Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  SPX500 fell on Friday, and closed -2.3%WoW;  July jobs report showed cooling in the labor market;  Apple -4.8% weighed on market sentiment; Reports that Buffet buying short dated UST.</li>
<li>JAPAN. NKY Futures -0.8% vs Cash; USDJPY 141.8; Strong JP earning season so far- NP +20%YoY; Investors favor Japan&gt;  China;  Oasis's Fischer says still more to be done with Governance.</li>
<li>NUGGET. Honda is ahead of their motorcycle electrification strategy vs Japanese competitors.  With the #1 global share and 2.7 trillion yen in sales, they CANNOT afford to be left behind.</li>
</ul>


OVERSEAS.  SPX500 fell on Friday, and closed -2.3%WoW;  July jobs report showed cooling in the labor market;  Apple -4.8% weighed on market sentiment; Reports that Buffet buying short dated UST.
JAPAN. NKY Futures -0.8% vs Cash; USDJPY 141.8; Strong JP earning season so far- NP +20%YoY; Investors favor Japan&gt;  China;  Oasis's Fischer says still more to be done with Governance.
NUGGET. Honda is ahead of their motorcycle electrification strategy vs Japanese competitors.  With the #1 global share and 2.7 trillion yen in sales, they CANNOT afford to be left behind.


Ohayo Japan| SPX -2.3%WoW; Buffett Buying UST; NUGGET:Motorcycle Electrification - Honda Roars Ahead

<ul>
<li>OVERSEAS. Fed Lifts rates +25bps as expected; No longer sees recession emerging; Equities - Mixed as Industrials Rally, Tech Sells off; Meta Beats on Rev/EPS; Boeing Surges on Outloook</li>
<li>JAPAN. Nikkei Futures -0.4% vs Cash; USDJPY 140.4; Fed Move Done, but for BOJ - Potential for a Surprise Move ? Advantest Miss-back to reality ?  Earnings in Full Swing. </li>
<li>NUGGET. Japanese Executives Not Properly Incentivized; Shareholders need to take a different tact in addressing corporate performance. </li>
</ul>


OVERSEAS. Fed Lifts rates +25bps as expected; No longer sees recession emerging; Equities - Mixed as Industrials Rally, Tech Sells off; Meta Beats on Rev/EPS; Boeing Surges on Outloook
JAPAN. Nikkei Futures -0.4% vs Cash; USDJPY 140.4; Fed Move Done, but for BOJ - Potential for a Surprise Move ? Advantest Miss-back to reality ?  Earnings in Full Swing. 
NUGGET. Japanese Executives Not Properly Incentivized; Shareholders need to take a different tact in addressing corporate performance. 


Ohayo Japan| Fed Watch: Now for Hawkish Hold; Advantest Miss; NUGGET: JP Executives Not Incentivized

<ul>
<li>OVERSEAS. SPX +0.7% with all sectors in the green ahead of expected soft CPI print on Wed; Oil strong with weaker USD; MSFT wins as Activision purchase progresses</li>
<li>JAPAN. NKY Futures +0.4% vs Cash; USDJPY 140.3; Markets start coalesing around BOJ policy shift; TSE kicks out 48 companies from Prime listing; Big Earnings Beat from Lawson(2651)</li>
<li>NUGGET. Building a global semi-supply chain is a central tenet of Japan's industrial policy. We think focusing on short term cyclical semi-weakness risks missing out on the home runs</li>
</ul>


OVERSEAS. SPX +0.7% with all sectors in the green ahead of expected soft CPI print on Wed; Oil strong with weaker USD; MSFT wins as Activision purchase progresses
JAPAN. NKY Futures +0.4% vs Cash; USDJPY 140.3; Markets start coalesing around BOJ policy shift; TSE kicks out 48 companies from Prime listing; Big Earnings Beat from Lawson(2651)
NUGGET. Building a global semi-supply chain is a central tenet of Japan's industrial policy. We think focusing on short term cyclical semi-weakness risks missing out on the home runs


Ohayo Japan|Equities Bid Ahead of CPI Print; NUGGET:China Semi Derisking - The Winner Is…Yes, Japan!

