Tokyo Market Summary: Nikkei Average rebounds, weak rebound power behind the decline in semiconductor stocks.

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japan stock, overcoming geopolitical tensions and yen volatility - Allianz
The record-breaking rise in Japanese stocks has lost momentum due to tensions in the Middle East and exchange rate fluctuations. However, the steady corporate fundamentals and the long-term outlook for artificial intelligence (AI) are supporting factors, and the recent weakness is expected to be temporary. This is the view of Hiroji Nakatsuka, the Chief Investment Officer (CIO) of Allianz Global Investors, who manages $2.4 trillion in assets worldwide. He said, 'If everything normalizes, there is potential for an upward trend in the Japanese stock market towards the end of the year. The Nikkei Stock Average may return to its highest level by the end of the year.'

The Bank of Japan is closely monitoring the improvement in inflation expectations and changes in the norm of price alterations, which have been influenced by recent price increases and wage growth in the Japanese economy. The Bank of Japan has additional rate hikes in mind and is observing the changes in thinking and practices (norms) that had assumed that wages and prices would not rise.
This year, gold, which has risen to a record high of over $2,400 per ounce, has captivated the global market. China, the world's largest producer and consumer of gold, is at the forefront of this abnormal price increase. The deteriorating geopolitical tensions, including the wars in the Middle East and Ukraine, as well as the anticipated decline in interest rates in the United States, have all increased the value of gold as an investment.

The improvement in inflation expectations and the changes in the norm of price alterations continue to be monitored by the Bank of Japan, taking into account the recent price increases and wage growth in the Japanese economy.
Gold, which has risen to a record high of over $2,400 per ounce this year, has captivated the global market. China, which is both the world's largest producer and consumer of gold, is at the forefront of this extraordinary price increase. The worsening geopolitical tensions, including the wars in the Middle East and Ukraine, as well as the anticipated decline in interest rates in the United States, have all increased the value of gold as an investment for individuals and central banks during this uncertain period.
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Gold is expected to rise to $3000 due to geopolitical risks, leading to demand for "safe assets".

Hot Stocks
Mitsubishi UFJ and Dai-ichi Life Holdings, among others, have high expectations for an early additional rate hike in response to Ueda's remarks.
$Mitsubishi UFJ Financial Group (8306.JP)$、 $Sumitomo Mitsui Financial Group (8316.JP)$Megabanks, among others, are all trading higher. $Dai-ichi Life Holdings (8750.JP)$、 $T&D Holdings (8795.JP)$Large life insurance stocks, among others, are indicating an upward trend. There is a growing market view that the Bank of Japan will carry out an earlier additional rate hike. In response to the comments made by BOJ Governor Ueda on the 19th in Washington, D.C., stating that "if the upward trend in underlying prices continues, the possibility of interest rate hikes will increase significantly", expectations for improvement in the investment environment are leading to a boost in stock prices for major financial stocks.

Sakura Internet - Significant drop in price. Bought up to a 7% increase in the morning and then fell back to a 10% decline at one point.
$SAKURA Internet (3778.JP)$Shares saw a significant decline. After starting to rise sharply, it seems that profit-taking sales are occurring. Immediately after the opening, there was volatile price movement, and it rose to 6,640 yen (7.3% higher than the previous day) at an early stage. After that, it rapidly lost momentum and turned negative in the morning session. In the afternoon session, the profit-taking sales accelerated, and it temporarily fell by 10%.

Cokkai E shares experienced a temporary 10% decline on the Tokyo Stock Exchange on the 22nd, the largest intraday decline since its listing in October 2023. The 180-day lockup period was lifted on the 22nd, and there is caution about the shareholding sales of major shareholders and others.
On the 22nd, a semiconductor manufacturing equipment manufacturer, $Kokusai Electric (6525.JP)$(Cokkai E) shares temporarily fell by 10% on the Tokyo Stock Exchange on the 22nd, marking the largest intraday decline since its listing in October 2023. The 180-day lockup was lifted on the 22nd, and there is caution about the shareholding sales of major shareholders.

NTT Data is making a significant rebound. It was reported that NTT Data and Aioi Nissay Dowa Insurance have entered into a strategic partnership agreement with the University of Tsukuba for talent development in the field of mathematical data science and AI (MDA), as reported in the digital version of the Nihon Keizai Shimbun dated the 19th.
$NTT Data Group (9613.JP)$Sumitomo Metal Mining rises for the third day due to the increase in prices of nonferrous metals such as gold.

Rises for the 3rd day. The rise in nonferrous metal prices is seen as a positive factor.
$Sumitomo Metal Mining (5713.JP)$Continues to rise for 3 days. The rise in the prices of nonferrous metals is being viewed as a positive factor.

Honda is close to an agreement with the Canadian government on EV manufacturing, announcing new facilities in Ontario.
$Honda Motor (7267.JP)$Honda is close to reaching an agreement with the Canadian government on the manufacturing of electric vehicles (EV) and related components in the province of Ontario. According to several sources familiar with the matter, the agreement is expected to include Honda's commitment of billions of dollars for the processing of positive electrode materials, production of car batteries, and assembly of battery-powered vehicles in the new facilities, with an announcement expected within a week.

Mitsui Fudosan's scenario for the Tsukiji redevelopment project reveals the possibility of relocating the Tokyo Dome.
$Mitsui Fudosan (8801.JP)$On the 22nd, Mitsui Fudosan announced a redevelopment plan for the site of the Tsukiji Market in Chuo, Tokyo. At the center of the facility, which has a total project cost of 900 billion yen, there will be a multipurpose stadium with a capacity of 500,000 people. By securing a viable relocation site for the Tokyo Dome, which was acquired in 2021, the company has enabled organic redevelopment in the city center and the waterfront area. The company's urban development is entering a new stage.