Tokyo Market Summary: Nikkei Average continues to fall wary of Bank of Japan policy revisions

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●The Nikkei Stock Average ended at 38695.97 yen, 101.54 yen lower than the previous business day
● Cautious arguments due to increased bank stock purchases, factoring in Bank of Japan policy revisions - correlation with interest rates declines
● The deferment of ETF purchases in Japanese stocks without the Bank of Japan and when they plummet is a prologue to sound
● Japanese government bond short is the best investment, Bank of Japan will revise policy next week - Blue Bay
● Attention to the handle: $Terasaki Electric (6637.JP)$、 $Nagaoka International (6239.JP)$
-MooMoo News Japan Stock Zeber

Market Overview
Today's Nikkei Stock Average ended at 38695.97 yen, 101.54 yen lower than the previous business day, and the Tokyo Stock Price Index (TOPIX) fell 8.73 points to 2648.51.

Top news
Cautious arguments due to increased bank stock purchases, factoring in Bank of Japan policy revisions - correlation with interest rates declines
While there is a possibility that the Bank of Japan's negative interest rate policy will be lifted as early as this month, investors are cautious about further buying up bank stocks that should have raised expectations for an improvement in the business environment. This is because performance improvements due to rising interest rates have already been reflected in stock prices due to purchases incorporating policy revisions.

The deferment of ETF purchases in Japanese stocks without the Bank of Japan and when they plummet is a prologue to sound
Despite the sharp drop in Japanese stocks at the beginning of this week, the fact that the Bank of Japan broke unwritten rules and forewent purchasing index-linked exchange-traded funds (ETFs) shocked the market in no small part. The possibility that the Bank of Japan will lose its buying support is easily viewed as bad news in the short term, but there is also an expectation that improvements in liquidity and price distortion will be resolved in the medium to long term, and that it will be a prologue for returning to a healthy market.

“Very important period” for overcoming deflation, indicators are improving - Cabinet Office Supervisor Hayashi
Policy Supervisor Hayashi Tomoko of the Cabinet Office expressed recognition that the Japanese economy is facing a once-in-a-lifetime opportunity to break away from deflation while asking when the Bank of Japan will step into early normalization of monetary policy.

The Japanese government bond short is the best investment, and the Bank of Japan will revise its policy next week - Blue Bay
The asset management company RBC Blue Bay Asset Management sees a short Japanese government bond as the best investment based on predictions that there is a high possibility that the Bank of Japan will go through a lift-off (start of interest rate hikes) at the monetary policy meeting to be held on the 18th and 19th.

Nippon Steel exceeded demands, Nissan and others responded in full spring labor-management negotiations
The 2024 spring labor-management negotiations reached a centralized response day for major companies on the 13th. Regarding wage improvements equivalent to a base increase (bear) that raises the basic salary level, $Nippon Steel (5401.JP)$ The response was at a level that exceeded the requirements of the labor union. $Toyota Motor (7203.JP)$ Ya $Hitachi (6501.JP)$ There was also a succession of full price responses from major manufacturing companies. Both surpassed responses from 23, which were at a high level. The burden on households is getting heavier due to rising prices, and companies that have made drastic wage increases in order to secure human resources stand out.

Toyota responds in full, raises starting salary for all occupations and freezes for 1 year in pursuit of productivity
$Toyota Motor (7203.JP)$ On the 13th, at the 4th labor-management council meeting of the 2024 spring labor-management negotiations (spring battle), they answered the labor union's request in full. Starting salaries for new employees were raised in all occupations in order to be heavily distributed to young people, and improvements in treatment for those re-employed after retirement and promotion of re-employment for people aged 65 and over were also shown. In order to improve workplaces, management based on indicators such as efficiency and productivity will also be frozen for 1 year.

Notable stocks
Terasaki Electric skyrocketed, a hot stock on the stock newspaper web
We handle power distribution control systems for ships $Terasaki Electric (6637.JP)$ However, the price rose to 2311 yen, which is 5.3% higher than the previous day. The stock newspaper website picked it up as a “hot stock” on the 12th.

Nagaoka --- significant growth continues, announcing the implementation of share buybacks and dividend increases due to off-site transactions
$Nagaoka International (6239.JP)$ has continued to increase drastically. As a result of today's off-site transaction, we have carried out a share repurchase of 500,000 shares, which is 7.1% of the number of issued shares. The purpose of acquisition is to apply it to shares issued as stock rewards to employees. It seems that the Hamada Group, which is a major shareholder, has responded to the stock buyback. In addition to leading to an increase in value per share in the short term, it has been announced that the dividend forecast for the fiscal year ending 24/6 will also be raised to 30 yen from the previous plan of 23 yen, and positive responses prevail in stock prices.

Distributor: Bloomberg, Nihon Keizai Shimbun, Jiji Press, QUICK Money World, Traders Web、Reuters