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>Global equities (MSCI ACWI) have marginally broken above the top-end of our anticipated 2023 trading range of $93 on ACWI-US.</li>
<li>In our 4/18/23 Int’l MacroVision we acknowledged that a break above $93 and a reach to $96-$97 was also possible – and so far, this is what has played out.</li>
<li>We will continue to watch the $93 level for a potential false breakout, but as long as the ACWI-US is above $90.50, we cannot be bearish.</li>
</ul>


Global equities (MSCI ACWI) have marginally broken above the top-end of our anticipated 2023 trading range of $93 on ACWI-US.
In our 4/18/23 Int’l MacroVision we acknowledged that a break above $93 and a reach to $96-$97 was also possible – and so far, this is what has played out.
We will continue to watch the $93 level for a potential false breakout, but as long as the ACWI-US is above $90.50, we cannot be bearish.


MSCI EM Improving; Buys in Value & Large-Cap EM; Remain Overweight Japan, India, Taiwan, and Greece

<ul>
<li>OVERSEAS.  SPX -0.5% with most Sector in the Red; Residential Construction STRONG; China Rate Cut disappoints; TESLA +5.3% bags Rivian for Charging Network.</li>
<li>JAPAN. NKY Futs -0.9% vs Cash; Blackrock's Fink say Japan benefitting from China Flight; Labor market loosing as JP workers shying away from liftime employment; Yamato HD exits mail delivery</li>
<li>NUGGET. Nintendo(7974) - Doing a Disney..using its IP…Now Mario out, Rumour are "Legend of Zelda" Movie in the works.. </li>
</ul>


OVERSEAS.  SPX -0.5% with most Sector in the Red; Residential Construction STRONG; China Rate Cut disappoints; TESLA +5.3% bags Rivian for Charging Network.
JAPAN. NKY Futs -0.9% vs Cash; Blackrock's Fink say Japan benefitting from China Flight; Labor market loosing as JP workers shying away from liftime employment; Yamato HD exits mail delivery
NUGGET. Nintendo(7974) - Doing a Disney..using its IP…Now Mario out, Rumour are "Legend of Zelda" Movie in the works.. 


Ohayo Japan| US Back to an Equity Sell Off; NUGGET: Nintendo(7974) - Set to Track Disney's Success ?

Japan

Mitsubishi Heavy Industries, Ltd. is a comprehensive heavy machinery maker. The Company manufactures machinery, ships, turbines and engines, prime movers, aircrafts, and machine parts for military and commercial use.  Mitsubishi Heavy Industries also researches and develops nuclear power plants.

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Mitsubishi Heavy Industries (7011 JP)

Ohayo Japan| SPX -2.3%WoW; Buffett Buying UST; NUGGET:Motorcycle Electrification - Honda Roars Ahead

JAPAN. NKY Futures -0.8% vs Cash; USDJPY 141.8; Strong JP earning season so far- NP +20%YoY; Global Investors favor Japan over China; Oasis's...

Mark Chadwick

Ohayo Japan| Fed Watch: Now for Hawkish Hold; Advantest Miss; NUGGET: JP Executives Not Incentivized

Now for a Hawkish Hold from the Fed; Nikkei Futures -0.4% vs Cash; USDJPY 140.4; Fed Move Down, but for BOJ - Potential for a Surprise Move ?...

Mark Chadwick

Ohayo Japan|Equities Bid Ahead of CPI Print; NUGGET:China Semi Derisking - The Winner Is…Yes, Japan!

SPX bid ahead of CPI as soft landing narrarive dominates; NKY Futures +0.4% vs Cash; USDJPY 140.3; Markets start coalesing around BOJ policy shift;...

Mark Chadwick

MSCI EM Improving; Buys in Value & Large-Cap EM; Remain Overweight Japan, India, Taiwan, and Greece

MSCI EM Improving; Buys in Value & Large-Cap EM $TSM #Samsung $BABA; Remain Overweight Japan, India, Taiwan, and Greece. $ACWI break above $93 and...

Vermilion Research

Ohayo Japan| US Back to an Equity Sell Off; NUGGET: Nintendo(7974) - Set to Track Disney's Success ?

US Back - in the Red despite strong housing; NKY Futs -0.9% vs Cash; Blackrock's Fink say Japan benefitting from China Flight; Yamato HD exits mail...

Mark Chadwick

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