Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

Hong Kong Exchanges and Clearing / Index Rebalance

Hong Kong Exchanges and Clearing (388 HK)

<ul>
<li>The FRTIB benchmark switch from the EAFE Index to the ACWI IMI ex-USA ex-China ex-Hong Kong Index will result in a round trip trade of around US$56bn.</li>
<li>The changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300</a>, <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500</a>, <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">STAR50</a>, <a href="https://www.smartkarma.com/entities/shanghai-stock-exchange-sse-50-a-share-index" target="_blank" data-smartkarma-citation="entities:31073:1" rel="noopener">SSE50</a> and a bunch of other mainland China indices will be announced after market close on Friday.</li>
<li>Relatively quiet week for ETF flows with no major creations or redemptions during the week.</li>
</ul>


The FRTIB benchmark switch from the EAFE Index to the ACWI IMI ex-USA ex-China ex-Hong Kong Index will result in a round trip trade of around US$56bn.
The changes for the CSI 300, CSI 500, STAR50, SSE50 and a bunch of other mainland China indices will be announced after market close on Friday.
Relatively quiet week for ETF flows with no major creations or redemptions during the week.


Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>SEI, Furukawa and Fujikura, all reporting this week, may see gains with a stronger optical connectivity tape overnight and recent selloff leaving the risk/reward tilted higher into this week's earnings.</li>
<li>QPS, Astroscale and Synspective may see gains tracking Sidus, Redwire and Rocket Lab overnight, though SpaceX's earnings and lockup expiry this week warrant caution.</li>
<li>Fuji Elec and Rohm may see support from Onsemi's beat and raised AI data center sales guidance.</li>
</ul>


SEI, Furukawa and Fujikura, all reporting this week, may see gains with a stronger optical connectivity tape overnight and recent selloff leaving the risk/reward tilted higher into this week's earnings.
QPS, Astroscale and Synspective may see gains tracking Sidus, Redwire and Rocket Lab overnight, though SpaceX's earnings and lockup expiry this week warrant caution.
Fuji Elec and Rohm may see support from Onsemi's beat and raised AI data center sales guidance.


Japan Morning Connection: SEI, Furukawa, Fujikura May See Support as Optical Names Rally Overnight

<ul>
<li>Heavily sold AI plays such as Ibiden, Advantest and Kokusai look likely to continue higher given the more constructive outlook in Iran and lower oil to start.</li>
<li>Amazon's AWS growth beat validates its AI spend, offering a positive read-through for Japan's SPE and semi-caps.</li>
<li>Westinghouse Electric Company applying for an IPO in the US should help put focus and improve valuation clarity for Mitsubishi Heavy Industries and Japan Steel Works.</li>
</ul>


Heavily sold AI plays such as Ibiden, Advantest and Kokusai look likely to continue higher given the more constructive outlook in Iran and lower oil to start.
Amazon's AWS growth beat validates its AI spend, offering a positive read-through for Japan's SPE and semi-caps.
Westinghouse Electric Company applying for an IPO in the US should help put focus and improve valuation clarity for Mitsubishi Heavy Industries and Japan Steel Works.


Japan Morning Connection: Risk-On Sentiment Remains as Trump Holds off on More Attacks

<ul>
<li>Lasertec, TEL, Screen and TOK to benefit from Intel's strong earnings.</li>
<li>Disco's guidance miss may present a chance to buy the dip.</li>
<li>Power-Semi’s may be under the pump after STMicro tanked -17.7% in EU and -18.7% in US trading from earnings disappointment. </li>
</ul>


Lasertec, TEL, Screen and TOK to benefit from Intel's strong earnings.
Disco's guidance miss may present a chance to buy the dip.
Power-Semi’s may be under the pump after STMicro tanked -17.7% in EU and -18.7% in US trading from earnings disappointment. 


