Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Lam Research and KLA carrying on from ASML beat earlier in the week: positive for JP SPE.</li>
<li>Intel trading better after hours with earnings not a horrible as feared may help JP suppliers.</li>
<li>IBM beat on its transition to services and AI offerings should help JP IT such as Fujitsu, as well as NEC and NRI who also reported yesterday.</li>
</ul>


Lam Research and KLA carrying on from ASML beat earlier in the week: positive for JP SPE.
Intel trading better after hours with earnings not a horrible as feared may help JP suppliers.
IBM beat on its transition to services and AI offerings should help JP IT such as Fujitsu, as well as NEC and NRI who also reported yesterday.


Japan Morning Connection: Semi Rebound with Good Earnings from Semi-Cap Majors

Equity Derivatives Broker - Delta One Japan, Vantage Capital Markets Japan

François-Xavier Pustoc'h

Equity Derivatives Broker - Delta One Japan

Independent Financial Broker

Vantage Capital Markets Japan

We provide world class financial solutions to our extensive institutional client base including rapidly growing corporations, leading investment banks, commercial banks, asset managers, private equity funds, family offices and hedge funds.

Our services include capital market offerings and placements, wholesale brokerage and execution of cash and derivative products (both listed and OTC) across a range of asset classes.

VCM has offices in London, Hong Kong, Tokyo and Dubai from where we service our global client base. Our strength lies in the experience and quality of our teams, supported by excellent operations and infrastructure.

Event-Driven

<ul>
<li>Rebalancing Candidates ADD: Kokusai Electric Corp (6525.T): High Liquidity Group<br>TOP 75, BayCurrent Inc (6532.T), Shift Inc (3697.T)</li>
<li>Rebalancing Candidates DEL: Mitsubishi Logistics Corp. (9301.T), Okuma Corp.<br>(6103.T), Tokuyama Corp (4043.T)</li>
<li>Capping Ratio: Fast Retailing Co Ltd (9983.T)’s Price Adjustment Factor from 2.7 to<br>2.4</li>
</ul>


Rebalancing Candidates ADD: Kokusai Electric Corp (6525.T): High Liquidity Group TOP 75, BayCurrent Inc (6532.T), Shift Inc (3697.T)
Rebalancing Candidates DEL: Mitsubishi Logistics Corp. (9301.T), Okuma Corp. (6103.T), Tokuyama Corp (4043.T)
Capping Ratio: Fast Retailing Co Ltd (9983.T)’s Price Adjustment Factor from 2.7 to 2.4


Nikkei 225 Stock Average Rebalancing – January 2025

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

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 Index</a> March rebalance ends in 3 weeks. There could be one outright change and one or two others driven by sector balance.</li>
<li>
<a href="https://www.smartkarma.com/entities/shift-inc" target="_blank" data-smartkarma-citation="entities:7266:1" rel="noopener">Shift Inc (3697 JP)</a> will have a 15:1 stock split next week and that puts the stock in the list of potential inclusions over the next couple of rebalances.</li>
<li>The recent drop in <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>'s stock price will lead to a single step drop in the PAF. That means less passive selling and a smaller funding buy.</li>
</ul>


The review period for the Nikkei 225 Index March rebalance ends in 3 weeks. There could be one outright change and one or two others driven by sector balance.

Shift Inc (3697 JP) will have a 15:1 stock split next week and that puts the stock in the list of potential inclusions over the next couple of rebalances.
The recent drop in Fast Retailing (9983 JP)'s stock price will lead to a single step drop in the PAF. That means less passive selling and a smaller funding buy.


Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

<ul>
<li>Softbank pledging $500bn worth of AI investment over the next 4-years will send JP SPE higher.</li>
<li>Plenty of high-quality semi-related names in Japan yet to recover from last years 4Q sell-off.</li>
<li>DR Horton numbers were a beat, but sold off their AM highs despite the weakening yields. Any sell off a buy the dip change for Sumi Forestry.</li>
</ul>


Softbank pledging $500bn worth of AI investment over the next 4-years will send JP SPE higher.
Plenty of high-quality semi-related names in Japan yet to recover from last years 4Q sell-off.
DR Horton numbers were a beat, but sold off their AM highs despite the weakening yields. Any sell off a buy the dip change for Sumi Forestry.


