Tokyo Market Summary: Nikkei Average Continued Growth Trend If Prices Rise to 2%, Interest Rates Will Be Raised and Targets Achieved Over FY25 - Bank of Japan Governor

Top news
If the underlying price rises to 2%, interest rates will be raised, and the target will be achieved over fiscal year 25 - Bank of Japan Governor
On the 23rd, Bank of Japan Governor Ueda once again expressed the idea that if the underlying inflation rate that the Bank of Japan emphasizes rises in line with the outlook, the degree of monetary easing will be adjusted by raising short-term interest rates. The governor explained that the underlying inflation rate is currently below 2%, which is the Bank of Japan's target, and if it rises to 2% in line with the Bank of Japan's outlook, “the degree of monetary easing will be adjusted.” In that case, he said, “Short-term interest rates will be raised.”

Pimco: The Bank of Japan assumes that interest rates will be raised twice by the end of the year, and government bond purchases will be reduced from around summer
The US management company Pacific Investment Management (Pimco), which has total assets of 1.86 trillion dollars (about 288 trillion yen), assumes that the Bank of Japan's monetary policy outlook for 2024 will raise interest rates twice by the end of the year as a base case.

Can it be taken that the environment is ready - Minister of Finance Suzuki asked about exchange intervention
Finance Minister Suzuki Shunichi expressed recognition at the House of Councillors Finance Committee on the morning of the 23rd that “the environment is ready” regarding exchange intervention in response to the progress of the depreciation of the yen. I answered the question of Mr. Kenshi Katsube of the Constitutional Democratic Party that there is an implicit understanding that tolerates exchange rate intervention while the rising dollar has an adverse effect on each country's economy.

Global electric vehicle sales, IEA forecast to exceed 50% of new cars in 2035
The International Energy Agency (IEA) released a report on the latest market trends for electric vehicles (EVs) on the 23rd. It was predicted that EVs would account for over 50% of the world's new car sales in 2035. Low-cost cars, mainly from Chinese manufacturers, will expand the EV market. The conditions are reduced in the price of in-vehicle batteries and the development of charging infrastructure.

Notable stocks
Dai-ichi Life is “attractive” if it exceeds 2% in 30 years - super long-term debt accumulation in fiscal year 24
$Dai-ichi Life Holdings(8750.JP)$The policy is to accumulate and increase ultra-long-term bonds in 2024 continuing from the previous fiscal year. Director Horikawa Kohei of the Management and Planning Department stated at a press briefing on the 23rd that the 30-year bond yield “will increase purchases if it exceeds 2%.”

Mitsui & Co., Ltd. participates in LNG production in UAE at a total project cost of 1 trillion yen
$Mitsui(8031.JP)$It became known on the 23rd that it will participate in the liquefied natural gas (LNG) business in the United Arab Emirates (UAE). The total project cost is 7 billion dollars (over 1 trillion yen), and it will produce about 10 million tons per year, which is 15% of Japan's annual demand, such as Abu Dhabi National Petroleum (ADNOC). As the conflict in Ukraine continues for a long time, the world's energy dependence on Russia will be lowered.