Tokyo Market Summary: Nikkei Average up 903 yen, reaching a two-month high. Dollar-yen breaks through 146 yen mark, overseas investors fully factor in Mr. Takamichi's victory.

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[Updated] LDP leadership election to be decided by final vote between Takayuki and Ishiba.
In the first round of voting in the Liberal Democratic Party leadership election held on the 27th, high-ranking officials included Sanae Takaichi, Minister of Economic Security, and Shigeru Ishiba, former Secretary-General of the LDP. Since neither candidate reached a majority, a runoff vote will be held between the two. Nine candidates are running in the LDP leadership election. The first round of voting was conducted by members of the Diet (368 votes) and party members/friends (368 votes). The runoff vote will be held by members of the Diet (368 votes) and local votes (47 votes), and the candidate with the most votes will win. The election results are scheduled to be announced around 3:40 pm on the 27th.
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Yen selling accelerates, overseas players completely factor in Mr. Takamichi's victory Dollar-yen breaks through 146 yen level.

Hot stocks
Megabanks such as Sumitomo Mitsui Financial Group are sluggish, with concerns about Vice President Aso supporting Mr. Takai and the momentum for interest rate hikes slowing down. ◇
$Sumitomo Mitsui Financial Group (8316.JP)$and $Mitsubishi UFJ Financial Group (8306.JP)$、 $Mizuho Financial Group (8411.JP)$Mega banks have been moving weakly. After the Vice President of the Liberal Democratic Party, Taro Aso, solidified his intention to support the Minister of Economic Security, Sanae Takaichi, in the party's leadership election, domestic media have reported one after another since the night of the 26th. Mr. Takaichi has been showing a negative view on the necessity of raising interest rates by the Bank of Japan. If Mr. Takaichi becomes the next leader, the expectation is that the momentum for additional interest rate hikes by the Bank of Japan and the rise in market interest rates will decrease, causing selling pressure on bank stocks.

Toyota's global sales in August decreased by 3.1%, with China and Japan experiencing a 3-month consecutive year-on-year decline.
● $Toyota Motor (7203.JP)$According to data released by Toyota on the 27th, global sales of Toyota alone in August 2024 (including Lexus vehicles) decreased by 3.1% compared to the same month last year, falling below the previous year for the third consecutive month. Global production also fell by 11.2% year-on-year, marking the seventh consecutive month of decline compared to the previous year.
● Looking at sales by region, sales in the competitive Chinese market continued to decline by 13.5%. This had a significant impact on the overall sales decline. Sales were also sluggish in markets such as Thailand and Indonesia, while in Japan, the production stoppage of vehicles subject to certification irregularities affected sales.
In Thailand, where the market is declining, there is a 14.5% decrease, and in Indonesia, there is an 8.5% decrease. Factors such as stricter loan screening are considered to be the reasons.
Production in Japan decreased by 22.2% compared to the same month of the previous year. The production stoppage of vehicles subject to certification fraud has impacted, and the production resumption of "Yaris Cross", "Corolla Fielder", and "Corolla Axio" is scheduled for September 2nd.

INPEX and petroleum resources are sluggish, with US crude oil futures plummeting on reports of increased production in Saudi Arabia ◇
$Inpex (1605.JP)$and $Japan Petroleum Exploration (1662.JP)$It is moving weakly. The electronic version of the British newspaper Financial Times reported on the 26th that Saudi Arabia had withdrawn its unofficial price target of 100 dollars per barrel and was preparing for increased production from December. In response to this, the US crude oil futures market plummeted, with the WTI futures center futures hitting a two-week low. Concerns about deteriorating profitability due to a decline in market prices seem to have led to increased selling in oil-related stocks.

Fanuc and Yasukawa Electric surged significantly, as funds continued to flow in from China's bazooka-like economic stimulus starting point.
$Fanuc (6954.JP)$and $YASKAWA Electric (6506.JP)$There was a significant increase. $OMRON (6645.JP)$Funds continue to flow into machinery stocks, which are susceptible to the impact of China's economic trends. In China, a series of economic stimulus measures have been announced, including additional financial easing and support for the real estate market. According to the state-owned Xinhua News Agency, on the 26th, a meeting of the Central Political Bureau of the Communist Party of China was held, calling for the necessity of policy responses such as lowering the reserve requirement ratio, issuing and effectively utilizing ultra-long-term special national bonds.