Japan Morning Connection: Trump Opening the Floodgates to AI Investment

<ul>
<li>SPE in Japan was aggressively sold yesterday but moves look excessive</li>
<li>US Homebuilder's gain after KB Homes beat priced in... upside for JP names should continue</li>
<li>Rohm's outlook remains cloudy as SiC prices likely to slide further as new Chinese supply hits the market.</li>
</ul>


SPE in Japan was aggressively sold yesterday but moves look excessive
US Homebuilder's gain after KB Homes beat priced in... upside for JP names should continue
Rohm's outlook remains cloudy as SiC prices likely to slide further as new Chinese supply hits the market.


Japan Morning Connection: Lukewarm Tech Rebound in the US Enough to Pause JP SPE Meltdown?

Japan

IBIDEN CO, LTD. develops, produces, and markets ceramics, housing materials, and electronics.  The Company's products include printed circuit boards (PCB), graphite specialties, integrated circuit (IC) packages, ceramic fibers, melamine decorative high-pressure laminates, and pre-cut structural materials.

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Ibiden Co Ltd (4062 JP)

Japan Morning Connection: Semi Rebound with Good Earnings from Semi-Cap Majors

Positive earnings reports from Lam Research and KLA bode well for JP SPE. Intel earnings better than feared may help JP suppliers. IBM beat may...

Andrew Jackson

Nikkei 225 Stock Average Rebalancing – January 2025

As per the “Periodic Review” conducted twice a year by Nikkei Inc. (Nikkei), the constituents of Nikkei 225 will be reviewed and changed at the end...

Vantage Capital Markets Japan

Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

With 4 days left in the review period, Fast Retailing is now in double capping zone which would require passives to sell 13.3m shares in March. If...

Brian Freitas

Japan Morning Connection: Trump Opening the Floodgates to AI Investment

Softbank's $500bn AI investment pledge to boost JP SPE, high-quality semi-related Japanese names may recover. DR Horton sold off AM highs, may...

Andrew Jackson

Japan Morning Connection: Lukewarm Tech Rebound in the US Enough to Pause JP SPE Meltdown?

Japan SPE sold aggressively, homebuilders should continue to gain after KB Homes' beat, Rohm's outlook cloudy with SiC prices expected to drop with...

Andrew Jackson

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Japan Morning Connection: Semi Rebound with Good Earnings from Semi-Cap Majors

​Positive earnings reports from Lam Research and KLA bode well for JP SPE. Intel earnings better than feared may help JP suppliers. IBM beat may...

Andrew Jackson

Nikkei 225 Stock Average Rebalancing – January 2025

As per the “Periodic Review” conducted twice a year by Nikkei Inc. (Nikkei), the constituents of Nikkei 225 will be reviewed and changed at the end...

Vantage Capital Markets Japan

Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

With 4 days left in the review period, Fast Retailing is now in double capping zone which would require passives to sell 13.3m shares in March. If...

Brian Freitas

Japan Morning Connection: Trump Opening the Floodgates to AI Investment

​Softbank's $500bn AI investment pledge to boost JP SPE, high-quality semi-related Japanese names may recover. DR Horton sold off AM highs, may...

Andrew Jackson

Japan Morning Connection: Lukewarm Tech Rebound in the US Enough to Pause JP SPE Meltdown?

Japan SPE sold aggressively, homebuilders should continue to gain after KB Homes' beat, Rohm's outlook cloudy with SiC prices expected to drop with...

Andrew Jackson

Positive earnings reports from Lam Research and KLA bode well for JP SPE. Intel earnings better than feared may help JP suppliers. IBM beat may...

Softbank's $500bn AI investment pledge to boost JP SPE, high-quality semi-related Japanese names may recover. DR Horton sold off AM highs, may...