Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Huge gains for JP names with EU exposure yesterday looks set to continue as markets rotate out of AI plays.</li>
<li>Sanken Electric went limit up on the news of ON Semi's bid for Allegro, although ALGM trading very wide overnight.</li>
<li>EU mania should be enough to reboot Daikin's heat pump catalyst off stone sold levels.</li>
</ul>


Huge gains for JP names with EU exposure yesterday looks set to continue as markets rotate out of AI plays.
Sanken Electric went limit up on the news of ON Semi's bid for Allegro, although ALGM trading very wide overnight.
EU mania should be enough to reboot Daikin's heat pump catalyst off stone sold levels.


Japan Morning Connection: Tech Out, All Things EU In

Japan Specialist

Mark Chadwick

<ul>
<li>The Nikkei and Topix indexes advanced 1.36% and 2.11%, respectively, for the week.</li>
<li>Fujikura (5803): +18% - The Nikkei's reported $2.9bn Microsoft data center investment in Japan fuels optimism for fiber optic cable companies like Fujikura</li>
<li>Japan Steel Works (5631): +14% - JSW's shares continue their upward trend, fueled by optimism surrounding nuclear power and defense spending</li>
</ul>


The Nikkei and Topix indexes advanced 1.36% and 2.11%, respectively, for the week.
Fujikura (5803): +18% - The Nikkei's reported $2.9bn Microsoft data center investment in Japan fuels optimism for fiber optic cable companies like Fujikura
Japan Steel Works (5631): +14% - JSW's shares continue their upward trend, fueled by optimism surrounding nuclear power and defense spending


Japan Weekly | Fujikura, Monotaro, Japan Steel Works

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

TSE Tokyo Price Index TOPIX / Technical Analysis

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE vs. EM ratio. The U.S. dollar (DXY) is currently trading near support within the 16-17 month uptrend channel. Technicals suggest the most likely scenario is for the DXY uptrend to continue and for support to hold -- which would likely result in EAFE reasserting as leadership.  In this publication we highlight attractive investment themes and individual ideas across developed markets, with special attention given to Japan, Germany, Sweden, Italy, Spain, and Switzerland.

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE vs. EM ratio. The U.S. dollar (DXY) is currently trading near support within the 16-17 month uptrend channel. Technicals suggest the most likely scenario is for the DXY uptrend to continue and for support to hold -- which would likely result in EAFE reasserting as leadership.  In this publication we highlight attractive investment themes and individual ideas across developed markets, with special attention given to Japan, Germany, Sweden, Italy, Spain, and Switzerland.

Developed Markets Strategy: Stick with Japan

Multi-asset Macro/Emerging Markets Strategist

Virgil Fernandez Esguerra

Our guide to this week’s global macro risk events and trading opportunities.<ul class="">
<li>
This week in trade ideas: Go strategic long Norwegian Krone vs EUR and Saudi stocks. Stay short Italian stocks and bonds vs Stoxx 600 and Bunds. Consider fading Trump steel tariff news via relative value short US steel names vs Japanese peers. Stay strategic short Swedish Krona vs EUR. We stay constructive on JPY.</li>
<li>
Monday: Markets digest Italy vote/Germany SPD referendum, Trump tariffs on steel. Also: Australia MI CPI…</li>
</ul>

Our guide to this week’s global macro risk events and trading opportunities.

This week in trade ideas: Go strategic long Norwegian Krone vs EUR and Saudi stocks. Stay short Italian stocks and bonds vs Stoxx 600 and Bunds. Consider fading Trump steel tariff news via relative value short US steel names vs Japanese peers. Stay strategic short Swedish Krona vs EUR. We stay constructive on JPY.

Monday: Markets digest Italy vote/Germany SPD referendum, Trump tariffs on steel. Also: Australia MI CPI…


Week Ahead in Global Macro: US NFP, Tariffs, ECB, BOJ, RBA, China NPC/CPI/Trade, BOC, BNM

Doing bespoke work since 2002....., Custom Products Group

Patrick Hansen

Doing bespoke work since 2002.....

