Tokyo Market Summary: The sharp decline in the Nikkei Average is a factor affecting the economy and prices, and keeping a close eye on market trends - Bank of Japan Governor

Top news
Yen purchases resume, risk avoidance movements fall below 39,000 yen due to the tense situation in the Middle East　
Risk-averse yen purchases have resumed, and there is a possibility that Iran will attack Israel today as well. The dollar yen has broken below the 151 yen level for the first time in about 2 weeks. Nikkei fell by over 800 yen, breaking the 39,000 yen level since 3/18. Crude oil prices are rising even outside of hours.

A turning point in value stocks, sharp polarization due to shareholder return measures - is sorting accelerated into settlement machines
The differences in approach to “management conscious of capital costs and stock prices,” which the Tokyo Stock Exchange requested from listed companies, are beginning to separate the light and dark of stock price performance. In the announcement of full-year financial results, which will begin in earnest this month, it is anticipated among market participants that responses from the corporate side to requests from the Tokyo Stock Exchange will occur one after another, and there is a possibility that stock price wins and losses will progress further. In particular, value (undervalued) stocks that have been bought up until now in anticipation of expansion of shareholder return measures seem to be a turning point in whether or not steady price movements can continue.

Bank of Japan Governor Ueda “The underlying inflation rate will gradually rise”
Bank of Japan Governor Ueda Kazuo stated at the House of Representatives Finance Committee on the morning of the 5th that “I think the underlying inflation rate (excluding short-term factors) will gradually increase in the future” based on the results of spring labor-management negotiations. It was included in future additional interest rate hikes.
RELATED ARTICLES
Chief Cabinet Secretary Hayashi's monetary policy method “entrust it to the Bank of Japan” in an interview with Governor Ueda

Government bonds held by the Bank of Japan were 589 trillion yen, the largest ever at the end of the last fiscal year
It became known that the balance of government bonds held by the Bank of Japan was over 589 trillion yen as of the end of March, making it the largest ever for the end of the fiscal year. The Bank of Japan changed large-scale monetary easing measures in March, but the focus is on handling government bonds, etc. that are held in large quantities.

Exchange rates are factors affecting the economy and prices, and keep a close eye on market trends - Bank of Japan Governor
Bank of Japan Governor Ueda said on the 5th that in response to the fact that the depreciation level of the yen has been established, exchange rates are an important factor affecting economic prices, and that they will closely monitor exchange market trends and their impact on prices. The Bank of Japan was asked why the depreciation of the yen is progressing despite the fact that interest rate hikes have taken measures that reduce internal and external interest rate differences, and Governor Ueda stated “there is a possibility that various factors, speculations, etc. related to internal and external monetary policies also had an impact.” Regarding the disposal of ETF and J-REIT held, the governor said, “We are not thinking about doing it right away. The idea that “I want to take the time to consider it” was shown once again.
RELATED ARTICLES
Japan's currency authorities, which are poised not to resign from exchange intervention, are the next litmus test for US employment statistics
Minister of Finance “does not eliminate all options” changes to around 151 yen

Business trend index revises 1.2 point downward trend judgment - February
As for the February business trend index (2020 = 100) preliminary report value announced by the Cabinet Office on the 5th, the agreement index showing the current state of the economy fell 1.2 points from the previous month, and deteriorated for 2 consecutive months. The keynote judgment was revised downward to a “downward phase change.”

Prices in the Tokyo crude oil market rose to the 80,000 yen range for the first time in about 5 months in response to the situation in the Middle East
Against the backdrop of the tense situation in the Middle East, futures prices for crude oil produced in the Middle East rose in the Tokyo crude oil market, and futures prices for crude oil, which is the center of transactions, hit the 80,000 yen range per kiloliter for the first time in about 5 months.
RELATED ARTICLES
INPEX -- Crude oil prices continue to rise due to daily high price updates and heightened geopolitical risks
Is there a delay between the Japan-US stock price incident and the reduction in US interest rates with crude oil of 100 dollars

Featured stocks
Nippon Steel argues that Chinese companies are not involved in management decisions - US Steel takeover
$Nippon Steel (5401.JP)$Is on the 5th, a major US steel company $United States Steel (X.US)$In response to the fact that there were voices that viewed the company's Chinese business as a problem in connection with the acquisition plan, the Chinese company where the investment was made refuted that it was not involved in the company's business operations or management decisions in other countries such as the United States.
RELATED ARTICLES
Nippon Steel Proposal, Profits to All Stakeholders Approve US Steel Takeover - US Investment Company

Marubeni is firmly starting commercial operation of the Java 1 gas-fired thermal power plant in Indonesia
$Marubeni (8002.JP)$It's solid in the middle of a general reprieve. On the morning of this day, Indonesian state-owned oil and gas company Pertamina $Sojitz (2768.JP)$It was announced that commercial operation began on March 29 for the Java 1 gas-fired thermal power generation project, which has been promoted in collaboration with others, etc., and it is viewed as good news.

Distributors: Bloomberg, Jiji Press, Nihon Keizai Shimbun, NHK, MINKABU