Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Consumption is on the rebound as pandemic restrictions are lifted. Inflation has been higher than the 2% goal, but still not entrenched according to the BoJ. </li>
<li>JGB yields drifted lower despite higher consumer inflation. Lower producer prices may hint that supply issues are normalizing. Stocks are on fire</li>
<li>Bulls adding to Japanese semiconductor equipment names. Global backdrop of AI but Japan also benefits as a "safe haven" destination for new capital investments</li>
</ul>


Consumption is on the rebound as pandemic restrictions are lifted. Inflation has been higher than the 2% goal, but still not entrenched according to the BoJ. 
JGB yields drifted lower despite higher consumer inflation. Lower producer prices may hint that supply issues are normalizing. Stocks are on fire
Bulls adding to Japanese semiconductor equipment names. Global backdrop of AI but Japan also benefits as a "safe haven" destination for new capital investments


Japan Weekly | Nikkei +4.8% to 31 Year High, Advantest, Recruit, Makita

<ul>
<li>OVERSEAS. SPX  up +0.8%WoW but slipped -0.2% Friday as Hawkish Waller came out amid weak US March Retail Sales data;  Musk jump's into Generative AI; Boeing Production Woes</li>
<li>JAPAN.NKY Futs flat vs Cash USDJPY 133.8; Security Concerns ahead of by-elections as PM Kishida smoke Bombed;  Panasonic to build 3rd US batt plant; JT ramps up heated stick products</li>
<li>NUGGET. Elon Musk's aggressive push into Generative AI to rival/beat ChatGPT; A boon for NDVIDIA and by extension, Japan's Advantest(6857)</li>
</ul>


OVERSEAS. SPX  up +0.8%WoW but slipped -0.2% Friday as Hawkish Waller came out amid weak US March Retail Sales data;  Musk jump's into Generative AI; Boeing Production Woes
JAPAN.NKY Futs flat vs Cash USDJPY 133.8; Security Concerns ahead of by-elections as PM Kishida smoke Bombed;  Panasonic to build 3rd US batt plant; JT ramps up heated stick products
NUGGET. Elon Musk's aggressive push into Generative AI to rival/beat ChatGPT; A boon for NDVIDIA and by extension, Japan's Advantest(6857)


Good Morning Japan| Recession Fears Spook Equities;NUGGET- Musk Jumps in AI Race, Boon for Advantest

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

<ul>
<li>SGX has launched futures on the Nikkei Climate 1.5°C Target Index. The index is based on the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei225</a> and uses screens to remove stocks that do not meet certain criteria.</li>
<li>The Nikkei Climate 1.5°C Target Index has a high degree of overlap and correlation and low tracking error with the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a>. </li>
<li>With increased interest in Climate/ESG investing, market participants can use the SGX-listed futures to get the same risk/reward characteristics as the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei225</a> with atleast 50% lower Greenhouse Gas emission intensity.</li>
</ul>


SGX has launched futures on the Nikkei Climate 1.5°C Target Index. The index is based on the Nikkei225 and uses screens to remove stocks that do not meet certain criteria.
The Nikkei Climate 1.5°C Target Index has a high degree of overlap and correlation and low tracking error with the Nikkei 225 (NKY INDEX). 
With increased interest in Climate/ESG investing, market participants can use the SGX-listed futures to get the same risk/reward characteristics as the Nikkei225 with atleast 50% lower Greenhouse Gas emission intensity.


SGX Nikkei 225 Climate PAB Futures: A Cleaner Way to Invest in Japan

<ul>
<li>OVERSEAS. Credit Suisse Rattles Markets; Spurs Equity sell off in flight to Safety trade;   UST 2Yr Yld back below 4%;  Crude Extend losses amid Banks sector worries;</li>
<li>JAPAN. NKY Futs -2.6% vs Cash;  USDJPY 133.4.  NKY Futs surprisingly weak given JP untouched by turmoil; Govt considers Cash transfers to poor households; Inbound recovery Continues</li>
<li>NUGGET.  As Japan Hosts "Defense and Security Equipment International (DSEI) JAPAN"  trade show this week,  it will highlight opportunities for local defense contractors overseas.</li>
</ul>


OVERSEAS. Credit Suisse Rattles Markets; Spurs Equity sell off in flight to Safety trade;   UST 2Yr Yld back below 4%;  Crude Extend losses amid Banks sector worries;
JAPAN. NKY Futs -2.6% vs Cash;  USDJPY 133.4.  NKY Futs surprisingly weak given JP untouched by turmoil; Govt considers Cash transfers to poor households; Inbound recovery Continues
NUGGET.  As Japan Hosts "Defense and Security Equipment International (DSEI) JAPAN"  trade show this week,  it will highlight opportunities for local defense contractors overseas.


Good Morning Japan |Now Its Credit Suisse-Markets Rattled; NUGGET: Fuel for Japan's Defense Stocks

<ul>
<li>AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives</li>
<li>There is a huge TAM, but it can be difficult for equity investors to gain meaningful exposure</li>
<li>We identify 22 Japanese stocks that are engaged in AI. We have two top picks </li>
</ul>


AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives
There is a huge TAM, but it can be difficult for equity investors to gain meaningful exposure
We identify 22 Japanese stocks that are engaged in AI. We have two top picks 


Artificial Intelligence | How to Play the Thematic in Japan

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 Weekly | Nikkei +4.8% to 31 Year High, Advantest, Recruit, Makita

The Nikkei 225 rose 4.8% and the Topix gained 3.1% on the week on signs of progress with the US debt ceiling, corporate updates, and foreign...

Mark Chadwick

Good Morning Japan| Recession Fears Spook Equities;NUGGET- Musk Jumps in AI Race, Boon for Advantest

Expect a broadly quiet start in Japan. Panasonic plans to establish its third US battery plant;. JT increasing its focus on heated stick products;...

Mark Chadwick

SGX Nikkei 225 Climate PAB Futures: A Cleaner Way to Invest in Japan

With increased interest in Climate investing, market participants can use the SGX listed futures to get a similar risk/reward as the Nikkei225 with...

Brian Freitas

Good Morning Japan |Now Its Credit Suisse-Markets Rattled; NUGGET: Fuel for Japan's Defense Stocks

NKY Futs surprisingly weak given JP untouched by turmoil; Govt considers Cash transfers to poor households; Inbound recovery Continues. NUGGET:...

Mark Chadwick

Artificial Intelligence | How to Play the Thematic in Japan

AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives. We identify 22...

Mark Chadwick

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