Tokyo Market Summary: Nikkei continues to update all-time highs, returning to the 'Japan Advantage'.

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BOJ reduces government bond purchases, seeks opinions from institutional investors - 2nd day of the Practical Meeting
On the afternoon of the 10th, the Bank of Japan held a meeting with participants in the bond market for the second consecutive day to hear opinions from institutional investors on reducing the Bank of Japan's purchases of long-term government bonds. According to interviews with multiple sources, at the meeting with banks and securities firms on the 9th, opinions urging the Bank of Japan to actively reduce purchases, mainly from major banks, were expressed. A Bloomberg survey of economists conducted after the June decision meeting suggested a view that the reduction should first be around 5 trillion yen, gradually shrinking every six months, and compressing to around 3 trillion yen after two years. Governor Kuroda expressed the view at a press conference after the meeting that the reduction should be of an appropriate scale.

The Nikkei Average continues to rise, with continued buying in financial stocks and no hesitation in selling ETFs, possibly returning to a "dominant Japan" trend.
$Tokio Marine Holdings (8766.JP)$や $Mitsubishi UFJ Financial Group (8306.JP)$、 $Nomura Holdings (8604.JP)$Rising financial stocks stood out, etc. $Sony Group (6758.JP)$Continued buying from overseas investors is seen in major stocks with large market capitalization, etc. Overseas players are coming in to buy almost ignoring the selling associated with the distribution of listed exchange-traded funds (ETFs), supported by factors such as the weakening of the yen and the re-emergence of the view of "Japan's advantage" in terms of performance.

Hot stocks
AI medical company in the USA with SoftBank Group investment, US securities firms bullish with coverage initiation
On the 9th, a major US securities company $SoftBank Group (9984.JP)$The US medical artificial intelligence (ai) company $Tempus AI (TEM.US)$began coverage with a bullish investment decision. The company's clinical and molecular data utilizing AI are expected to lead to more powerful diagnostic and testing kits.

Mitsubishi Heavy Industries continues to sharply decline, fueled by selling following reports on the Kashikoi Bank in sales issues related to Kawasaki Heavy Industries ◇
$Mitsubishi Heavy Industries (7011.JP)$Following a sharp decline. The company had risen for 11 consecutive days until July 8, two business days ago, but on the previous day, amid a temporary increase in the Nikkei Stock Average to over 900 yen, the company's stock was pushed down by profit-taking purposes to secure profits at the moment. On the 10th, amidst lackluster profit-taking selling in the morning, the Nikkei Shimbun electronic edition reported on the morning of the same day that at a joint meeting of the Liberal Democratic Party, the Ministry of Defense explained the confirmation of inappropriate use of specific secrets, improper receipt of diving allowances by the Maritime Self-Defense Force, and power harassment issues, and also reported that companies related to Kawasaki Heavy Industries, Mitsubishi Heavy Industries, subcontractors, and others are subjects of investigation in relation to the issue of Kawasaki's provision of money to crew members of the Maritime Self-Defense Force's submarines.

Mitsubishi Electric rose for the 7th day, signing a memorandum with a US company on defense equipment for Japan and the USA.
$Mitsubishi Electric (6503.JP)$It continued to rise on the 7th day. On the 10th, Northrop Grumman Corporation <NOC> announced that it has agreed with Mitsubishi Electric to cooperate on providing defense equipment in the Japanese and US markets, signing a memorandum (MOU). It seems that there was buying interest based on this development. Mitsubishi Electric and Northrop Grumman are going to consider cooperative arrangements and business schemes to build a relationship for providing electronic warfare systems, radars, communication systems, and more.

Dai-ichi Life Holdings reached a record high since listing, and T&D also hit a high not seen in 16 years, with rising long-term interest rates as a tailwind.
$Dai-ichi Life Holdings (8750.JP)$Continued to rise, setting a new all-time high since listing. $T&D Holdings (8795.JP)$Also showing an upward trend, hitting a year-to-date high, the market value has reached a high level not seen since around August 2008 before the Lehman Shock. Amid growing views that former President Trump of the Republican Party is in a favorable position for the US presidential election, there is also a perspective that Trump's large fiscal stimulus could contribute to higher interest rates, inducing buying in financial stocks. Meanwhile, domestic interest rates are on the rise, but there is a noticeable increase in the ultra-long-term interest rates, such as the 20-year bond yield, compared to the 10-year bond yield.

Sony Group continued to rise, with Mizuho Securities raising the target stock price from 300 yen to 1100 yen.
$Sony Group (6758.JP)$Also continued to rise. Mizuho Securities maintained its 'buy' investment rating and raised the target stock price from 300 yen to 1100 yen, which seems to be well received by the market.