Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Oracle order for millions of homes worth of power consumption sends DC and server related higher.</li>
<li>Power semis also up as analysts continue to take a more constructive view.</li>
<li>Gaming names may bounce after yesterdays dip given they are seen as 'tariff proof' ahead of deadline.</li>
</ul>


Oracle order for millions of homes worth of power consumption sends DC and server related higher.
Power semis also up as analysts continue to take a more constructive view.
Gaming names may bounce after yesterdays dip given they are seen as 'tariff proof' ahead of deadline.


Japan Morning Connection: AI and Tech Snaps Back with SOX at Recent Highs

<ul>
<li>Memory names with high exposures to Micon such as Micronics will be back in focus.  </li>
<li>Microsoft paying overs for stable nuclear energy should put the spotlight back onto UPS and help lift Fuji Electric once again. </li>
<li>Capcom's Monster Hunter Wilds looks fully priced and with the TGS about to come and go this this weekend, further catalysts are lacking with the stock close to ATH. </li>
</ul>


Memory names with high exposures to Micon such as Micronics will be back in focus.  
Microsoft paying overs for stable nuclear energy should put the spotlight back onto UPS and help lift Fuji Electric once again. 
Capcom's Monster Hunter Wilds looks fully priced and with the TGS about to come and go this this weekend, further catalysts are lacking with the stock close to ATH. 


Japan Morning Connection: Memory Related in Focus After Knock-Out Numbers for Micron.

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 (NKY INDEX)</a> September rebalance ends in 4 weeks. There could be one outright change and one or two others driven by sector balance.</li>
<li>There will be passive buying in <a href="https://www.smartkarma.com/entities/baycurrent-consulting-inc" target="_blank" data-smartkarma-citation="entities:25985:1" rel="noopener">BayCurrent Consulting</a> as the PAF moves from 0.5 to 1. <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 index weight is below the 10% cap for now. </li>
<li>
<a href="https://www.smartkarma.com/entities/rohm-co-ltd" target="_blank" data-smartkarma-citation="entities:2953:1" rel="noopener">ROHM Co Ltd (6963 JP)</a> replaces <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> later this week and there will be a lot of focus on those names.</li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) September rebalance ends in 4 weeks. There could be one outright change and one or two others driven by sector balance.
There will be passive buying in BayCurrent Consulting as the PAF moves from 0.5 to 1. Fast Retailing (9983 JP)'s index weight is below the 10% cap for now. 

ROHM Co Ltd (6963 JP) replaces NTT Data Corp (9613 JP) later this week and there will be a lot of focus on those names.


Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We discussed in last week's June 19 report how bullish price and RS trends on Israel's TA-125 was our tell that global equities were looking past Israel-Iran tensions.</li>
<li>Now completely in the rear-view mirror.  We also discussed how we were expecting short-term support on ACWI-US at $123-$123.50 (6.5-month base support), and ACWI-US bottomed at $123.20 on Monday.</li>
<li>As a result, we remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).</li>
</ul>


We discussed in last week's June 19 report how bullish price and RS trends on Israel's TA-125 was our tell that global equities were looking past Israel-Iran tensions.
Now completely in the rear-view mirror.  We also discussed how we were expecting short-term support on ACWI-US at $123-$123.50 (6.5-month base support), and ACWI-US bottomed at $123.20 on Monday.
As a result, we remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).


Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>I published a Sep25 Nikkei 225 prediction list last Wednesday. By Friday, we had a new paradigm due to an ad hoc change. That new paradigm informs the September selection. </li>
<li>As it is, I expect one (1) ADD (<a href="https://www.smartkarma.com/entities/shift-inc" target="_blank" data-smartkarma-citation="entities:7266:1" rel="noopener">Shift Inc (3697 JP)</a>) and one (1) DELETE (<a href="https://www.smartkarma.com/entities/tokuyama-corp" target="_blank" data-smartkarma-citation="entities:14781:1" rel="noopener">Tokuyama Corp (4043 JP)</a>) - a prediction which change on a corporate announcement.</li>
<li>My confidence on the ADD is a little lower due to the implications of the choice of Rohm. And the interesting ECM trade for September remains Sony Financial. </li>
</ul>


I published a Sep25 Nikkei 225 prediction list last Wednesday. By Friday, we had a new paradigm due to an ad hoc change. That new paradigm informs the September selection. 
As it is, I expect one (1) ADD (Shift Inc (3697 JP)) and one (1) DELETE (Tokuyama Corp (4043 JP)) - a prediction which change on a corporate announcement.
My confidence on the ADD is a little lower due to the implications of the choice of Rohm. And the interesting ECM trade for September remains Sony Financial. 


[Quiddity Index] Nikkei 225 Sep25 Rebal: One ADD/DEL, Less Certain Than Before

Japan

CAPCOM CO., LTD. develops consumer video game software.  The Company also develops, manufactures, markets, and leases arcade game machines.  Capcom also operates amusement facilities.

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Capcom Co Ltd (9697 JP)

Japan Morning Connection: AI and Tech Snaps Back with SOX at Recent Highs

DC and server-related stocks boosted by Oracle's deal, while power semiconductors rise with positive outlook. Gaming stocks may rebound after a...

Andrew Jackson

Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes

Rohm replace NTT Data later this week. There could be 1, maybe 2, changes in Sep. Baycurrent's PAF increases, Fast Retailing's CPAF should stay the...

Brian Freitas

Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding

Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding on $ACWI ($123-123.50), $EEM ($46)

Vermilion Research

[Quiddity Index] Nikkei 225 Sep25 Rebal: One ADD/DEL, Less Certain Than Before

The early Nikkei 225 replacement action for NTT Data introduced a new paradigm for cash takeovers and set a limit for float. That makes the Sep...

Travis Lundy

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Japan Morning Connection: AI and Tech Snaps Back with SOX at Recent Highs

DC and server-related stocks boosted by Oracle's deal, while power semiconductors rise with positive outlook. Gaming stocks may rebound after a...

Andrew Jackson

Japan Morning Connection: Memory Related in Focus After Knock-Out Numbers for Micron.

Memory back in focus thanks to Micron numbers showing there is plenty of AI runway left, while Fuji Electric and Kansai Electric may see renewed...

Andrew Jackson

Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes

Rohm replace NTT Data later this week. There could be 1, maybe 2, changes in Sep. Baycurrent's PAF increases, Fast Retailing's CPAF should stay the...

Brian Freitas

Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding

Downgrading Germany and Ireland; Global Technology Still Leading; Crucial Base Supports Holding on $ACWI ($123-123.50), $EEM ($46)

Vermilion Research

[Quiddity Index] Nikkei 225 Sep25 Rebal: One ADD/DEL, Less Certain Than Before

The early Nikkei 225 replacement action for NTT Data introduced a new paradigm for cash takeovers and set a limit for float. That makes the Sep...

Travis Lundy