Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Tech sell-off sets a weak tone for Japanese SPE after some big gains yesterday.</li>
<li>Good set of numbers for Advantest should buck this trend, although upside may be capped.</li>
<li>Is the big growth story for Hitachi, now +700% off its CV-19 lows finally over after its earnings and guidance miss?</li>
</ul>


Tech sell-off sets a weak tone for Japanese SPE after some big gains yesterday.
Good set of numbers for Advantest should buck this trend, although upside may be capped.
Is the big growth story for Hitachi, now +700% off its CV-19 lows finally over after its earnings and guidance miss?


Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

<ul>
<li>Muted trading in the US ahead of a big week of earnings.</li>
<li>Olympus facing reputational damage with its CEO resigning on illegal drug allegations.</li>
<li>Does the LDP's disastrous election result herald a return to Japan's 2006-2012 era?</li>
</ul>


Muted trading in the US ahead of a big week of earnings.
Olympus facing reputational damage with its CEO resigning on illegal drug allegations.
Does the LDP's disastrous election result herald a return to Japan's 2006-2012 era?


Japan Morning Connection: Olympus Facing Reputational Damage

Derivatives and Quantitative Strategist

Gaudenz Schneider

Quantitative Analysis

<ul>
<li>The five-year data on past Bank of Japan interest rate decisions suggests that realized <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> volatility tends to slightly and temporarily increase after a rate decision announcement.</li>
<li>Investors might make use of this observation by adjusting the timing of directional trades around rate decisions or by using options.</li>
<li>With monetary policy expected to become more active in the next months, its effect on volatility might grow.</li>
</ul>


The five-year data on past Bank of Japan interest rate decisions suggests that realized Nikkei 225 (NKY INDEX) volatility tends to slightly and temporarily increase after a rate decision announcement.
Investors might make use of this observation by adjusting the timing of directional trades around rate decisions or by using options.
With monetary policy expected to become more active in the next months, its effect on volatility might grow.


EQD | Nikkei 225 Realized Volatility Following Rate Decisions

<ul>
<li>Markets back to risk-on after big earnings from Tesla, Lam, and UPS.</li>
<li>Strong US new home sales data and good earnings for CBRE sets a positive tone for R/E.</li>
<li>Good Siltronics numbers yesterday a positive read for wafer makers Sumco and Shin-Etsu ahead of numbers today.</li>
</ul>


Markets back to risk-on after big earnings from Tesla, Lam, and UPS.
Strong US new home sales data and good earnings for CBRE sets a positive tone for R/E.
Good Siltronics numbers yesterday a positive read for wafer makers Sumco and Shin-Etsu ahead of numbers today.


Japan Morning Connection: Risk-On to Finish the Week

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Post-Close on the 5th business day of October every year, the TSE announces the Free Float Weight review for all stocks where the FY ends in the Jan-March quarter.</li>
<li>Yesterday saw 210 decent changes to FFW (more up than down). There are still 400+ Phased Weight Reductions, 3 new adds (3663, 3993, 9341), and some share cancellation-based share-count reductions.</li>
<li>It turns out there is a LOT to trade. I see ¥2trln one-way (¥2trln net to buy on 245 names, and ¥2trln to sell on the other nearly 1,900 names). </li>
</ul>


Post-Close on the 5th business day of October every year, the TSE announces the Free Float Weight review for all stocks where the FY ends in the Jan-March quarter.
Yesterday saw 210 decent changes to FFW (more up than down). There are still 400+ Phased Weight Reductions, 3 new adds (3663, 3993, 9341), and some share cancellation-based share-count reductions.
It turns out there is a LOT to trade. I see ¥2trln one-way (¥2trln net to buy on 245 names, and ¥2trln to sell on the other nearly 1,900 names). 


The TOPIX October FFW Trade - BIG Numbers

Japan

ADVANTEST CORPORATION produces semiconductor testing devices and electronic measuring instruments.  The Company's products include large-scale integration (LSI) test systems, memory test systems, dynamic test handlers, network analyzers, electronic meters, optical testing devices, and signal sources.

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Advantest Corp (6857 JP)

Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Andrew Jackson

Japan Morning Connection: Olympus Facing Reputational Damage

Muted in the US ahead of a big week of earnings. Olympus faces reputational damage with CEO resigning on illegal drug allegations. Will the LDP...

Andrew Jackson

EQD | Nikkei 225 Realized Volatility Following Rate Decisions

Data shows that Nikkei 225 volatility tends to rise after Bank of Japan rate decisions, suggesting potential trading strategies for investors as...

Gaudenz Schneider

Japan Morning Connection: Risk-On to Finish the Week

Markets risk on after big earnings from Tesla, Lam and UPS. Positive tone for R/E after strong US home sales data and for wafer makers such as...

Andrew Jackson

The TOPIX October FFW Trade - BIG Numbers

The TOPIX Buy/Sell Trade was doing OK through mid-week last week. Then on the 17th it fell hard. That was the day after 'uncertainty" on TCM (570...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

​Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Andrew Jackson

Japan Morning Connection: Olympus Facing Reputational Damage

Muted in the US ahead of a big week of earnings. Olympus faces reputational damage with CEO resigning on illegal drug allegations. Will the LDP...

Andrew Jackson

EQD | Nikkei 225 Realized Volatility Following Rate Decisions

​Data shows that Nikkei 225 volatility tends to rise after Bank of Japan rate decisions, suggesting potential trading strategies for investors as...

Gaudenz Schneider

Japan Morning Connection: Risk-On to Finish the Week

Markets risk on after big earnings from Tesla, Lam and UPS. Positive tone for R/E after strong US home sales data and for wafer makers such as...

Andrew Jackson

The TOPIX October FFW Trade - BIG Numbers

The TOPIX Buy/Sell Trade was doing OK through mid-week last week. Then on the 17th it fell hard. That was the day after 'uncertainty" on TCM (570...

Travis Lundy

Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Data shows that Nikkei 225 volatility tends to rise after Bank of Japan rate decisions, suggesting potential trading strategies for investors as...