Tokyo Market Summary: Nikkei Average and TOPIX have double highs, search spreads to break out of the “bubble spell”

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Nikkei/TOPIX has double highs, and searches spread to break out of the “bubble spell”
On the Tokyo Stock Exchange on the 4th, TOPIX, which had been late, hit an all-time high for the first time in 34 and a half years. TOPIX's high price update, which is easily affected by value (undervalued) stocks, is accepted as showing an expansion of shopping. On this day, the Nikkei Average also surpassed the highest value based on the closing price for the first time in 3 months, and there are voices saying that they have been freed from the “spell of the bubble” in both name and reality.
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Bank of Japan interest rate hike “September is more likely” Mizuho Research Monma
The Bank of Japan will present a reduction plan for government bond purchases at the monetary policy meeting at the end of this month. At the same time, speculation that interest rates will be raised is smoldering in financial and capital markets. Kazuo Monma, an executive economist at Mizuho Research & Technologies, who is a former Bank of Japan director, assumes that data on wages etc. is insufficient at the time of the July meeting, and expects interest rates to be raised at the next September meeting.
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New EV sales decreased by 40% from January to June, no increase in vehicle models ratio 1.6%
Domestic sales volume of electric vehicles (EVs) (including light vehicles) from 2024/1 to 6, compiled by automobile sales industry groups on the 4th was 29,282 units, down 39% from the same period last year. The ratio of EVs to the total number of new cars remained at 1.6%. In addition to delays in the development of charging infrastructure, car models from domestic manufacturers have not spread, leading to sales.
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Diversification is essential to secure government bond investors to fill the gap at the Bank of Japan - Director Okurizai
Director Oku Tatsuo of the Ministry of Finance, which is responsible for issuing government bonds, etc., expressed recognition that investor diversification is essential for the stable digestion of government bonds based on the fact that the Bank of Japan decided on a reduction policy for government bond purchases. It was stated that even when the period is shortened so that banks can buy easily, it is necessary to pay attention to interest rate risks faced by the country.

Pay attention to the handle
Sumitomo Mitsui FG's PBR recovered 1x for the first time in 10 years and 7 months, continuing with MUFG
$Sumitomo Mitsui Financial Group(8316.JP)$The stock price-net asset ratio (PBR) of (FG) recovered 1 times on the 4th. According to Bloomberg data, this is the first time in about 10 years and 7 months since 2013/12. A recovery of 1 times PBR is in the 3 megabank group $Mitsubishi UFJ Financial Group(8306.JP)$It was the second company after (MUFG).

SBG shares hit a high for the first time in 24 years and are evaluated to enter the AI business
$SoftBank Group(9984.JP)$(SBG) stocks temporarily exceeded 11,100 yen on the 4th, and hit a new high for the first time in 24 years since 2000/2. SBG has indicated a policy centered on business in the artificial intelligence (AI) field, with the English semiconductor design arm, which holds about 90% of the shares, as the core, and buyers gathered from overseas investors who evaluate new business models. During the IT (information technology) bubble a quarter century ago, stock prices were sluggish after the high was updated, but the situation is different from that time.
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Kawasaki Heavy Industries' stock price at 1 time 6.8% suspected of providing money and goods to Yasumi Jitai members
$Kawasaki Heavy Industries(7012.JP)$fell sharply and fell to 6006 yen, which temporarily depreciated 6.89%. On the 3rd, it became known that Kawashige, which receives orders for submarines from the Japan Maritime Self-Defense Force, came up with slush money through fictitious transactions with business partner companies, and there is a suspicion that they were responsible for purchasing goods and food and drink expenses for submarine crew members. Kawashige and the Ministry of Defense made the announcement on the same day. The volume of orders received by Kawashige for the Ministry of Defense has exceeded 500 billion yen, and sales are due to concerns about the impact on future business results.

How to look at the Toyota stock rebound “stock buybacks when holdings are dissolved”
$Toyota Motor(7203.JP)$There was a backlash. It was announced on the 3rd that the results of stock repurchases from 6/1 to 30 were “zero.” On 5/8, Toyota announced that it would carry out a stock repurchase with an upper limit of 1 trillion yen, which is the largest Japanese operating company, but there was no acquisition until the end of June. Since it is a “precautionary” share purchase to prevent deterioration in supply and demand due to the dissolution of shareholding shares in the market, there is no increase in caution against the fact that it has not been carried out at the moment in response to the 1 trillion yen share buyback.