Tokyo Market Summary: Nikkei Average depreciation of 971 yen, Japanese stocks headwind against Trump Trade's losers against semiconductors and automobiles

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The Nikkei Average plummeted, and Japanese stocks were the losers in Trump Trade
The Nikkei Average was drastically lower than 900 yen at one point compared to the previous day. Sales swelled mainly in semiconductor stocks from “dollar appreciation correction,” which was emphasized in interviews etc. by former President Trump, who was selected as the presidential candidate of the US Republican Party, and skeptical statements surrounding the defense of Taiwan, where the semiconductor industry is thriving. The America First Principle advocated by Mr. Trump also greatly benefits US stocks, but it became clear that it would put selling pressure on Japanese stocks.
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July “no interest rate hike” forecast 70% Bank of Japan watcher survey
The Bank of Japan will hold a monetary policy meeting on the 30th to 31st. According to a questionnaire survey conducted by Nikkei Quick News (NQN) targeting “Bank of Japan watchers” who analyze monetary policy, predictions that policy interest rates would be maintained at the current “0 to 0.1%” at this meeting accounted for 70% with 18 out of 27 people. The Bank of Japan had already announced a policy to compile reduction plans for government bond purchases, and the view that “simultaneous decisions” of reduction plans and additional interest rate hikes would be avoided prevailed among watchers.

Japan grows by 2 digits, strong HV sales = European new car sales in the first half
The number of new car sales within the European Union (EU) region for the January-6 fiscal year announced by the European Automobile Manufacturers Association (ACEA) on the 18th was 5.68 million3843 units, up 4.5% from the same period last year. While electric vehicles (EVs) stalled, hybrid vehicles (HVs) performed well. The Japanese team as a whole recorded a 22.0% increase and double-digit growth, and their good fight was conspicuous. Sales in the first half of the year increased by 20.7% for Toyota Motor Corporation, 17.3% for Nissan Motor Company, and 31.0% for Suzuki. Meanwhile, Tesla, a major US EV company, was down 9.1%.

Fear that 5 companies, including Toyota, will not meet the new US emission regulations even if they clear electrification targets
$Toyota Motor(7203.JP)$There is a risk that the five companies that occupy the top positions in terms of sales volume in the United States will not reach the exhaust gas regulation standards of the US Environmental Protection Agency (EPA) even if they clear the electrification targets set by each company. The environmental protection organization Greenpeace showed predictions based on each company's sales targets, etc.
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Featured stocks
East Elec falls 18% in 2 days, plummets for the first time in 13 years due to concerns about regulations against China - semiconductor sales continue
$Tokyo Electron(8035.JP)$The stock price continues to fall. Sales also appeared on the 18th in response to Bloomberg reports that the US government has strengthened semiconductor regulations against China and is considering taking strict trade restriction measures against companies, etc. The 2-day depreciation rate of East Elec shares reached 18% at one point, making it the largest since 2011/3. Even in the US market on the 17th, sales that were disgusting with reports spread to semiconductor-related stocks and high-tech stocks, and the Philadelphia Semiconductor Stock Index (SOX) fell 6.8%, which was drastically low since 20 on a closing price basis.
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Electric power stocks such as Hokuden have a retrograde appreciation, the appreciation of yen merit · capital inflow due to demand awareness related to data centers ◇
$Hokkaido Electric Power(9509.JP)$It's urgent to switch back and forth. Construction of a new Lapidus plant that handles advanced semiconductors is progressing in Hokkaido, and electricity demand in Hokkaido is expected to expand, including the installation of data centers. Under these circumstances, the depreciation of the dollar and appreciation of the yen progressed rapidly until 1 dollar = 155 yen level in the foreign exchange market. Expectations have increased that the effects of the rise in fuel costs due to the depreciation of the yen will calm down in the future, and funds have flowed into electric power stocks in general, and it seems that Hokuden's stock price has been boosted. $Kansai Electric Power(9503.JP)$Ya $Kyushu Electric Power(9508.JP)$、 $Chubu Electric Power(9502.JP)$has gone retrograde, and the rate of increase of the “electricity/gas industry” in the industry-specific index is approaching 2%.

SoftBank and others invest 3.7 billion yen in Avatar Inn under the umbrella of ANA
$SoftBank(9434.JP)$etc. are on the 18th, $ANA Holdings(9202.JP)$It was announced that a total of 3.7 billion yen has been invested in Avatar Inn (Tokyo/ Central), a robot development startup under its umbrella. SoftBank and Avatar Inn have teamed up to provide customer service with robots equipped with artificial intelligence (AI) for industries with labor shortages.

Distribution source: Jiji Press, Nihon Keizai Shimbun, MINKABU, Bloomberg