Tokyo Market Summary: Nikkei Average depreciation of 712 yen asked market participants “37,000 yen per month”

Top news
The Nikkei average depreciates by 800 yen, and “37,000 yen per month” as asked by market participants
European political unease is behind the drastic decline in the Nikkei Stock Average in the Tokyo Stock Exchange on the 17th. French President Macron received defeat results in the European Parliament election where far-right forces made a breakthrough, and announced the dissolution election for the House of Representatives. There is a growing possibility that far-right political parties will advance in the lower house election where voting begins at the end of June in France, and concerns are spreading that political unease originating in Europe could have an adverse effect on the world economy. Even if we look at the domestic market, there is little material for overseas investors to actively buy Japanese stocks. Domestic companies' earnings forecasts for the fiscal year ending 2025/3 have declined, and there are many investors who want to confirm progress by announcing financial results for the April-6 fiscal year.
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Government bond purchase reduction, 2 trillion yen per month is likely to raise interest rates after fall = former Bank of Japan deliberation committee member Sakurai
In an interview with Reuters on the 17th, Mr. Makoto Sakurai, a former Bank of Japan deliberation committee member, expressed the view that 2 trillion yen per month is dominant based on the amount of government bond purchases that the Bank of Japan will launch at the July monetary policy meeting, etc. Since reimbursements will increase rapidly in fiscal year 25, there is also a possibility that it will reach 1 trillion yen. Regarding the increase in policy interest rates, the decision at the July meeting was postponed due to weak housing investment, indicating that it would be in the fall or later.

Japan-US monetary policy revision “once” by the end of the year “1 dollar = 150 to 155 yen” QUICK monthly survey/foreign exchange
Against the backdrop of revisions in Japan-US monetary policy, it seems that the yen will slowly appreciate against the end of the year in exchange of the yen against the end of the year. When I asked 3 notable materials for the second half of 2024 in the June monthly survey ＜Foreign Exchange＞ conducted jointly by QUICK and Nikkei Veritas, “US FRB monetary policy management” rose to 94% and “Bank of Japan's monetary policy management” to 88%. The “US presidential election,” which will be voted on in November, was 71%.

Notable stocks
Toyota Motor Corporation stock temporarily fell 2.9% and production continued to be suspended until the end of July
$Toyota Motor(7203.JP)$It has been falling continuously for 5 days. At one point, 3025 yen, which is 91 yen (2.92%) lower than the previous weekend, was added. The electronic edition of the Nihon Keizai Shimbun on the 14th reported that “(Toyota) has made it clear that (Toyota) will continue to stop production until the end of July” for the 3 models whose production has been suspended due to unauthorized certification of “type designation” necessary for mass production of automobiles. Sales that are disgusted by the prolonged effects of certification fraud are growing.
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Japan's rising semiconductor stock “Disco” rides AI fever
Artificial intelligence (AI) requires further acceleration of semiconductor chips, but the cost of continuing to achieve it continues to rise. Therefore, advanced packaging has become the latest focus in the semiconductor industry. Japanese semiconductor manufacturing equipment manufacturer, $Disco(6146.JP)$Many companies are benefiting from it, etc.

KADOKAWA stock falls sharply and is expected to recover from “Nicodynamics” for 1 month or more
On the Tokyo Stock Exchange on 6/17, $Kadokawa(9468.JP)$There has been a drastic decline. At one point in the front market, it fell 10.17% lower than the previous weekend to 2825 yen. The company announced on the 14th that restoration of services related to the video distribution “Niconico” is “expected to take 1 month or more” over system failures that have occurred throughout the group.