Tokyo Market Summary: Nikkei Average depreciation of 156 yen due to the biggest decline in fund outflow rate in the past 8 years from Japan Stock Mutual Fund

Top news
Angle: Outflow of funds from Japanese stock mutual funds due to a decline in market momentum
According to LSEG Ripper, funds equivalent to 7.2 billion dollars flowed out in May from mutual funds in Japan and the world that mainly invest in Japanese stocks, making it the largest outflow in the past 8 years. The background is that the momentum of the market, which has been rising over a long period of time, has been lost, and interest rate hike observations have risen. Martin Schultz, senior portfolio manager at Federated Hermes, said, “In our opinion, there is a high probability that Japanese stocks will go through an upward phase so far and enter a landing in the short to medium term.”

Mr. Masanao Pimco says that Japanese government bonds are a market where excess profits can be targeted - the importance of Japanese government bonds will increase in the world
Pacific Investment Management (Pimco), a major US bond manager, predicts two interest rate hikes by the Bank of Japan by the end of the year, and expects Japanese government bonds to return to a market where high profits can be targeted as yields rise. Mr. Masanao Tomoya, co-representative of Pimco Japan Limited and general manager of Asia Pacific Joint Management, pointed out in an interview on the 12th that “not only are expected returns recovering from Japanese government bonds, but it is a market blessed with excess earnings added to active managers.” He stated that “there is no doubt that it will become a very important market” for global bond management companies such as Pimco.

Notable stocks
Toyota continued to decline for 3 days, concerns such as certification fraud issues overlapped, and the total market value split 50 trillion yen
$Toyota Motor(7203.JP)$It has been falling continuously for 3 days. In addition to the fact that certification fraud issues have come to a close eye since the beginning of this month, there are also reports considering the sale of strategically held shares by Megabanks 2, and investor sales are continuing. The stock price devalued nearly 20% from 3891 yen set in March, and the total market value fell below 50 trillion yen.

Honda starts full-scale EV development in Japan and starts light commercial use in October
$Honda Motor(7267.JP)$It was announced on the 13th that the commercial light electric vehicle (light commercial EV) “N-VAN E:” (NVAN E) will go on sale in October. It can now be purchased from the 1 million yen range with subsidies included, and the advantage was enhanced with a cruising range of 245 kilometers. Starting with light commercial EVs, EV development in Japan will begin in earnest.
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Sony PlayStation will compete in family games this fall
$Sony Group(6758.JP)$The home video game console “PlayStation (PS)” is known for releasing bloody games such as “The Last of Us” and “God of War.” However, they will compete in family games this fall.
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Keisei Electric's OLC stock reduction, ISS also supports the English Fund's shareholder proposal
The British investment fund Palliser Capital will open on the 11th $Keisei Electric Railway(9009.JP)$I hold it against $Oriental Land(4661.JP)$It was announced that the US voting advisory company Institutional Shareholder Services (ISS) supported shareholder proposals calling for a reduction in shareholder ratios in (OLC) shares. Following the US advisory firm Glass Lewis, they agreed with the shareholder proposal.