Tokyo Market Summary: Nikkei Average rises of 575 yen and Bank of Japan interest rate hikes intersect with corporate financial results

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Update - Bank of Japan raises policy interest rate to 0.25% and decides government bond reduction plan at the same time
The Bank of Japan decided on a policy to raise short-term interest rates to around 0.25% at the monetary policy meeting held on the 31st. Since 2008/12 (around 0.3%) immediately after the Lehman shock, it returned to the level for the first time in 15 years and 7 months. As a general rule, government bond purchases are reduced by about 400 billion yen every quarter. The planned purchase amount is planned to be around 3 trillion yen from January to March '26. The new financial market adjustment policy will be applied from 8/1.
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Semi-major and mid-sized securities accounts with successive increases in profit - investment trust sales lead, an opportunity even if stocks fall
The 2024 April-June (1st quarter) financial results for the main semi-major securities companies were completed on the 31st. Strong investment motivation by individual investors, triggered by the new NISA (Small Investment Tax Exemption System) that began in January, continues, $Okasan Securities Group(8609.JP)$The net profit of the 7 companies, excluding them, increased.

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The rear of Toyota also remained in a negative zone, and there was little response to the Ministry of Land, Transport, and Tourism's “suspension of shipment suspension of 3 models” report
$Toyota Motor(7203.JP)$The backfield is also moving in a negative zone. The electronic edition of the Nihon Keizai Shimbun reported on the afternoon of this day that “it was learned in interviews with related parties on the 31st that the Ministry of Land, Infrastructure, Transport and Tourism has solidified a policy to lift shipment suspension instructions for the 3 models currently produced by Toyota Motor Corporation over the fraud issue of certification 'type designation' necessary for mass production of automobiles.” Prior to this, the Bank of Japan decided to raise additional interest rates at the monetary policy meeting held until the 31st.

Bank stocks such as Mitsubishi UFJ remained strong, and the Bank of Japan decided to raise additional interest rates◇
$Mitsubishi UFJ Financial Group(8306.JP)$Bank stocks, etc., have also been steady in the back market. At the monetary policy meeting held until the 31st, the Bank of Japan decided to raise the policy interest rate, which had been set at 0 to 0.1% until now, to 0.25%. In addition, a plan was also decided to reduce the planned purchase amount of monthly long-term government bonds by about 40 billion yen each quarter as a general rule, and set it to about 3 trillion yen from January to March 2026.

Denso net profit increased 11% to 94.4 billion yen from April to June, and depreciation of yen contributed
$Denso(6902.JP)$In the consolidated financial results (international accounting standards) for the fiscal year ending 2024/4/6 announced on the 31st, net profit was 94.4 billion yen, up 11% from the same period last year. It is a major customer $Toyota Motor(7203.JP)$The effects of production declines, etc. were compensated for by depreciation of the yen and rationalization of exchange rates. However, overseas, it is expected that customer car production will decline in response to China's struggles. Monetary policy changes are expected between Japan and the US as to the exchange rate that boosts profits, and there is a strong sense of uncertainty about the future.
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MOL increased in the backstage, and dividends are expected to increase by 100 yen due to the forecast of a complete final increase in profit for the current fiscal year
$Mitsui O.S.K. Lines(9104.JP)$The increase was extended to the rear. An upward revision of consolidated earnings and dividend forecasts for the fiscal year ending 25/3 was announced at noon on the 31st, and it seems that it was well received. The company increased its sales forecast for the current fiscal year by 15 billion yen to 1,815 billion yen (up 11.5% from the previous fiscal year), and revised its final profit forecast by 120 billion yen to 333 billion yen (up 28.0% from the same period). The final profit is completely reversed from forecasting a decrease in profit and an increase in profit is planned.
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MOL revises current fiscal year's current account upward to a 35% increase in profit, and dividends also increased by 100 yen