Tokyo Market Summary: Nikkei Average Up 907 Yen Possibility of foreign exchange intervention after the BOJ meeting, with preparation in place - BofA

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BOJ's post-meeting exchange intervention potential is set for a breakthrough of 155 yen, BofA says
According to Bank of America Securities, there is a possibility that the Ministry of Finance will intervene in the foreign exchange market if the exchange rate reaches 155 yen per dollar against the yen in response to the Bank of Japan's monetary policy decision meeting. Chief Analyst Shusuke Yamada analyzes that there is a possibility that the conditions for exchange intervention have been prepared from the perspectives of "currency diplomacy," "dollar-yen appreciation," "public opinion," and "volatility," compared to early April when it exceeded 152 yen. In terms of currency diplomacy, it is possible that they sought understanding from the United States and the Group of Seven (G7) countries, and there may have been discussions on cooperation with South Korea, indicating that the hurdle for exchange intervention has been lowered.

Within the Liberal Democratic Party, there are voices saying that additional rate hikes by the Bank of Japan are premature, and it is also seen as difficult within the year.
As the yen depreciation is rapidly progressing, there are voices within the Liberal Democratic Party saying that it is premature to speculate on additional interest rate hikes by the Bank of Japan. With the political schedule of the general election and the dissolution of the House of Representatives that may be discussed in the presidential election and by the end of the year approaching, there is a background of wanting to eliminate materials that could cause anxiety in people's lives as much as possible. Masashi Nishida, a member of the House of Councillors, dismissed the possibility of additional interest rate hikes in July or September as "unthinkable." Small and medium-sized enterprises are being forced to raise wages to make up for labor shortages, and they also pointed out that they do not have the capacity to accept an increase in borrowing burdens due to interest rate hikes.

The real GDP growth rate for fiscal year 2023 is 1.2%, and for fiscal year 2024 it is 0.3%, according to the forecast from the NEEDS.
According to the forecast by the Japan Economic Model of the Economic and Financial Data Service "NEEDS" of the Nihon Keizai Shimbun, which incorporates information on various economic indicators published by April 23, 2024, the forecast for the real GDP growth rate for fiscal year 2023 is 1.2%, and for fiscal year 2024 it is 0.3%.

Hot Stocks
Renesas' stock price is up 10% higher than expected by Texas Instruments' forecast.
$Renesas Electronics (6723.JP)$It surged. It briefly reached a high of 2519 yen and 50 sen, up 10.45%. Similar to Renesas, the major American semiconductor company specializing in automotive semiconductors, Texas Instruments, published its earnings forecast for the April-June 2024 period in the evening of the 23rd, exceeding market expectations. There is strong speculative buying with expectations for good performance in Renesas, which will announce its financial results for the January-March 2024 period on the 25th. $Texas Instruments (TXN.US)$Asahi Kasei temporarily dropped 5%, with reports of a 200 billion yen investment in EV battery plants.

↑ Asahi Kasei, a chemicals company, fell by 5% at one point, with news of a 200 billion yen investment in EV battery plants.
$Asahi Kasei (3407.JP)$Japanese economy news electronic version reported on the 24th that Asahi Kasei will establish a factory in Canada for the main components of batteries for electric vehicles (EV), with an expected investment amount of around 200 billion yen. While future business expansion is expected, concerns about earnings pressure accompanying large-scale capital investment have increased, and the company's stock was sold down to 1,046 yen, a temporary 4.8% decline, in response to the report. Since then, it has shown a sluggish downward trend.

IHI sharply fell in the afternoon session due to tampering with fuel consumption rate measurement data for marine engines.
$IHI (7013.JP)$According to a spokesperson, IHI's subsidiary, IHI Corporation, had recorded different values in the performance report of trial runs after the assembly of marine engines compared to the actually measured fuel consumption rate. NHK had previously reported this based on interviews with relevant parties. The company's PR spokesperson confirmed in a Bloomberg telephone interview that there had been a case reported by NHK regarding its subsidiary, IHI Corporation. The spokesperson further stated that they are working on investigating the facts and identifying the causes, and plan to make a timely disclosure this afternoon.

INPEX and petroleum resources are high, with WTI prices rising to the 83-dollar range.
$Inpex (1605.JP)$や $Japan Petroleum Exploration (1662.JP)$WTI crude oil futures prices on the 23rd rose to $83.36 per barrel, up $1.46 from the previous day. While the conflict between Israel and Iran has reached a stalemate, tensions remain high over the situation in the Palestinian territories, with continued concerns about the Middle East.