Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Kokusai +25% last week and JX Metals +25.6% likely reversal targets at the open.</li>
<li>TeraDrone is pivoting from industrial drones to defense after consolidating two Ukrainian combat drone companies, an interesting thematic to get behind.</li>
<li>Astroscale continued to drop -8.6% yesterday after its earnings showed increasing losses but still an interesting name given its focus on space-junk removal and orbital services.</li>
</ul>


Kokusai +25% last week and JX Metals +25.6% likely reversal targets at the open.
TeraDrone is pivoting from industrial drones to defense after consolidating two Ukrainian combat drone companies, an interesting thematic to get behind.
Astroscale continued to drop -8.6% yesterday after its earnings showed increasing losses but still an interesting name given its focus on space-junk removal and orbital services.


Japan Morning Connection: AI Related Names Set to Slide Following SOX's Skittish Retreat from Highs

Iron Ore, Copper, Equities, Mint Finance

Umang Agrawal

Iron Ore, Copper, Equities

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

<ul>
<li>Japan’s AI rally has weathered geopolitical shocks and valuation concerns, with sustained AI spending still providing a powerful long-term tailwind.</li>
<li>Rising expectations of Bank of Japan rate hikes have boosted the financials sector, as wider lending margins are expected to support stronger bank earnings.</li>
<li>Foreign buying helped propel Japanese equities higher, but recent profit-taking suggests investors are reassessing risk-reward dynamics.</li>
</ul>


Japan’s AI rally has weathered geopolitical shocks and valuation concerns, with sustained AI spending still providing a powerful long-term tailwind.
Rising expectations of Bank of Japan rate hikes have boosted the financials sector, as wider lending margins are expected to support stronger bank earnings.
Foreign buying helped propel Japanese equities higher, but recent profit-taking suggests investors are reassessing risk-reward dynamics.


Japan’s AI Trade Holds Firm Amid Market Turbulence

<ul>
<li>Kioxia +650% YTD, and the most crowded name on the TSE, likely to face sharp selling at the open.</li>
<li>Optical fiber names Furukawa, SEI and Fujikura all in the firing line along with MLCC plays Taiyo Yuden, Murata and TDK.</li>
<li>Expect a sharp rotation back to domestic defensives and the software plays.</li>
</ul>


Kioxia +650% YTD, and the most crowded name on the TSE, likely to face sharp selling at the open.
Optical fiber names Furukawa, SEI and Fujikura all in the firing line along with MLCC plays Taiyo Yuden, Murata and TDK.
Expect a sharp rotation back to domestic defensives and the software plays.


Japan Morning Connection: AI Rally Faces a Correction After SOX Has Biggest Drop in 6 Years

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>Yesterday, the TSE announced the TOPIX review for October 2026. This is a single large announcement covering a massive methodology change.</li>
<li>There are 35 ADDs (we estimated 33, got 32/33 right) and 684 Transitional DELETEs (we estimated 694, got 672/694).</li>
<li>This creates US$69bn of flows in October and $13bn of flows in November. Expect a fair bit of jockeying from today onward.</li>
</ul>


Yesterday, the TSE announced the TOPIX review for October 2026. This is a single large announcement covering a massive methodology change.
There are 35 ADDs (we estimated 33, got 32/33 right) and 684 Transitional DELETEs (we estimated 694, got 672/694).
This creates US$69bn of flows in October and $13bn of flows in November. Expect a fair bit of jockeying from today onward.


[Quiddity Index] The Oct26 TOPIX Rebalance - 35 IN, 684 on a Slow Walk OUT; $69bn to Trade

<ul>
<li>Kioxia set for a big open after a brief -4.6% correction yesterday with comment from UBS turning memory sentiment decisively bullish.</li>
<li>Xiaomi’s numbers yesterday should be a shot across the bow for smartphone related names. MLCC makers Taiyo Yuden, Murata and TDK looking increasingly stretched with big exposure to the market.</li>
<li>Software rotation bid evaporates as AI surges. Expect an underperformance today.</li>
</ul>


Kioxia set for a big open after a brief -4.6% correction yesterday with comment from UBS turning memory sentiment decisively bullish.
Xiaomi’s numbers yesterday should be a shot across the bow for smartphone related names. MLCC makers Taiyo Yuden, Murata and TDK looking increasingly stretched with big exposure to the market.
Software rotation bid evaporates as AI surges. Expect an underperformance today.


Japan Morning Connection: Kioxia Set for a Big Open as Memory Surges to New Records

Japan

Kioxia Holdings Corporation manufactures semiconductor memory products. The Company develops, produces, and sells flash memory cards, solid state drives, secure digital memory cards, and other products. Kioxia Holdings also operates group management strategy formulation and management.

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Kioxia Holdings (285A JP)

Japan’s AI Trade Holds Firm Amid Market Turbulence

Foreign buyers are stepping back, but Japan’s place in the AI boom leaves the long-term investment narrative intact and compelling.

Mint Finance

Japan Morning Connection: AI Rally Faces a Correction After SOX Has Biggest Drop in 6 Years

SOX worst day in 6 years leaves Japan's AI names facing a tough open. Expect a sharp rotation back to domestic defensives and the software plays.

Andrew Jackson

[Quiddity Index] The Oct26 TOPIX Rebalance - 35 IN, 684 on a Slow Walk OUT; $69bn to Trade

The TOPIX Rebal has been announced. 35 ADDs, 684 DELETEs. We had it at 33/694 (of which we were 97%/98% correct). We see October flows at US$69bn,...

Travis Lundy

Japan Morning Connection: Kioxia Set for a Big Open as Memory Surges to New Records

Memory sentiment bullish after UBS comment, setting up a big open for Kioxia after a brief -4.6% correction yesterday. Semi names offer buying...

Andrew Jackson

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Japan Morning Connection: AI Related Names Set to Slide Following SOX's Skittish Retreat from Highs

AI trade cracks under its own weight but big dips likely buying opportunities. Kokusai and JX Metals likely reversal targets.

Andrew Jackson

Japan’s AI Trade Holds Firm Amid Market Turbulence

Foreign buyers are stepping back, but Japan’s place in the AI boom leaves the long-term investment narrative intact and compelling.

Mint Finance

Japan Morning Connection: AI Rally Faces a Correction After SOX Has Biggest Drop in 6 Years

SOX worst day in 6 years leaves Japan's AI names facing a tough open. Expect a sharp rotation back to domestic defensives and the software plays.

Andrew Jackson

[Quiddity Index] The Oct26 TOPIX Rebalance - 35 IN, 684 on a Slow Walk OUT; $69bn to Trade

The TOPIX Rebal has been announced. 35 ADDs, 684 DELETEs. We had it at 33/694 (of which we were 97%/98% correct). We see October flows at US$69bn,...

Travis Lundy

Japan Morning Connection: Kioxia Set for a Big Open as Memory Surges to New Records

Memory sentiment bullish after UBS comment, setting up a big open for Kioxia after a brief -4.6% correction yesterday. Semi names offer buying...

Andrew Jackson