Tokyo Market Summary: Nikkei average depreciation of 325 yen inflation expectations are at a record high, boosting the Bank of Japan's July interest rate hike - prices are high due to the depreciation of the yen

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Inflation expectations are at a record high, boosting the Bank of Japan's July interest rate hike - prices are high due to the depreciation of the yen
The index showing investors' expectations for inflation in Japan hit a record high. There is a view in the background that the depreciation of the yen in foreign exchange rates will increase pressure on prices. A rise in inflation expectations will lead to a decline in real interest rates, and it is a factor that encourages the Bank of Japan to raise additional interest rates.

The focus of the “depreciation of the yen for the first time in 37 and a half years” due to the fall in the Nikkei average is less about domestic economic concerns than benefits from export companies
There was a scene where the decline in the Nikkei Average widened to 473 yen. The excessive depreciation of the yen seems to have made them keenly aware of the negative aspects of adverse effects on the domestic economy, and it looks like they have waited long for a move aimed at the milestone of 40,000 yen. rice $Micron Technology(MU.US)$From acceptance that the sales forecast shown by was unsatisfactory, it plummeted due to overtime transactions, $Tokyo Electron(8035.JP)$It encouraged sales to semiconductor-related stocks with high prices, etc. Assuming that the depreciation of the yen will lead to an increase in the profits of export-related companies, it is a normal reaction that it is a factor in stock appreciation. However, today $Toyota Motor(7203.JP)$Automobile stocks were generally weak, etc., and the depreciation of the yen led to an increase in purchase costs $Nitori Holdings(9843.JP)$There was no response from yen depreciation merit stocks, such as asking for year-to-date lows, and sales appeared on yen depreciation disadvantage stocks. Futures purchases by overseas speculators, which kept pace with the depreciation of the yen, also hid in the shadows.

How do you look at the depreciation of the yen for the first time in 37 and a half years “no intervention effect” and “even in the 170 yen range”
The decline in yen exchange rates is accelerating in the foreign exchange market. It hit a low of 37 and a half years since 1986/12, with 1 dollar = 160 yen 88 yen on the 26th. It cut below the low at the end of April this year, when exchange intervention observations for yen purchases by the Japanese government and the Bank of Japan came out, and attention is once again being drawn to the attitude of the Japanese currency authorities. We asked market participants whether there will be any intervention in the future, the effects if implemented, and the medium-term yen exchange rate forecast for about 3 months ahead.
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Domestic production by 8 car companies, plus Daihatsu recovered for the first time this year in May
$Toyota Motor(7203.JP)$Domestic production in May, which was compiled on the 27th by 8 domestic passenger car manufacturers, etc., was 616,000 units, up 4% from the same month last year. This is the first time this year that it has surpassed the previous year in a single month. Daihatsu Motor, which had stopped domestic production due to fraud issues, resumed operation of all plants, and the number of units produced recovered.

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Toyota surpassed the previous year in May global sales for the first time in 4 months, production split for 4 consecutive months due to China's echo
$Toyota Motor(7203.JP)$Global sales of Toyota alone (including Lexus cars) in May 2012, which were announced on the 27th, surpassed the same month of the previous year for the first time in 4 months, but global production fell below for 4 consecutive months. Sales were strong, mainly in North America and Europe, but the decline in production in China resonated.
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Toyota's global sales in May fell 2% from the same month last year - Daihatsu drastically decreased due to fraud

Hitachi's total market capitalization surpasses Sony G for the first time in 9 years and evolves into AI x electric power stocks
$Hitachi(6501.JP)$The total market value of stocks was on the 27th for the first time in about 9 years $Sony Group(6758.JP)$It surpassed. In Japanese companies,Toyota Motor、Mitsubishi UFJ Financial Group、KeyenceIt came in 4th place after Construction of data centers for generative AI (artificial intelligence) is progressing, and the power transmission and distribution business, which efficiently controls electricity, is doing well. AI implementation support for factory and infrastructure customer companies has also begun to show results. After more than ten years of structural reforms, it has transformed into an “AI brand.”

SoftBank G invests in Perplexity with a valuation of $3 billion - stakeholders
$SoftBank Group(9984.JP)$“Vision Fund 2” invests in American AI startups and perplexity AI with a valuation value of 3 billion dollars (about 480 billion yen). According to people familiar with the situation, SoftBank G plans to invest 10 million to 20 million dollars in perplexity, which wants to use AI to counter Google searches under the umbrella of Alphabet. It will be invested as part of a funding round to collect a total of 250 million dollars for Perplexity. The company will be one of the most highly regarded unicorn companies in the industry.

Nitori HD stock is close to a year-to-date low, and the yen depreciates for the first time in 37 and a half years, and there are concerns about performance
$Nitori Holdings(9843.JP)$Continued decline. It fell to 16,660 yen, down 1.76% at one point, and came close to the year-to-date low (10,6540 yen) set on 6/17. The yen exchange rate in the New York Foreign Exchange Market on the 26th reached a depreciation of the yen and a high level of the dollar for the first time in about 37 and a half years, with 1 dollar = in the latter half of the 160 yen range. It is being driven by sales that are wary of the rise in purchase costs due to the acceleration of the depreciation of the yen and adverse effects on business results.

Mitsubishi UFJ-4 days of continuous growth investment in Thai digital financial services companies
$Mitsubishi UFJ Financial Group(8306.JP)$It continued to grow for 4 days. Mitsubishi UFJ Bank, which is under the umbrella of the company, announced on the 26th that it will invest approximately 30.6 billion yen in Ascend Money Company, which provides digital financial services in Thailand. Furthermore, bank stocks in general have risen against the backdrop of rising long-term interest rates in Japan and the US.

Shareholders' general meeting of 3 megabanks rejects shareholder proposals calling for strengthened climate change countermeasures
$Mitsubishi UFJ Financial Group(8306.JP)$、 $Sumitomo Mitsui Financial Group(8316.JP)$、 $Mizuho Financial Group(8411.JP)$At the regular general shareholders' meeting held by the three companies until the 27th, all shareholder proposals calling for strengthened climate change countermeasures by environmental groups were rejected. This is the second year in a row that the three companies have vetoed.