frequency showing performance by 35%, the sales price was lowered by about 20% compared to conventional products. We anticipate inquiries for small home appliances and industrial equipment.

SoftBank G has a strong presence in Japan-US cooperation on AI technology development in conjunction with searching for lower prices and arm's stock price adjustments
$SoftBank Group(9984.JP)$They are being forced to search for lower prices amidst a general soft situation. In the US stock market the day before, the NASDAQ comprehensive stock price index, which has a high high-tech stock ratio, continued to grow for 3 days and closed, and the direction of the wind is not bad for the company, which is active in investing in US high-tech stocks. However, English semiconductor design $Arm Holdings(ARM.US)$The fact that the stock price of has plateaued here and suggests an adjustment phase seems to have had an impact on the stock price of SoftBank G, which is the parent company.

A whistleblower over the safety of the IHI - drastically reduced Boeing 787 is reported
$IHI(7013.JP)$is drastically cheaper. It seems that they are displeased that it was reported that the US Federal Aviation Administration (FAA) is investigating whistleblower regarding the safety of the US Boeing mid-size aircraft “787 Dreamliner.”