Custom Products Group

Custom Products was started 14 years ago at Lehman Brothers by current co-founder Patrick Hansen, CFA. After 3 years at Lehman, Patrick moved the team to Macquarie Securities where Simon Rigney (co-founder) joined. 3 years ago we took Custom Products independent. 

Our core strength can be summed up three words. 1- Customization - we have very little off the shelf products and most work is done on a one on one bespoke basis. 2- Speed - We pride ourselves in our ability to get requests back to the client very quickly. 3- Confidentiality - We do not redistribute. There is no grace period where we wait a week and then mass blast. Any request stops with that client.

With a good portion of Japanese companies having already announced 1H results, we looked at the names that are well positioned for the second half. Names that could potentially beat full-year estimates. We basically screened for names that have already achieved greater than 60% of full-year consensus OP estimates and have also increased full-year Company OP guidance in the last month. <h2>Screen Criteria</h2><ol>
<li>Mkt-cap above ¥50bn</li>
<li>Fiscal year ending on March 31</li>
<li>Greater than 60% of full-year OP consensus is…</li>
</ol>

With a good portion of Japanese companies having already announced 1H results, we looked at the names that are well positioned for the second half. Names that could potentially beat full-year estimates. We basically screened for names that have already achieved greater than 60% of full-year consensus OP estimates and have also increased full-year Company OP guidance in the last month. Screen Criteria
Mkt-cap above ¥50bn
Fiscal year ending on March 31
Greater than 60% of full-year OP consensus is…


Names Potentially Well Positioned to Beat Year-End Estimates

Japan

The Japan Steel Works Ltd produces machinery for casts, forged steel, and plastics.  The Company, serving both the public and private sectors, manufactures industrial equipment utilized in facilities such as oil refineries, manufacturing plants, and petrochemical plants.

Price Gauge
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Japan Steel Works (5631 JP)

Japan Morning Connection: Tech Out, All Things EU In

Gains for JP names with EU exposure as markets shift away from AI plays. Sanken Electric limit up on ON Semi's bid for Allegro. Daikin's heat pump...

Andrew Jackson

Japan Weekly | Fujikura, Monotaro, Japan Steel Works

Japanese stock indexes rose last week, with Fujikura and Japan Steel Works seeing significant gains on positive news in tech and defense sectors.

Mark Chadwick

Developed Markets Strategy: Stick with Japan

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE...

Vermilion Research

Week Ahead in Global Macro: US NFP, Tariffs, ECB, BOJ, RBA, China NPC/CPI/Trade, BOC, BNM

Our guide to this week’s global macro risk events and trading opportunities. This week in trade ideas: Go strategic long Norwegian Krone vs EUR...

Virgil Fernandez Esguerra

Names Potentially Well Positioned to Beat Year-End Estimates

With a good portion of Japanese companies having already announced 1H results, we looked at the names that are well positioned for the second half....

Custom Products Group

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Tech Out, All Things EU In

Gains for JP names with EU exposure as markets shift away from AI plays. Sanken Electric limit up on ON Semi's bid for Allegro. Daikin's heat pump...

Andrew Jackson

Japan Weekly | Fujikura, Monotaro, Japan Steel Works

​Japanese stock indexes rose last week, with Fujikura and Japan Steel Works seeing significant gains on positive news in tech and defense sectors.

Mark Chadwick

Developed Markets Strategy: Stick with Japan

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE...

Vermilion Research

Week Ahead in Global Macro: US NFP, Tariffs, ECB, BOJ, RBA, China NPC/CPI/Trade, BOC, BNM

Our guide to this week’s global macro risk events and trading opportunities. This week in trade ideas: Go strategic long Norwegian Krone vs EUR...

Virgil Fernandez Esguerra

Names Potentially Well Positioned to Beat Year-End Estimates

With a good portion of Japanese companies having already announced 1H results, we looked at the names that are well positioned for the second half....

Custom Products Group

Japanese stock indexes rose last week, with Fujikura and Japan Steel Works seeing significant gains on positive news in tech and defense sectors.