Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>NVDA saving tech from a bigger pullback as the market takes profits ahead of earnings.</li>
<li>Rates higher and causing a pullback in R/E related and the yen is approaching Y151.</li>
<li>Disco's better-than-expected outlook for HBM related equipment should leave more room for upside.</li>
</ul>


NVDA saving tech from a bigger pullback as the market takes profits ahead of earnings.
Rates higher and causing a pullback in R/E related and the yen is approaching Y151.
Disco's better-than-expected outlook for HBM related equipment should leave more room for upside.


Japan Morning Connection: Potential for Disco to Push Higher with Positive HBM Outlook

<ul>
<li>TSMC gains largely failed to buoy the US SPE names, with many continuing to drop setting a similar tone for Japan peers.</li>
<li>Travelers +9% on better than expected earnings and less Hurricane impact will continue to help the JP non-life.</li>
<li>Sumitomo Forestry has corrected significantly and now looks ready to rebound and join its US peers hovering close to their all-time highs.</li>
</ul>


TSMC gains largely failed to buoy the US SPE names, with many continuing to drop setting a similar tone for Japan peers.
Travelers +9% on better than expected earnings and less Hurricane impact will continue to help the JP non-life.
Sumitomo Forestry has corrected significantly and now looks ready to rebound and join its US peers hovering close to their all-time highs.


Japan Morning Connection: Mixed Reaction to TSMC Gains, Sumitomo Forestry Ready to Rebound

<ul>
<li>Japan to follow US higher on the much better-than-expected jobs report and the yen back to 148.9</li>
<li>Exporters including the Autos with high US exposures as well as Inbound related laggards such as Isetan Mitsukoshi and Shiseido/Kose should see sentiment improve</li>
<li>The strong US data should also help the JP Shippers rebound after dropping -8.2% on Fri on the end of the US port workers strike</li>
</ul>


Japan to follow US higher on the much better-than-expected jobs report and the yen back to 148.9
Exporters including the Autos with high US exposures as well as Inbound related laggards such as Isetan Mitsukoshi and Shiseido/Kose should see sentiment improve
The strong US data should also help the JP Shippers rebound after dropping -8.2% on Fri on the end of the US port workers strike


Japan Morning Connection: Expect Rebound After Strong US Job Data

<ul>
<li>Plenty of Ishiba trades to pickup this morning after yesterday's panic.</li>
<li>Defence related saw some initial profit taking after pricing in some gains, but KHI and NEC remain attractive on the long side.</li>
<li>Selective Inbound tourism, domestic revitalization, and China plays should snap back fairly quickly with Ishiba unlikely to upset voters ahead of elections.</li>
</ul>


Plenty of Ishiba trades to pickup this morning after yesterday's panic.
Defence related saw some initial profit taking after pricing in some gains, but KHI and NEC remain attractive on the long side.
Selective Inbound tourism, domestic revitalization, and China plays should snap back fairly quickly with Ishiba unlikely to upset voters ahead of elections.


Japan Morning Connection: Selective Rebound Expected After Yesterday's Panic

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>BOJ sows confusion with hawkish and dovish statements regarding its tightening policy. On a USD-basis the Japan market failed again to break its long-term resistance indicating a "Dead Cat Bounce".</li>
<li>Auto and Semiconductor sectors pressured by US trade policies and Trading Companies are affected by JPY strength.  US rejection of <strong><a href="https://www.smartkarma.com/entities/nippon-steel-corporation" target="_blank" data-smartkarma-citation="entities:961:1" rel="noopener">Nippon Steel Corporation (5401 JP)</a></strong>merger affects Japan steel sector.</li>
<li>Higher domestic yields is a catalyst to reverse the large money flows from Japan during the Kuroda years.</li>
</ul>


BOJ sows confusion with hawkish and dovish statements regarding its tightening policy. On a USD-basis the Japan market failed again to break its long-term resistance indicating a "Dead Cat Bounce".
Auto and Semiconductor sectors pressured by US trade policies and Trading Companies are affected by JPY strength.  US rejection of Nippon Steel Corporation (5401 JP)merger affects Japan steel sector.
Higher domestic yields is a catalyst to reverse the large money flows from Japan during the Kuroda years.


JAPAN:  No Lifeguard on Duty, Swim at Your Own Risk

Japan

DISCO CORPORATION manufactures abrasive and precision industrial machinery for cutting and grinding purposes.  The Company's products are applied in the semiconductor, electronics, and construction industries to produce consumer goods such as personal computers, digital cameras, video game systems, and Digital Video Disc (DVD) players.

Price Gauge
52-week Range	0.00 - 0.00
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DISCO Corp (6146 JP)

Japan Morning Connection: Potential for Disco to Push Higher with Positive HBM Outlook

NVDA preventing larger tech pullback as market takes profits ahead of earnings. Higher rates impacting R/E related. Disco's outlook for HBM...

Andrew Jackson

Japan Morning Connection: Mixed Reaction to TSMC Gains, Sumitomo Forestry Ready to Rebound

TSMC gains failed to buoy SPE names. Travelers up 9% on better than expected earnings, continuing to help non-life. Sumitomo Forestry looks ready...

Andrew Jackson

Japan Morning Connection: Expect Rebound After Strong US Job Data

Japan's market is expected to rise following the US jobs report, benefiting exporters and shippers after a recent drop.

Andrew Jackson

Japan Morning Connection: Selective Rebound Expected After Yesterday's Panic

Opportunities in Ishiba trades this morning, particularly in defence-related stocks, inbound tourism, domestic revitalization, and China plays.

Andrew Jackson

JAPAN: No Lifeguard on Duty, Swim at Your Own Risk

BOJ sends mixed signals on its pace of tightening as the JPY strengthens. Auto, semi and trading company sectors continue to be under pressure. A...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Potential for Disco to Push Higher with Positive HBM Outlook

​NVDA preventing larger tech pullback as market takes profits ahead of earnings. Higher rates impacting R/E related. Disco's outlook for HBM...

Andrew Jackson

Japan Morning Connection: Mixed Reaction to TSMC Gains, Sumitomo Forestry Ready to Rebound

​TSMC gains failed to buoy SPE names. Travelers up 9% on better than expected earnings, continuing to help non-life. Sumitomo Forestry looks ready...

Andrew Jackson

Japan Morning Connection: Expect Rebound After Strong US Job Data

​Japan's market is expected to rise following the US jobs report, benefiting exporters and shippers after a recent drop.

Andrew Jackson

Japan Morning Connection: Selective Rebound Expected After Yesterday's Panic

Opportunities in Ishiba trades this morning, particularly in defence-related stocks, inbound tourism, domestic revitalization, and China plays.

Andrew Jackson

JAPAN: No Lifeguard on Duty, Swim at Your Own Risk

BOJ sends mixed signals on its pace of tightening as the JPY strengthens. Auto, semi and trading company sectors continue to be under pressure. A...

David Mudd

NVDA preventing larger tech pullback as market takes profits ahead of earnings. Higher rates impacting R/E related. Disco's outlook for HBM...

TSMC gains failed to buoy SPE names. Travelers up 9% on better than expected earnings, continuing to help non-life. Sumitomo Forestry looks ready...

Japan's market is expected to rise following the US jobs report, benefiting exporters and shippers after a recent drop.