Tokyo Market Summary: Nikkei Average falls for the first time in 4 days The decline in semiconductor-related stocks is heavy

Top news
The Nikkei Average is slow to buy unreliable economy-sensitive stocks overseas
At the Tokyo Market on the 21st, there was a scene that seemed to reflect the movement of the rice market as it was. It had risen the day before $Advantest (6857.JP)$、 $Lasertec (6920.JP)$、 $Tokyo Electron (8035.JP)$While semiconductor-related products declined today, economy-sensitive stocks that have aspects that are positioned as undervalued stocks such as shipping, insurance, and mining ranked high in terms of rate of increase by industry. However, Kentaro Shida, Deputy Director of the Research Office of Yamawa Securities, points out that “it is difficult to say that the direction of searching has changed from high-tech stocks to economy-sensitive stocks.”
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Plans were decided to buy long-term government bonds in July to reduce the amount... but is the hurdle of putting off interest rate hikes to the Bank of Japan high?
At the Bank of Japan's monetary policy meeting held in June, a policy to reduce purchases of long-term government bonds was decided. Specific plans will be decided at the next July meeting. However, interest rate hikes have also been observed in July. Will they be decided at the same time? I asked Chief Economist Koichi Fujishiro of the Dai-ichi Life Economics Research Institute to contribute. Governor Ueda answered, “There is no data on the economic price situation that comes out by July, and raising short-term interest rates and adjusting the degree of monetary easing depending on the information that comes in is a matter of course,” but it takes a certain amount of courage to simultaneously decide on the purchase reduction of long-term government bonds and an increase in short-term interest rates.

Angle: Institutional investors short term bonds in preparation for BOJ purchase cuts
Fund managers and investors around the world are looking at a gradual break away from the ultra-accommodative policy expressed by the Bank of Japan, shorted the shortest Japanese government bonds, and are taking positions prepared for a further depreciation of the yen.

Long-term interest rates temporarily rise to 0.980% US bond sales spread
Long-term interest rates have risen (bond prices have fallen). The yield on new 10-year government bonds, which is an indicator, was 0.980%, 0.030% higher than the previous day. Long-term US interest rates rose the day before due to a retreat in US interest rate reduction observations, and upward pressure was also applied to domestic interest rates. The fact that speculations surrounding policy normalization by the Bank of Japan intensified in response to the depreciation of the yen and appreciation of the dollar in the foreign exchange market, also became a burden on bonds.

The depreciation of the yen temporarily fell to the 159 yen level due to a retreat in US interest rate observations
The yen exchange rate against the dollar fell to the level of 1 dollar = 159 yen at one point in the Tokyo Foreign Exchange Market on the 21st. The depreciation of the yen and the high level of the dollar were set for the first time in about 2 months since 4/29. In the New York market the day before, senior US Federal Reserve (Fed) officials expressed the view that it would take time to control inflation, and US interest rate reduction observations receded. The widening interest rate difference between Japan and the US was recognized, and yen sales and dollar purchases progressed.
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Notable stocks
Excessive expectations surrounding stock buybacks receded at the general shareholders' meeting, with SoftBank G weakening in the backstage
$SoftBank Group (9984.JP)$It has been a weak development in the backfield. The company held an ordinary general meeting of shareholders on the 21st. While Chairman and President Masayoshi Son of SoftBank G showed an attitude of moving forward with the realization of ASI (artificial superintelligence), he stated that stock buybacks etc. were “small things” compared to the company's mission. It was reported earlier this month that Elliot Management, a US hedge fund known as an activist, is requesting a stock buyback against the company, and there is a history of upward pressure on stock prices. Short-term investors accepted that SoftBank G would not immediately move to buy company shares, which seems to have been a factor encouraging sales.

SBG General Meeting “Crying Cry Cry Letting Go” of Mr. Son's NVIDIA Stock
$SoftBank Group (9984.JP)$An ordinary general meeting of shareholders was held in Tokyo on the 21st. Since 2022/11, Chairman and President Masayoshi Son has left explanations of performance and business strategies at financial results conferences to Chief Financial Officer (CFO). Mr. Sun is a domestic telecommunications subsidiary on the 20th $SoftBank (9434.JP)$He attended the general meeting of shareholders as a director and made several statements in question and answer sessions, but other than that, it was the first time in about 8 months since 23/10 that it was on the front stage. Asked about the reason why SoftBank sold NVIDIA shares, they said, “Vision Fund had about 5% of the shares, but what they let go of was that they had to improve the performance of Vision Fund. I thought I needed cash too, so I cried and let go. It was a waste,” she looked back on.

Toyota resumes production at 5 plants = parts procurement, sequentially starting the evening of the 21st
$Toyota Motor (7203.JP)$On the 21st, it was revealed that production will resume sequentially from the evening of the 21st for the group's 5 domestic factories and 6 lines, which had been suspended due to lack of parts. Production had been suspended since the evening of the 20th, but progress was made to procure parts.