Japan Morning Connection: Intel's Big Beat and Capex Guidance Raise Set to Lift JP Suppliers and SPE

<ul>
<li>Can expect more from the likes of Rakus Co Ltd, Shift Inc, NEC Corp and Fujitsu Ltd which all traded well yesterday on the rotation away from frontline AI plays.</li>
<li>It would make sense to see interest in physical AI FA plays such as Yaskawa Electric, Mitsubishi Electric, Keyence Corp and Fanuc Corp as alternative exposure to the AI theme.</li>
<li>The power semis such as Fuji Electric, ROHM Co Ltd and Renesas Electronics should hold up after a strong day for the sector in the US.</li>
</ul>


Can expect more from the likes of Rakus Co Ltd, Shift Inc, NEC Corp and Fujitsu Ltd which all traded well yesterday on the rotation away from frontline AI plays.
It would make sense to see interest in physical AI FA plays such as Yaskawa Electric, Mitsubishi Electric, Keyence Corp and Fanuc Corp as alternative exposure to the AI theme.
The power semis such as Fuji Electric, ROHM Co Ltd and Renesas Electronics should hold up after a strong day for the sector in the US.


Japan Morning Connection: Physical AI FA Plays May Draw Fresh Interest as Alternative AI Exposure

Japan

Renesas Electronics Corporation researches, develops, designs and manufactures electronic components such as semiconductors and integrated devices.

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Renesas Electronics (6723 JP)

Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Japan Morning Connection: SEI, Furukawa, Fujikura May See Support as Optical Names Rally Overnight

SEI, Furukawa, Fujikura may see gains with strong optical connectivity tape and recent selloff. Fuji Elec, Rohm may see support from Onsemi's beat...

Andrew Jackson

Japan Morning Connection: Risk-On Sentiment Remains as Trump Holds off on More Attacks

Heavily sold AI plays such as Ibiden, Advantest and Kokusai, look likely to continue higher despite the missed US tape given the more constructive...

Andrew Jackson

Japan Morning Connection: Intel's Big Beat and Capex Guidance Raise Set to Lift JP Suppliers and SPE

Intel's strong earnings will benefit Lasertec, TEL, Screen, and TOK. Disco's guidance miss could be a buying opportunity. Power-Semi's may face...

Andrew Jackson

Japan Morning Connection: Physical AI FA Plays May Draw Fresh Interest as Alternative AI Exposure

Expect a continuation of the shift away from frontline AI plays. Interest in physical AI FA plays may see an increase as alternative exposure to...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Index Rebalance & ETF Flow Recap: FRTIB, Japan, CSI300, CSI500, STAR50, WuXi XDC, Asahi

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Japan Morning Connection: SEI, Furukawa, Fujikura May See Support as Optical Names Rally Overnight

​SEI, Furukawa, Fujikura may see gains with strong optical connectivity tape and recent selloff. Fuji Elec, Rohm may see support from Onsemi's beat...

Andrew Jackson

Japan Morning Connection: Risk-On Sentiment Remains as Trump Holds off on More Attacks

Heavily sold AI plays such as Ibiden, Advantest and Kokusai, look likely to continue higher despite the missed US tape given the more constructive...

Andrew Jackson

Japan Morning Connection: Intel's Big Beat and Capex Guidance Raise Set to Lift JP Suppliers and SPE

​Intel's strong earnings will benefit Lasertec, TEL, Screen, and TOK. Disco's guidance miss could be a buying opportunity. Power-Semi's may face...

Andrew Jackson

Japan Morning Connection: Physical AI FA Plays May Draw Fresh Interest as Alternative AI Exposure

Expect a continuation of the shift away from frontline AI plays. Interest in physical AI FA plays may see an increase as alternative exposure to...

Andrew Jackson

SEI, Furukawa, Fujikura may see gains with strong optical connectivity tape and recent selloff. Fuji Elec, Rohm may see support from Onsemi's beat...

Intel's strong earnings will benefit Lasertec, TEL, Screen, and TOK. Disco's guidance miss could be a buying opportunity. Power-Semi's may face...