Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  SPX resumes rally as Powell Speech affirms 5% Peak rates;   Beta dominates as Energy and Tech lead; Oil rebound as EIA sees higher Oil +  Saudis lift prices</li>
<li>JAPAN.  NKY Futs -0.1% (flat) vs Cash;  Inbound headwinds as China excludes Japan from Group tours;  Son skips Softbank brief in wake of Vision fund disaster; Nintendo/Switch - its Over!</li>
<li>DAILY NUGGETS. Nintendo - Game Over. Is our view.  The Switch is getting old and we are past the peak..</li>
</ul>


OVERSEAS.  SPX resumes rally as Powell Speech affirms 5% Peak rates;   Beta dominates as Energy and Tech lead; Oil rebound as EIA sees higher Oil +  Saudis lift prices
JAPAN.  NKY Futs -0.1% (flat) vs Cash;  Inbound headwinds as China excludes Japan from Group tours;  Son skips Softbank brief in wake of Vision fund disaster; Nintendo/Switch - its Over!
DAILY NUGGETS. Nintendo - Game Over. Is our view.  The Switch is getting old and we are past the peak..


Good Morning Japan |Peak Rates Still 5% Post Powell - Beta Roars Back; Inbound-China Excludes Japan

<ul>
<li>Japanese stocks shrugged off weakness in overseas markets to close up for the second week running</li>
<li>All eyes were on the BOJ, which did absolutely nothing.  The Yield Curve will be defended at all costs</li>
<li>Stocks on our watchlist returned about +1.5% this week. They have been consolidating for the past 6 months</li>
</ul>


Japanese stocks shrugged off weakness in overseas markets to close up for the second week running
All eyes were on the BOJ, which did absolutely nothing.  The Yield Curve will be defended at all costs
Stocks on our watchlist returned about +1.5% this week. They have been consolidating for the past 6 months


<ul>
<li>The Nikkei rose 4.5% over the week as the yen weakened slightly to 145 yen versus the dollar</li>
<li>The buoyant mood may not last after U.S. stocks closed sharply lower on Friday after a strong jobs report</li>
<li>The US commerce department announced restrictions to bar US companies from exporting critical SPE tools to China</li>
</ul>


The Nikkei rose 4.5% over the week as the yen weakened slightly to 145 yen versus the dollar
The buoyant mood may not last after U.S. stocks closed sharply lower on Friday after a strong jobs report
The US commerce department announced restrictions to bar US companies from exporting critical SPE tools to China


<ul>
<li>The Nikkei was up +2.15% over the past week (-2% YTD): the yen was 1.2% weaker at ¥142/$</li>
<li>The news was focused on the sharp drop in the yen with even the BoJ Governor Kuroda noting some undesirable effects</li>
<li>The proportion of female directors rose to 9%, a slight increase over 7.4% in the previous year</li>
</ul>


The Nikkei was up +2.15% over the past week (-2% YTD): the yen was 1.2% weaker at ¥142/$
The news was focused on the sharp drop in the yen with even the BoJ Governor Kuroda noting some undesirable effects
The proportion of female directors rose to 9%, a slight increase over 7.4% in the previous year


Japan Weekly | Renova, Mitsubishi Motors, Mercari

Telco/Internet specialist

Kirk Boodry

Redex Research

<ul>
<li>Within our coverage, NTT and Softbank Group are the main beneficiaries of a stronger dollar. NTT benefits operationally as it generates c. $18-20bn in overseas revenue</li>
<li>Softbank benefits in valuation terms as c. 90% of the portfolio is dollar-linked. The forex move from ¥115 to ¥144 boosts asset value by ¥2.4trn or  ¥1,500/share (net)</li>
<li>ECommerce play Mercari gets 30% of revenue from the US but that segment is losing money and a stronger dollar expands that on a yen P&amp;L</li>
</ul>


Within our coverage, NTT and Softbank Group are the main beneficiaries of a stronger dollar. NTT benefits operationally as it generates c. $18-20bn in overseas revenue
Softbank benefits in valuation terms as c. 90% of the portfolio is dollar-linked. The forex move from ¥115 to ¥144 boosts asset value by ¥2.4trn or  ¥1,500/share (net)
ECommerce play Mercari gets 30% of revenue from the US but that segment is losing money and a stronger dollar expands that on a yen P&amp;L


Japan Telecoms - Strong Dollar a Boon for NTT and Softbank Group, Bad for Mercari

Japan

Mercari, Inc. operates as an electronic commercial company. The Company offers electronic commercial software, operation management, marketing planning, and other marketplace services. Mercari serves customers worldwide.

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Mercari (4385 JP)

Good Morning Japan |Peak Rates Still 5% Post Powell - Beta Roars Back; Inbound-China Excludes Japan

NKY indicated flate; Inbound headwinds as China exludes Japan from Group tours; Son skips Softbank brief in wake of Vision fund disaster; Nintendo...

Mark Chadwick

Japan Weekly | BayCurrent, Mercari

The Japan Weekly looks at the events that have been impacting the Japanese market over the past week and the stocks that have moved the markets.

Mark Chadwick

Japan Weekly | Mercari, Softbank

Japanese stocks were in buoyant mood last week. Risk-on. That will probably not last after the US jobs report sparked turmoil on Friday. Sports Day...

Mark Chadwick

Japan Weekly | Renova, Mitsubishi Motors, Mercari

We take a look at the stocks that have performed well or poorly over the past week in the Japanese equity market. This week Renova was the star...

Mark Chadwick

Japan Telecoms - Strong Dollar a Boon for NTT and Softbank Group, Bad for Mercari

We have discussed strong dollar beneficiaries before but thought it worth revisiting with the dollar at a 24-year high. In short: better NTT...

Kirk Boodry

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