Tokyo Market Summary: Retrograde semiconductor weakness behind weak rebound from Nikkei Average

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Japan Stocks Overcome Geopolitical Tension and Yen Volatility - Allianz
The record rise in Japanese stocks has lost momentum due to tension in the Middle East situation and exchange rate fluctuations, but strong corporate fundamentals and the long-term outlook for artificial intelligence (AI) are supported, and the recent weakness seems to remain temporary. This is the opinion of Mr. Koji Nakatsuka, Japan Stock Chief Investment Officer (CIO) of Allianz Global Investors, which manages assets of 2.4 trillion dollars worldwide. “If everything is normalized, the Japanese stock market has upward potential until the end of the year. The Nikkei Stock Average may return to its highest level by the end of the year,” he said.

Inflation expectations continue to improve, and the Bank of Japan keeps a close eye on changes in price norms - also boosting interest rate hikes
Inflation expectations for the Japanese economy have continued to improve in response to recent price increases and strong wage increases. With additional interest rate hikes in mind, the Bank of Japan is closely monitoring changes in ways of thinking and practices (norms) based on the assumption that wages and prices will not rise until now.

Gold's historical rise, China plays a leading role - individuals and central banks are paying attention to gold bullion in an uncertain era
Gold, which rose to an all-time high of over 2,400 dollars per ounce this year, is captivating the global market. China, which is the world's largest producer and consumer of gold, is at the forefront of this abnormal price increase. The worsening geopolitical tension, including wars in the Middle East and Ukraine, and the forecast for lower interest rates in the US, are all increasing the value of gold as an investment target.
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Featured stocks
Speculation about early additional interest rate increases in response to Ueda's remarks, which are expensive, such as Mitsubishi UFJ and Dai-ichi Life HD ◇
$Mitsubishi UFJ Financial Group (8306.JP)$、 $Sumitomo Mitsui Financial Group (8316.JP)$Megabanks, etc. are expensive across the board, $Dai-ichi Life Holdings (8750.JP)$、 $T&D Holdings (8795.JP)$Major life insurance stocks, etc., have also clearly indicated that they are oriented towards higher prices. There is a widespread view in the market that additional interest rate hikes by the Bank of Japan may be carried out ahead of schedule. In response to Bank of Japan Governor Ueda's statement in Washington on the weekend 19th that “if the underlying rise in prices continues, the possibility of interest rate hikes will increase greatly,” it has led to speculations of an improvement in the management environment for major financial stocks, and it seems that it is stimulating current stock prices.

Sakura Internet - drastically bought up to 7% higher in the morning and temporarily stalled 10% cheaper
$SAKURA Internet (3778.JP)$is drastically cheaper. It seems that it has suddenly stalled since the start of the rise, and sales have been stagnant. Immediately after the close, there were rough price movements, and at an early stage it rose to 6640 yen (7.3% higher than the previous day). After that, it suddenly stalled, and it took a negative turn in the front. After entering the backstage, sales, which seemed to be weak, accelerated, and temporarily fell to 10% depreciation.

Kokusai E shares have plummeted the most since listing, and shareholders are wary of selling due to the end of the lockup
Semiconductor manufacturing equipment manufacturers at the Tokyo Stock Market on the 22nd $Kokusai Electric (6525.JP)$(Kokusai E) stocks temporarily fell 10%, making it the biggest intraday decline rate since listing in 2023/10. The 180-day lockdown was lifted on the 22nd, and sales of shares held by major shareholders etc. are on alert.

NTT DATA rebelled drastically, and it is reported that it is a strategic partnership agreement with the University of Tsukuba
$NTT Data Group (9613.JP)$There has been a drastic backlash. It was reported in the electronic edition of the Nihon Keizai Shimbun dated 19th that “the University of Tsukuba has signed strategic partnership agreements with NTT DATA and Aioi Nissay Dowa Insurance for human resource development in the mathematics/data science/AI (MDA) fields, respectively,” and it seems that it is viewed as good news.

Sumitomo Metal Mining - 3 days in a row, the rise in non-ferrous metal prices, such as gold extensions, as a material
$Sumitomo Metal Mining (5713.JP)$continued to increase for 3 days. The rise in non-ferrous metal prices is viewed as a material.

Honda is close to an agreement with the Canadian government to manufacture EVs — new equipment in Ontario
$Honda Motor (7267.JP)$We are close to an agreement with the government of the same country regarding the manufacture of electric vehicles (EVs) and the same parts in Ontario, Canada. Multiple stakeholders who are familiar with the situation have made it clear. According to officials, commitments worth several billion dollars by Honda are included in the agreement for new equipment to process cathode active materials, manufacture in-vehicle batteries, and assemble battery-powered vehicles, and it is expected that they will be announced within 1 week.

Mitsui, “Tokyo Dome Relocation” Scenario Seen Through Tsukiji Redevelopment
$Mitsui Fudosan (8801.JP)$On the 22nd, a redevelopment plan for the Tsukiji Market site (Tokyo, central) was announced. The center of the facility, which has a total project cost of 900 billion yen, is equipped with a multipurpose stadium with a capacity of 50,000 people. By taking over the leading relocation destination of the Tokyo Dome, which was acquired in 2021, organic redevelopment became possible in the city center and coastal area. The company's “town planning” is moving to a new stage.

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