Tokyo Market Summary: Nikkei Average Continues to Fall, Stock Buffett Surprise 1 Year, Mitsubishi Corp. Stands Out

Top news
Trading company stock Buffett Surprise's 1-year rise in Mitsubishi Corp. stands out
“I would like to consider additional investment in Japanese stocks.” 11 days and 1 year have passed since Warren Buffett, a famous American investor who visited Japan, said this in an interview with the Nihon Keizai Shimbun. It showed the intention to buy more $Mitsubishi(8058.JP)$Stock prices for the five major trading company stocks have risen drastically, and purchases expecting improvements in capital efficiency etc. have spread to other major domestic stocks. The Nikkei Stock Average strengthened its upward trend and hit an all-time high in 2024. The “Buffett Surprise” was the driving force behind historic stock prices.

A market that tests the seriousness of the government without intervention even if the yen exchange rate is in the 153 yen range
The exchange rate of yen against the dollar fell to the 153 yen range of 1 dollar for the first time in 34 years in the foreign exchange market. The market has broken through the 1 dollar = 152 yen, which has been viewed as a line of defense for exchange intervention, and market participants' sense of caution against intervention has further increased. The main cause of the unstoppable depreciation of the yen is the strong appreciation of the dollar against the backdrop of deep-seated US inflation, and there are many views that the yen will be temporarily boosted even if intervention is intervened. As America's early interest rate cut scenario collapses, bargaining between the government and the market is likely to become even more intense.
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Google invests 150 billion yen to build a new undersea cable between Japan and the US
US Google announced on the 10th that it will invest 1 billion dollars (about 150 billion yen) in an undersea cable connecting Japan and the United States. Two lines connecting Guam and Hawaii from Japan will be built, and connected to other cables to make them double tracks. Google is keeping pace with the strengthening of Japan-US cooperation associated with Prime Minister Fumio Kishida's visit to the US in terms of infrastructure investment. In response to Prime Minister Kishida's visit to the United States, the United States $Microsoft(MSFT.US)$Major tech companies have announced investments one after another, such as announcing data center investments within Japan.
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Notable stocks
Megabanks such as Mitsubishi UFJ are going backwards, and domestic interest rates are under upward pressure in response to US CPI announcements ◇
$Mitsubishi UFJ Financial Group(8306.JP)$Ya $Sumitomo Mitsui Financial Group(8316.JP)$、 $Mizuho Financial Group(8411.JP)$Which megabanks are rising all at once. While the overall market price is soft, the “banking industry,” which is the industry-specific index of the Tokyo Stock Exchange, rose by more than 1%, showing a retrograde rise.

Socionex stands out for its strength, and business is at a high level due to institutional investors' actual demand purchases and short buybacks ◇
$Socionext(6526.JP)$It has performed business at a high level, showing strength to move in the positive zone amid a general decline in the market. The trading price here also occupied an immovable top position $Lasertec(6920.JP)$ The market's gaze on Socionex is getting hotter day by day, as there are days when it surpasses and takes the lead.

Petroleum-related stocks such as INPEX are high, and high crude oil prices due to the tense situation in the Middle East are viewed as material◇
$Inpex(1605.JP)$Ya $Japan Petroleum Exploration(1662.JP)$、 $ENEOS Holdings(5020.JP)$Petroleum-related stocks such as these are expensive. INPEX continued to grow for 3 days, and since 2008/9, it has been bought in the high price range for the first time in 15 years and 7 months. The US crude oil futures exchange rate on the 10th rose to 1 barrel = 86.21 dollars for the 5 month period of WTI (West Texas Intermediate), 0.98 dollars higher than the previous day.

JCR upgrades SoftBank G rating to “A” - outlook “stable”
The Japan Credit Rating Agency (JCR) announced on the 11th $SoftBank Group(9984.JP)$It was announced that the rating will be raised one level from “A-” to “A”. The outlook is “stable.”

Toyota invests 46 billion yen in US venture sector — climate change and technology
$Toyota Motor(7203.JP)$will invest 300 million dollars (about 46 billion yen) into the US venture sector to support early-stage startups focusing on climate change and so-called frontier technologies, such as carbon capture, artificial intelligence (AI), and commercialization of space businesses.

Mitsui Fudosan invests in nuclear fusion start-ups to secure decarbonized power
$Mitsui Fudosan(8801.JP)$It was announced on the 11th that it has invested in Kyoto Fusioniering (Tokyo, Chiyoda), an emerging nuclear fusion company. Mitsui Fudosan is investing in renewable energy and working to save energy in buildings. If nuclear fusion is put into practical use, there is a possibility that clean power sources can be stably procured, and they will participate from the development stage.

Rakuten G's high-yield dollar bonds suggest issues awaiting Mr. Mikitani
Led by President Hiroshi Mikitani $Rakuten Group(4755.JP)$After recording a final deficit for 5 consecutive terms due to entering the mobile business, it has been forced to bear a large cost burden while trying to rebuild. In recent years, Rakuten G, which raised its name recognition overseas due to sponsorship agreements with the Golden State Warriors of the US pro basketball NBA to which Stephen Curry belongs and FC Barcelona soccer, is in a hurry with cash flow due to huge corporate debt redemptions ahead over next year. This year, dollar-denominated corporate bonds have been issued twice so far, and a total of 3.8 billion dollars (about 580 billion yen) have been raised.
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Exawizz is soft, and the announcement of the start of provision of the high-speed processing version “GPT-4 Turbo” is also a profit determination sale
$ExaWizards(4259.JP)$It has been a soft trend. The company announced on the 11th that the group company Exa Enterprise AI will cooperate with Microsoft Japan to begin providing a high-speed processing version of the “GPT-4 Turbo” in the corporate service “exabase generation AI powered by GPT-4 (exabase generation AI)”. Purchases that saw this as a clue came in, but the upper price was heavy, and gradually they were pushed by sales for profit determination purposes.