MUFG Overtakes Toyota for Top Market Cap, Nikkei Falls 1,315 Yen as AI Rally Fades

MUFG Tops Toyota with 42 Trillion Yen Market Value, Nikkei Falls 1,315 Yen Mitsubishi UFJ Financial Group's market capitalization reached 42 trillion yen, surpassing Toyota to claim the top spot, the first time a financial institution has held the top since 1993. The Nikkei average fell 1,315 yen due to Middle East risks and a correction in AI stocks, highlighting a clear shift of funds to megabanks. 1234

June Corporate Goods Prices Rise 7.1%, BOJ to Revise Up Growth Forecast The corporate goods price index for June rose 7.1% year-on-year, exceeding expectations and supporting speculation of BOJ tightening. While the BOJ will revise up its FY2026 growth forecast at its late-July meeting, it is expected to revise down its price outlook to reflect lower crude oil prices. 56

Fast Retailing and Ryohin Keikaku Post Consecutive Record Profits on Strong Overseas Fast Retailing saw its net profit for the nine-month period rise 25.6% thanks to strong overseas Uniqlo sales. Ryohin Keikaku revised up its full-year operating profit forecast to 98 billion yen, and its stock price hit a record high since listing. 789

Government Does Not Expect Change to GPIF Basic Portfolio Despite Domestic Investment Push The government explained that it does not assume changes to the basic portfolio of GPIF in response to Finance Minister Katayama's comments on strengthening domestic investment. The comments were reportedly aimed at calming market turmoil over the government's basic economic and fiscal policy outline. 1011