Tokyo Market Summary: Nikkei average over 1000 yen depreciation, yen appreciation, and US tech stock depreciation double punch

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Government to revise growth rate slightly downward to around 1% in fiscal year 24 = related sources
The government is expected to slightly revise the real growth rate forecast for fiscal year 2024 from 1.3% as of January to around 1% according to the mid-year estimate to be announced later next week. Lower consumption due to depreciation of yen and high prices is the main factor. The real growth rate forecast for fiscal year 25, which will be announced for the first time this time, is expected to be in the first half of the 1% range. Several government officials made it clear.

The Chief Cabinet Secretary “doesn't want excessive exchange rate fluctuations” did not mention whether or not to intervene
Chief Cabinet Secretary Hayashi Yoshimasa made a statement at the press conference on the 12th regarding the fact that the yen exchange rate against the dollar surged to the middle of the $1 = 157 yen range in the foreign exchange market on the 11th. Regarding the view that the government and the Bank of Japan intervened in exchange by buying yen and selling dollars, they avoided mentioning “I want to refrain from specifically speaking about exchange intervention because there is a risk that it will have an unforeseen impact on the market.”
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Correction expectations for excessive yen depreciation due to “yen appreciation merit” stocks such as NITORI HD being bought
The yen grew rapidly in the foreign exchange market, mainly against the dollar, and domestic demand-related stocks that received the advantage of yen appreciation were bought. For domestic demand companies that import raw materials and products, the exchange rate trend, which had been fluctuating at the depreciation level of the yen for the first time in 38 years, led to cost increases and became a factor that lowered profitability, but expectations of revisions to excessive depreciation of the yen encouraged a reversal in stock prices. Import and sell furniture products produced in overseas factories $Nitori Holdings (9843.JP)$Shares recorded an intraday rate of increase for the first time in 5 months since 2/9, at 17,505 yen, 5.6% higher than the previous day. Other than this, commercial supermarket chains $Kobe Bussan (3038.JP)$The stock rose 4.8% at one point to 3786 yen, a major paper maker's $Oji Holdings (3861.JP)$Shares rose 2.4% to 641 yen, a major fishery company $Nissui (1332.JP)$Stocks also rose 2.7% to 870.5 yen, etc.

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Real estate stocks such as Sumitomo have by far the highest rate of increase by industry, and capital shifts due to receding concerns about rising interest rates ◇
$Sumitomo Realty & Development (8830.JP)$Starting with a sharp recovery to the 5000 yen level due to an increase of over 5% at one point, $Mitsui Fudosan (8801.JP)$、 $Mitsubishi Estate (8802.JP)$Major real estate stocks, etc. have generally gone against the sharp decline in the market and are attracting purchases. Today, sales are high, mainly stocks with large market capitalization that contribute to the index, but even for large stocks, those that are strong in domestic demand stand out. In particular, the shift in investment funds is conspicuous in “real estate,” and it is by far the highest rate of increase by industry.

Freebies and covers rapidly increased, and funds were invested in growth stocks due to the unwind of large stock rallies ◇
$Freee KK (4478.JP)$Ya $Cover (5253.JP)$、 $Genda (9166.JP)$The sharp rise in growth stocks, etc. is conspicuous. On this day, the decline in the Nikkei Stock Average exceeded 1000 yen at one point. The rapid appreciation of the yen after the announcement of the US CPI in June and the sharp fall of the US NASDAQ comprehensive stock price index the day before for the first time in 8 days have burdened the overall market price. As the unwind of the large stock rally became prominent, there was a movement to divert funds to small growth stocks in the growth market that had been delayed, and the Tokyo Stock Exchange Growth Market 250 Index has risen drastically by over 3% compared to the previous day

Be wary of the overheating of the fall in SoftBank G shares, the response to the British semiconductor takeover is weak
$SoftBank Group (9984.JP)$(SBG) fell for the first time in 13 business days. At one point, it fell to 0.01 million1425 yen, which is 495 yen (4.15%) lower than the previous day. It had risen close to 2000 yen due to a rise in stock prices of English Arm, which is under its umbrella, for 12 days until the previous day. SBG shares have continued to grow for 12 days since 2017/4/5, and today sales for profit determination purposes that are wary of short-term overheating are dominant.

Seven & i HD stock year-to-date low domestic and international convenience store slump disgust
$Seven & i Holdings (3382.JP)$has plummeted. A temporary 8.37% depreciation of 1,777 yen 50 yen was added, and the year-to-date low was updated on a basis that took stock splits into account. After the end of trading on the 11th, it was announced that consolidated net profit for the fiscal year ending 2024/3-5 was 21.3 billion yen, down 49% from the same period last year. It fell short of the QUICK consensus of market expectations. Domestic and international convenience store businesses are sluggish, and disgusting sales are growing.

Fast Retail shares depreciated by over 4% and sold at a profit in response to financial results
On the stock market on the 12th $Fast Retailing (9983.JP)$has fallen, and it is moving in the 43,300 yen range, which is over 4% lower. Since the Nikkei Average's index contribution is high in the company's stock price, it is currently pushing down the Nikkei Average by 180 yen with 1 stock. Although the consolidated financial results (international accounting standards) forecast for the full fiscal year ending 2024/8 was revised upward on the 11th, stock prices continued to rise 5 business days before settlement, so today's development is ahead of profit-taking sales.

Distribution source: Reuters, Nihon Keizai Shimbun, MINKABU