Tokyo Market Summary: Nikkei Average 485 yen depreciation continues to ease even after negative interest rates are lifted; discussions over exit periods are important - Bank of Japan meeting

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Summary of the Bank of Japan's December Decision Meeting “It's Not Too Late to Make a Decision by Looking at the Spring Battle”
On the 26th, the Bank of Japan announced the summary of the proceedings of the monetary policy meeting on 2023/12/18 to 19. At the same meeting, the current state of monetary policy was maintained, and the cancellation of the negative interest rate policy was foregone. Regarding determining the virtuous cycle of wages and prices, which the Bank of Japan emphasizes in terms of price stability, multiple members of the committee stated that “it is not too late to judge by looking at trends in spring labor-management negotiations (spring battles)” ahead of the centralized response date in mid-March.
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Continued easing even after negative interest rates are lifted, discussions on exit timing are important - Bank of Japan meeting in December last year

The government and the Tokyo Metropolitan Government sold shares to be listed on Tokyo Metro in fiscal year 24, and used as financial resources for reconstruction
The government and the Tokyo Metropolitan Government will begin selling Tokyo Metro (Tokyo Metro) shares during the 2024 fiscal year. We aim to be listed on the stock market after summer. Both parties will eventually sell 50% of the shares they hold 100%. Proceeds from sales on the government side will be used for reconstruction funds from the Great East Japan Earthquake. The sale period will be determined based on the environment where stock prices continue to rise in the Tokyo Stock Market.

The total purchase price of the new NISA and JT for the top individual stock popularity reached a record high
Individual stock investments using the new Small Investment Tax Exemption System (NISA) are expanding. The total purchase amount via the five internet securities companies exceeded 460 billion yen in about 2 weeks until the 19th. It has already surpassed the highest single month record (168.6 billion yen, 20/3) under the old system. Stocks with high dividend yield are lined up in the top popular stocks, and what is the top $Japan Tobacco(2914.JP)$ It became (JT).

Daihatsu 3 models cancel model designation Ministry of Land, Transport and Tourism
Regarding the quality fraud issue at Daihatsu Motor, the Ministry of Land, Infrastructure, Transport and Tourism issued an administrative sanction on the 26th to cancel the certification “type designation” necessary for production in 3 models where there was particularly malicious fraud, such as the light truck “Grand Max.” Cancellation of type specification $Hino Motors(7205.JP)$、 $Toyota Industries(6201.JP)$This is the third example following.

Equipped with Denso, 48,000 units recall fuel pump malfunction, over 30 models from 6 companies
Major auto parts company $Denso(6902.JP)$Regarding pump defects, 6 companies such as SUBARU (Subaru) reported recalls (collection/free repairs) of a total of about 481,000 units (manufactured from 2017/6/23 to 12/23), such as ordinary passenger cars “XVs” equipped with Denso fuel pumps, to the Ministry of Land, Infrastructure, Transport and Tourism on the 26th. The target exceeded 30 models, and the total number of recalls of mass-produced cars equipped with Denso fuel pumps was approximately 4.3 million units.

Sompo announces resignation of CEO Sakurada “not involved in supervision or execution”
$Sompo Holdings(8630.JP)$It was announced on the 26th that Chairman Sakurada Kengo and Group Chief Executive Officer (CEO, 67) will retire at the end of March. He did not work as a special advisor and completely withdrew from management. The distorted business relationship between Sompo Japan Insurance, which is under its umbrella, and Big Motor, which had repeatedly made fraudulent claims for auto insurance claims, developed into a renewal of the management team, including holding companies.

Corporate service prices rise 2% in 23 years to the highest level in 23 - Bank of Japan
The 2023 corporate service price index (15 year average = 100) announced by the Bank of Japan on the 26th was 109.1, up 2.0% from the previous year. In response to the rise in lodging and services due to a recovery in tourism demand, etc., the growth rate is at a high level for the first time in 32 years since 1991 (3.0% increase), excluding the effects of the consumption tax hike.

Notable stocks
Tokyo Electron falls profit-making sales to semiconductor manufacturing equipment due to Intel financial results
$Tokyo Electron(8035.JP)$has declined. Major US semiconductor company $Intel(INTC.US)$Since there was not even a sales forecast for the fiscal year ending 2024/1-3 announced on the 25th, it seems that sales for profit determination purposes are appearing on stocks related to semiconductor manufacturing equipment, which were currently strong. $Screen Holdings(7735.JP)$Ya $Advantest(6857.JP)$It's also cheap. It provides semiconductor package substrates to Intel $Ibiden(4062.JP)$There was a scene where the rate of decline exceeded 5%.

The Rakuten Group continued to grow for 3 days, and concerns about capital increases eased with the issuance of senior dollar-denominated bonds maturing in 27
$Rakuten Group(4755.JP)$It has continued to grow for 3 days. On the 26th, the company issued US dollar-denominated senior bonds maturing 2027 in overseas markets, and announced a tender offer for US dollar-denominated senior bonds maturing 24 years and the purchase of yen-denominated senior bonds whose redemption period will arrive after 24. The company is preparing to redeem huge amounts of corporate bonds, but in response to the announcement of the issuance of corporate bonds this time, acceptance that concerns about public offering capital increases for the purpose of allocating funds have receded spread, and it seems to have been a factor inviting purchases.

Mitsubishi Corporation - 4 days in a row received a notice of objection regarding suspected violation of European competition law by a subsidiary
$Mitsubishi(8058.JP)$It continued to fall for 4 days. The company announced on the 26th that its wholly owned subsidiary Cermaq Group received an objection notice from the European Commission on 2024/1/25 regarding suspected violation of European competition law in the Norwegian Atlantic salmon farming/sales business, and the company also received an objection notice on the same day as a parent company.

Nintendo will launch a new game console by the end of the year and adopt an 8-inch LCD - English research company
The English research company Omdia announced on the 26th $Nintendo(7974.JP)$A new game console will be released in 2024, and it was revealed that shipments of small to medium game console displays will increase by about 14.6 million discs along with that.