Tokyo Market Summary: Nikkei Average rebounds for the first time in 3 days, risk on with “no increase in US interest rates”

Top news
Brakes on the depreciation of the yen, thin ice time, and signs of a deceleration in the US economy
The brakes are on the rapid depreciation of the yen. The yen exchange rate on the 7th remained at a high level of about 6 yen from the 160 yen range, which was the 34-year low of 1 dollar = 154 yen, which was attached to the previous week. In addition to exchange intervention observations by the government and the Bank of Japan, the expansion of interest rate differences between Japan and the US came to a standstill due to a decline in US economic indicators. There is no change in the number of domestic players that want to raise dollars the most, and there are also voices that it is just “time gain” by suppressing the depreciation of the yen once.

Nikkei Stock Average, 40,000 yen at the end of the year, Mr. Nishio of Dai-ichi Life Insurance
After the Nikkei Average hit an all-time high in the 40,000 yen range in March, adjusted sales continued and it is currently moving in the 38,000 yen range. What is the outlook for 24 years? I asked Nishio Akinao, stock manager of Dai-ichi Life Insurance. It seems that the range exchange rate will continue to fluctuate greatly by the end of the year due to US economic indicators and monetary policy trends. Over the summer, the sense that Japanese and US stocks are overvalued will intensify due to prolonged high interest rates associated with deep-seated US inflation, and there is a risk that they will be adjusted to 35,000 yen. Strong corporate performance will be supported towards the end of the year, and there will be a scene where it will rise above 40,000 yen.

Crude oil futures continue to rise, Gaza cease-fire negotiations are difficult - risk on mood due to strong Asian stocks
The crude oil futures exchange rate continued to rise in trading on the 7th Asian time. The background is that the situation in the Middle East has become tense against the backdrop of the Israeli side rejecting the cease-fire plan over the fighting in the Palestinian Autonomous Region of Gaza, and the risk on mood spreading across financial markets.

Pay attention to the handle
Rakuten Group has rapidly increased stock prices and the number of new NISA accounts opened is at the top
$Rakuten Group(4755.JP)$has grown rapidly. I added 794 yen, which was 5.55% higher at one point. The morning edition of the Nihon Keizai Shimbun dated 7th reported on the new small investment tax exemption system (NISA) that began in January that “Rakuten Securities had the highest market share in number of establishments as of the end of March.” The base of individual investors has expanded in the wake of the new NISA, and purchases are coming in due to expectations that it will lead to boosting the performance of the Rakuten Group, which has Rakuten Securities under its umbrella.

Mitsubishi Corp. --- Drastic decline, net profit guidance for the current fiscal year continues to be viewed negatively
$Mitsubishi(8058.JP)$The sharp decline continued. Financial results were announced during the 2 day trading hours before the consecutive holidays, and the trend softened thereafter, but sales dominance is developing today as well. According to the guidance for the fiscal year ending 25/3, net profit is 950 billion yen, down 1.5% from the previous fiscal year, and annual dividends are 100 yen, an increase of 30 yen from the previous fiscal year. There is also a view that dividends are above expectations, but large transient profits of 220 billion yen, such as profit from revaluation of the convenience store business and profit from the sale of some Australian coal mines, are scheduled to be recorded, and in effect, a drastic decline in profit is expected.