Tokyo Market Summary: The Nikkei Average rose by 506 yen, surpassing the “bottom of the pot” chart approaching the highest price, and the upward momentum

Top news
High dividend stocks rank high in stock price growth rate, non-life insurance and shipping
With the introduction of the new NISA (Small Investment Tax Exemption System) in 2024/1, attention has been drawn to stocks with high dividend yields among individual investors. When the stock price increase rate from the end of March was investigated for the constituent stocks of the “Nikkei Average High Dividend Stock 50 Index,” general insurance and major shipping companies lined up at the top.

Read the Bank of Japan's “Simultaneous Decision” with yen swap interest rates at a high level for the first time in a month, and yen depreciation
The depreciation of the yen has not stopped in the foreign exchange market, and yen swap interest rates have risen from observations that the Bank of Japan is forced to raise additional interest rates in order to suppress price increases. The one-year yen swap interest rate for the first time in a month, which bond/exchange market participants pay attention to when predicting monetary policy, rose to a high level of 0.6% on the 2nd. Chief Desk Strategist Omori Shoki of the Mizuho Securities Financial Markets Department analyzed that the rise in yen swap interest rates one year ahead is “centered on overseas movements.” In addition to the effects of the depreciation of the yen, I see it as an indication that the possibility of simultaneous decisions on government bond purchase reductions and interest rate increases at the July meeting is not zero.
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The yen exchange rate fell to 161 yen to 83 yen low for the first time in 37 and a half years

Bank of Japan estimates supply and demand gap, negative for 16 consecutive quarters - January-March
On the 3rd, the Bank of Japan announced a trial estimate that the supply-demand gap, which is the difference between the potential supply capacity of the Japanese economy and actual demand, became minus 0.66% in the January-March period. It will be the 16th consecutive quarter that supply has exceeded demand.

Pay attention to the handle
NTT data temporarily declined by 6%, and the company that conveys information on ransomware attacks is confirming details
$NTT Data Group(9613.JP)$The rate of decline exceeded 6% at one point. It was reported in part that the company was the target of a ransomware attack by the RanSomHUB Group. It is said that the group has accessed 230 gigabytes of data and is claiming that it plans to release it within 3 to 4 days. There seems to have been an increase in sales due to concerns about the impact on future business activities.

Renesas continues to increase drastically, and major domestic securities raise target stock prices
$Renesas Electronics(6723.JP)$has continued to increase drastically. The fact that SMBC Nikko Securities continued the investment evaluation “1” on the 2nd and raised the target stock price from 3200 yen to 3700 yen seems to be viewed as good news.
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SoftBank G shares surpass the highest price on a closing price basis
$SoftBank Group(9984.JP)$The stock surpassed the highest price of 1635 yen on a closing price basis recorded on 2021/3/12 against the backdrop of a rapid increase in investment in the AI and semiconductor fields. The company's stock continued to grow for 6 days, adding 1640 yen, 0.9% higher than the previous business day. Kawasaki Asaei, a senior analyst at Iwai Cosmo Securities, pointed out that “the company is expected to increase profits as an investment company” since the Nikkei Average has recovered to 40,000 yen. Also, in September last year, an English semiconductor design company $Arm Holdings(ARM.US)$Since it was listed, it was analyzed that “the fact that semiconductor-related perspectives were added is also behind the rise.”

New banknotes for the first time in 20 years, and the abandoned vending machine JT withdraws
The first new banknote in 20 years was issued on the 3rd. ATMs and ticket vending machines at train stations have almost finished switching to support the new banknotes, responding to the convenience of users. In contrast, vending machines have not progressed in changeover. According to industry group surveys, responses are limited to about 30%. Cigarettes $Japan Tobacco(2914.JP)$Vending machines are about to disappear due to the issuance of new banknotes, such as (JT) withdrawing from directly managed businesses. As fixed costs for beverages remain high, each company is proceeding with the selection of installation locations.
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Panasonic HD stock falls, supplier US Tesla sales are poor
$Panasonic Holdings(6752.JP)$fell for the first time in 5 business days. It added 1294 yen, which was 2.19% lower at one point. Rice, a major electric vehicle (EV) company $Tesla(TSLA.US)$Global sales volume for the 2024/4/6 fiscal year announced on the 2nd decreased compared to the same period last year. The slowdown in EV demand has once again been recognized, and it seems that sales are on PanaHD stock, which supplies batteries to Tesla.

Daikin Daikin's household air conditioner production of 8.83 million units was the highest in fiscal year 24
$Daikin Industries(6367.JP)$The production plan for household room air conditioners for 2024 was announced on the 3rd. The world as a whole has produced a record high of approximately 8.83 million units, a 15% increase from fiscal year 23. It responds to rising demand for air conditioners in emerging countries, such as producing more than 1 million units in India. Global demand cooled down in fiscal year 23, so the number of units produced fell 11% from fiscal year 22 to only 7.69 million units. Global demand will recover in fiscal year 24, and the Indian market is expected to boost unit sales.

Distribution source: Bloomberg, Nihon Keizai Shimbun, MINKABU