Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>As AI shifts from software hype to hardware reality, hyperscalers plan $650–750 billion in 2026 capex for infrastructure, boosting upstream hardware suppliers.</li>
<li>Japan's Nikkei has outperformed globally (+13% YTD vs. Nasdaq's decline), driven by strong gains in materials and semiconductor equipment firms tied to the AI supply chain.</li>
<li>Prime Minister Takaichi's landslide election victory fuels optimism for pro-growth policies; markets reacted positively with equity rallies, yen strength, and falling yields.</li>
</ul>


As AI shifts from software hype to hardware reality, hyperscalers plan $650–750 billion in 2026 capex for infrastructure, boosting upstream hardware suppliers.
Japan's Nikkei has outperformed globally (+13% YTD vs. Nasdaq's decline), driven by strong gains in materials and semiconductor equipment firms tied to the AI supply chain.
Prime Minister Takaichi's landslide election victory fuels optimism for pro-growth policies; markets reacted positively with equity rallies, yen strength, and falling yields.


Japan Strategy Weekly | The Global Hardware Store for the AI Era

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>Nintendo numbers missed although firm doesn't see impact from higher memory prices this year.</li>
<li>Ibiden to invest Y500bn in new production facilities to capture AI demand.</li>
<li>Defense names should rally after US shoots down an Iranian drone.</li>
</ul>


Nintendo numbers missed although firm doesn't see impact from higher memory prices this year.
Ibiden to invest Y500bn in new production facilities to capture AI demand.
Defense names should rally after US shoots down an Iranian drone.


Japan Morning Connection: Rotation Out of Tech Although AH Mixed with Lumentum up AMD Down

<ul>
<li>Trump Intel meetings sends INTC higher in late trading...better for fab suppliers than tape suggests.</li>
<li>Trump touting Govt buying $200bn worth of MBS as panacea for housing.</li>
<li>Defense higher again, while Fast Retailing and Disco post good numbers.</li>
</ul>


Trump Intel meetings sends INTC higher in late trading...better for fab suppliers than tape suggests.
Trump touting Govt buying $200bn worth of MBS as panacea for housing.
Defense higher again, while Fast Retailing and Disco post good numbers.


Japan Morning Connection: Heat Comes Out of AI While Homebuilders Rebound Sharply

<ul>
<li>Takaichi loosening the investment spigots for nuclear and renewable will help the likes of JSW and Renova.</li>
<li>The European Commission banning ZTE and Huawei from telco networks will be a boon for NEC.</li>
<li>TSMC signalling 12 new leading edge fabs helps semi-caps outperforming, setting strong stage for Japan to start.</li>
</ul>


Takaichi loosening the investment spigots for nuclear and renewable will help the likes of JSW and Renova.
The European Commission banning ZTE and Huawei from telco networks will be a boon for NEC.
TSMC signalling 12 new leading edge fabs helps semi-caps outperforming, setting strong stage for Japan to start.


Japan Morning Connection: Risk-On Mood Accelerates on AI and Tech Dip Buying

<ul>
<li>
<strong> For the week: Nikkei: +3.6% | TPX +3.1% | JPY 152.84 (+2.20¥): </strong>equities broke decisively to new highs </li>
<li>The market’s optimism was anchored in political transition: the election of Sanae Takaichi as Japan’s first female prime minister </li>
<li>The coalition agreement unites conservative and reformist forces around constitutional, defense, and fiscal reforms to build a “strong and independent Japan.” </li>
</ul>



 For the week: Nikkei: +3.6% | TPX +3.1% | JPY 152.84 (+2.20¥): equities broke decisively to new highs 
The market’s optimism was anchored in political transition: the election of Sanae Takaichi as Japan’s first female prime minister 
The coalition agreement unites conservative and reformist forces around constitutional, defense, and fiscal reforms to build a “strong and independent Japan.” 


Japan Strategy Weekly | Building a Strong and Independent Japan

Japan

Kawasaki Heavy Industries, Ltd. designs, develops, and manufactures transport equipment and industrial heavy machinery for military and commercial use.  The Company produces ships, railroad cars, aircraft engines and parts, hydraulic and gas turbines, submarine engines, boilers, and industrial robots.  Kawasaki Heavy Industries offers engineering and construction services to industrial plants.

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Kawasaki Heavy Industries (7012 JP)

Japan Strategy Weekly | The Global Hardware Store for the AI Era

Hyperscalers plan massive capex for AI infrastructure, boosting hardware suppliers; Nikkei outperforms on strong gains in AI supply chain, &...

Mark Chadwick

Japan Morning Connection: Rotation Out of Tech Although AH Mixed with Lumentum up AMD Down

Software-related weak after Anthropic announced an AI tool that could fully replace existing products. Excessive weakness of Nintendo offers a...

Andrew Jackson

Japan Morning Connection: Heat Comes Out of AI While Homebuilders Rebound Sharply

JP defense names trading below their 2025 highs while global names run higher. Uniqlo's strong earnings release in Japan and Greater China bodes...

Andrew Jackson

Japan Morning Connection: Risk-On Mood Accelerates on AI and Tech Dip Buying

European Commission's ban on ZTE and Huawei benefits NEC. Law change for investments into nuclear power and electrical grids will be a positive for...

Andrew Jackson

Japan Strategy Weekly | Building a Strong and Independent Japan

Equities in Japan surged to new highs as market optimism was fueled by the election of Japan's first female prime minister, Sanae Takaichi, and a...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Strategy Weekly | The Global Hardware Store for the AI Era

​Hyperscalers plan massive capex for AI infrastructure, boosting hardware suppliers; Nikkei outperforms on strong gains in AI supply chain, &...

Mark Chadwick

Japan Morning Connection: Rotation Out of Tech Although AH Mixed with Lumentum up AMD Down

Software-related weak after Anthropic announced an AI tool that could fully replace existing products. Excessive weakness of Nintendo offers a...

Andrew Jackson

Japan Morning Connection: Heat Comes Out of AI While Homebuilders Rebound Sharply

JP defense names trading below their 2025 highs while global names run higher. Uniqlo's strong earnings release in Japan and Greater China bodes...

Andrew Jackson

Japan Morning Connection: Risk-On Mood Accelerates on AI and Tech Dip Buying

European Commission's ban on ZTE and Huawei benefits NEC. Law change for investments into nuclear power and electrical grids will be a positive for...

Andrew Jackson

Japan Strategy Weekly | Building a Strong and Independent Japan

​Equities in Japan surged to new highs as market optimism was fueled by the election of Japan's first female prime minister, Sanae Takaichi, and a...

Mark Chadwick

Hyperscalers plan massive capex for AI infrastructure, boosting hardware suppliers; Nikkei outperforms on strong gains in AI supply chain, &...

Equities in Japan surged to new highs as market optimism was fueled by the election of Japan's first female prime minister, Sanae Takaichi, and a...