Tokyo market summary: Nikkei average down 325 yen, highest inflation expectations, supported by BOJ's July rate hike - higher prices driven by weak yen

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Highest inflation expectations ever recorded, pushing for a Bank of Japan interest rate hike in July as a weaker yen leads to fears of rising prices.
An index reflecting investors' expectations for inflation in Japan reached a record high. The background to this is the view that the weakening of the yen in the foreign exchange market is increasing inflationary pressure. The rise in inflation expectations leads to a decrease in real interest rates and becomes a factor prompting the Bank of Japan to raise interest rates further.

The Nikkei Average fell, dampening the impact of a "yen depreciation not seen in 37 years", with concerns about the domestic economy taking precedence over the benefits to export companies.
There were moments when the Nikkei Average extended its decline to 473 yen. The excessive weakening of the yen seems to have strongly raised awareness of the negative impact on the domestic economy, putting a damper on the movement to aim for the milestone of 0.04 million yen. $Micron Technology (MU.US)$Following the perception that the projected revenue was not satisfactory, it sharply declined in after-hours trading, prompting selling in semiconductor-related stocks, among others. $Tokyo Electron (8035.JP)$A weak yen usually leads to an increase in the profits of export-related companies, which is a factor supporting a rise in stock prices. However, today is an exception. $Toyota Motor (7203.JP)$Automobile stocks, among others, were generally weak, and the weakening yen led to an increase in procurement costs. $Nitori Holdings (9843.JP)$Beneficiary stocks of weakening yen showed no reaction, while stocks affected by weakening yen experienced selling pressure. Speculative futures buying by overseas investors in line with the weakening yen also lost momentum.

How to view the yen's weakening for the first time in 37 years: 'No intervention effect,' 'maybe even in the 170 yen range.'
The decline in the yen exchange rate is accelerating in the foreign exchange market. On the 26th, the yen hit a 37-year low of 160.88 yen against the dollar, the lowest level since December 1986. It fell below the April low, when there were speculations of currency intervention by the Japanese government and the Bank of Japan, and attention is once again focused on the stance of Japan's currency authorities. We asked market participants about the possibility of future intervention, the effectiveness of intervention if implemented, and the medium-term outlook for the yen exchange rate about three months ahead.
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Finance Minister Suzuki says he will take necessary measures at around 160 yen.
Undesirable excessive exchange rate fluctuations, want to take appropriate measures = Chief Cabinet Secretary.

Production of eight domestic car companies, May is the first positive growth this year, with Daihatsu recovering.
$Toyota Motor (7203.JP)$In May, the domestic production of passenger vehicle manufacturers in Japan, including 8 companies, increased by 4% compared to the same month of the previous year, reaching 610,000 units. This is the first time to exceed the previous year's level in a single month this year. Daihatsu Motor, which had stopped domestic production due to irregularities, resumed operations at all factories, leading to a recovery in production volume.

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Toyota's global sales in May exceeded the previous year's level for the first time in 4 months, while production has been declining for 4 consecutive months, heavily impacted by the Chinese market.
$Toyota Motor (7203.JP)$Toyota, including Lexus vehicles, announced on the 27th that its global sales in May 2024 surpassed the same month of the previous year for the first time in 4 months, but global production continued to decline for 4 consecutive months. Sales were strong in North America and Europe, but production was affected by the decrease in China.
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Toyota's global sales in May decreased by 2% compared to the same month of the previous year, with a significant decrease in Daihatsu's sales due to the impact of irregularities.

Hitachi's market capitalization exceeds Sony Group's for the first time in 9 years, evolving into an AI x electrical utilities stock.
$Hitachi (6501.JP)$On the 27th, the market capitalization of stocks reached its highest level in about 9 years. $Sony Group (6758.JP)$Surpassed. In Japan, Toyota Motor,Mitsubishi UFJ Financial Group,Keyenceranked 4th after. Construction of data centers for AI (Artificial Intelligence) is progressing in Japan, and the power distribution business that efficiently controls electrical utilities is performing well. The company is also starting to show results in supporting the introduction of AI for factory and infrastructure clients. After decades of structural reform, it has transformed into an "AI stock".

SoftBank Group, investing in Perplexity at a valuation of 3 billion dollars - sources
$SoftBank Group (9984.JP)$の「ビジョン・ファンド２」は米国のＡＩスタートアップ、パープレキシティＡＩに3 billionドル（約480 billion円）の評価額で投資する。事情に詳しい関係者によると、ソフトバンクＧは、ＡＩを活用してアルファベット傘下グーグルの検索に対抗したいと考えているパープレキシティに10 million－20 millionドルを出資する予定。パープレクシティの計２億50 millionドルを集める資金調達ラウンドの一環として投資する。同社は業界で最も高く評価されるユニコーンの１社となる。

ニトリHD株年初来安値接近　37年半ぶり円安で業績懸念
$Nitori Holdings (9843.JP)$が続落。一時1.76%安の0.01 million6660円まで下落し、6月17日に付けた年初来安値（0.01 million6540円）に接近した。26日のニューヨーク外国為替市場で円相場が1ドル=160円台後半と約37年半ぶりの円安・ドル高水準をつけた。円安の加速による仕入れコストの上昇と、業績への悪影響を警戒した売りに押されている。

三菱ＵＦＪ－4日続伸　タイのデジタル金融サービス企業に出資
$Mitsubishi UFJ Financial Group (8306.JP)$が4日続伸。同社傘下の三菱ＵＦＪ銀行は26日、タイでデジタル金融サービスを提供するＡｓｃｅｎｄ Ｍｏｎｅｙ Ｃｏｍｐａｎｙに約30.6 billion円を出資すると発表した。なお、日米の長期金利上昇を背景に銀行株全般が上昇している。

３メガバンクの株主総会、気候変動対策強化を求めた株主提案を否決
$Mitsubishi UFJ Financial Group (8306.JP)$, $Sumitomo Mitsui Financial Group (8316.JP)$, $Mizuho Financial Group (8411.JP)$At the regular shareholders' meetings held by the three companies by the 27th, shareholder proposals requesting enhanced measures against climate change by environmental organizations were rejected. The rejection by the three companies is the second consecutive year.