Tokyo market summary: Nikkei average rises by 527 yen, high price update after the bubble for 4 consecutive days, and Japanese stock buying becomes active due to expectations of an “optimal temperature market”

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2-year government bond yields have dropped to zero percent since August last year
The yield on new 2-year government bonds fell to zero percent in the bond market on the 12th. Low level since August 2023. Purchases were made in response to setbacks in the Bank of Japan's observation of the cancellation of the negative interest rate policy.

Mr. Kazeoka of Mizuho Bank “Exploring Room for Increase” in Domestic Long-Term Interest Rates in '24
Since the beginning of the year 2024, the domestic long-term bond exchange rate has remained steady. The yield on new 10-year government bonds, which is an indicator of long-term interest rates, has recently fallen below 0.6%, and it has dropped significantly from last fall's level, which approached 1% of the stock market. Regarding domestic interest rate trends in '24, Director Kazeoka Tomoyuki of the Mizuho Bank Securities Investment Department predicts “developments that basically explore room for growth” based on awareness of interest rate hikes by the Bank of Japan.

Japanese stock buybacks became active due to expectations of an “optimal temperature market,” and flight from sluggish Chinese stocks also revived
There are signs of a revival in the “Japan Buy/China Sale” stock trading which was popular around the beginning of last year. Expectations for a Goldilocks scenario (optimal temperature rate) where the global economy does not overheat too much and does not slow down too much have intensified among investors, and Japanese stocks have skyrocketed in the form of benefiting from it. It is attracting investment money that escapes from Chinese stocks, which continue to be sluggish.

The Bank of Japan's fiscal year 24 price forecast is likely to be revised downward, and the growth rate for fiscal year 23 is also - stakeholders
There is a large possibility that the new consumer prices for 2024 (core CPI excluding fresh food) and economic growth rate forecasts for fiscal year 23, which the Bank of Japan will discuss at this month's monetary policy meeting, will be revised downward. I found out through interviews with multiple stakeholders who are familiar with the situation.

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Crude oil futures prices rose due to US and UK attacks on Houthi bases, including INPEX and strong petroleum resources
$Inpex(1605.JP)$with $Japan Petroleum Exploration(1662.JP)$It is trending with strong points. US President Biden announced on the 11th US time that the US military and the British military attacked the base of the pro-Iranian armed group Houthis in Yemen. In response to this, crude oil futures prices rose due to overtime trading in the US. It seems that INPEX and petroleum resources have made purchases based on speculation of the effect of boosting performance due to the rise in crude oil prices.

Toyota starts engine development project - Chairman says it's not going against the times
$Toyota Motor(7203.JP)$Chairman Toyoda Akio stated on the 12th that engines still have a role as a “realistic means” for decarbonization, and revealed that the company has launched a new project to advance engine development. At the press conference at the world's largest custom car (modified car) exhibition “Tokyo Auto Salon 2024,” which opened on the same day, Mr. Toyota said, “It may sound like engines are going backwards in this era, but that's definitely not the case. It's necessary for the future,” he said.

Mitsubishi Heavy Industries - 9th continuous extension H2A rocket carrying launch information gathering satellite = Nikkei
$Mitsubishi Heavy Industries(7011.JP)$It continued to increase for 9 days. The electronic edition of the Nihon Keizai Shimbun reported at 13:47 on the 12th that the company launched the large rocket “H2A” Unit 48 from the Tanegashima Space Center (Kagoshima Prefecture) on the afternoon of the 12th. It is equipped with Optical Unit 8, the government's information gathering satellite, and is responsible for grasping security information and disaster situations such as North Korean military facilities.　

Advantest gave a bullish evaluation, leading domestic securities raised to investment judgment “A”
$Advantest(6857.JP)$A bullish evaluation has been given. Iwai Cosmo Securities raised the investment decision for the company's stock from “B+” to “A” on the 11th. The target stock price was revised from 4100 yen to 5800 yen. The introduction of generative AI and new GPU products for games became a tailwind, and it was pointed out that the accuracy of SoC (system on chip) tester investment, which is the main cause of the decline in profit this fiscal year, will rise early with advanced process products as a driver.

Nitori HD rebounded, and major domestic securities raised target stock prices
$Nitori Holdings(9843.JP)$There was a backlash. SMBC Nikko Securities raised the target stock price of NITORI HD from 16,800 yen to 18,500 yen on the 11th. The investment evaluation continues at “2.” Due to changes in exchange rate assumptions, the securities raised Nitori HD's operating profit forecast for the fiscal year ending March 25 from 130.6 billion yen to 137.3 billion yen. Discounts granted to the PER (price-earnings ratio) of the Tokyo Stock Exchange retail stock index based on exchange risk were eliminated. It is pointed out that a recovery in monthly sales is the key to a full-scale recovery in stock prices.

7 & iHD --- decline, surprises limited to financial results for the fiscal year ending September-November
$Seven & i Holdings(3382.JP)$is a fall. Financial results for the 3rd quarter were announced the day before, and operating profit for the September-November fiscal year was 168.9 billion yen, up 5.5% from the same period last year, almost at the market consensus level. The full-year forecast of 525 billion yen, a 3.6% increase from the previous fiscal year, remained unchanged, and while domestic convenience stores increased, it seems that overseas convenience stores were also reduced. While concerns about the future of the US convenience store business and environmental deterioration have not been wiped away, it seems that cash exchange sales are dominant in response to poor surprise financial results.

SBI falls, and it is conveyed that the Financial Services Agency has ordered the suspension of some operations due to IPO stock price manipulation
$SBI Holdings(8473.JP)$has fallen. The electronic edition of the Nihon Keizai Shimbun reported after the end of the transaction on the 11th that “the Financial Services Agency soon solidified a policy of issuing a partial business suspension order to SBI Securities, the largest internet securities company, for a certain period of time, for manipulating stock prices of initial public offering (IPO) stocks that served as the main secretary.” Sales disgusted by reports swelled at SBI, which has the securities under its umbrella.

Nippon Steel to change president after announcing US Steel acquisition plan
$Nippon Steel(5401.JP)$It was announced that the president will be replaced in April, and President Eiji Hashimoto will be promoted to chairman, and Vice President Imai Tadashi will be promoted to president. The company announced plans to acquire major American steel manufacturers in December, and aims to reorganize the Japanese and US steel industries with a new management system.

Distributor: FISCO, Nihon Keizai Shimbun, Bloomberg, Traders Web