Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> September rebalance ended on 31 July. Nikkei has also confirmed <a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a>'s capping at the rebalance.</li>
<li>The newly created Information &amp; Communication sector is the most underweight while the Technology sector remains the most overweight. We could see some changes from these sectors.</li>
<li>The changes at the September rebalance will set the tone for future rebalances and sector balance is likely to play a large role moving forward.</li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) September rebalance ended on 31 July. Nikkei has also confirmed Advantest Corp (6857 JP)'s capping at the rebalance.
The newly created Information &amp; Communication sector is the most underweight while the Technology sector remains the most overweight. We could see some changes from these sectors.
The changes at the September rebalance will set the tone for future rebalances and sector balance is likely to play a large role moving forward.


Nikkei 225 Index Rebalance Preview (Sep 2026): Potential Adds, Deletes, Capping & Other Changes

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Macroeconomics

<ul><li>The Biden Administration announced this week an increase of tariffs targeting some China’s strategic sectors starting this year.</li><li>For solar cell/module (tariff to increase from 25% to 50%), we believe there will be no real impact given that direct export from China to the US was &lt;1% in 2023.</li><li>That said, the upcoming decision on tariff targeting the Southeast Asia will be more critical given meaningful Chinese companies’ capacity is located there (~60GW by end-2023). </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

The Biden Administration announced this week an increase of tariffs targeting some China’s strategic sectors starting this year.For solar cell/module (tariff to increase from 25% to 50%), we believe there will be no real impact given that direct export from China to the US was &lt;1% in 2023.That said, the upcoming decision on tariff targeting the Southeast Asia will be more critical given meaningful Chinese companies’ capacity is located there (~60GW by end-2023). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Assessing the impact of US tariff on China’s solar cells and STS cranes

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Thematic (Sector/Industry)

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/117/227/original/2020-02-11_05-05-13.png?1581376613" class="editor-image img-responsive" data-smartkarma-image-id="117227"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>10TH FEBRUARY ROUNDUP</strong> - 189 results and 93 revision announcements had little impact on our aggregate Scores, although decliners still outweighed improvers by a factor of two times. Amongst larger caps, <a href="https://www.smartkarma.com/entities/mitsubishi-estate-co-ltd" target="_blank" data-smartkarma-citation="entities:566:1" rel="noopener">Mitsubishi Estate (8802 JP)</a> produced the best quarter-on-quarter change in Score, with <a href="https://www.smartkarma.com/entities/sundrug-co-ltd" target="_blank" data-smartkarma-citation="entities:12615:1" rel="noopener">Sundrug (9989 JP)</a> being one of the worst. Today is a public holiday (<em>kenkoku kinen no hi</em>), and so the next roundup will appear on Wednesday morning. </p><hr><p style="text-align: center;"><strong>• SECTOR TIMELINE •</strong></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/117/228/original/2020-02-11_05-08-14.png?1581377317" class="editor-image img-responsive" data-smartkarma-image-id="117228"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>SECTOR TIMELINE</strong> - Monday's main moves were upwards for <strong>Real Estate</strong> and<strong> Media</strong> (<a href="https://www.smartkarma.com/entities/hakuhodo-dy-holdings-inc" target="_blank" data-smartkarma-citation="entities:8736:1" rel="noopener">Hakuhodo DY (2433 JP)</a>) and downwards (again) for <strong>Other Commercial Products</strong> (<a href="https://www.smartkarma.com/entities/hamamatsu-photonics-kk" target="_blank" data-smartkarma-citation="entities:14074:1" rel="noopener">Hamamatsu Photonics (6965 JP)</a>) and<strong> Building Materials</strong> (<a href="https://www.smartkarma.com/entities/nichias-corp" target="_blank" data-smartkarma-citation="entities:14674:1" rel="noopener">Nichias (5393 JP)</a>). </p>

Source • Japan Analytics10TH FEBRUARY ROUNDUP - 189 results and 93 revision announcements had little impact on our aggregate Scores, although decliners still outweighed improvers by a factor of two times. Amongst larger caps, Mitsubishi Estate (8802 JP) produced the best quarter-on-quarter change in Score, with Sundrug (9989 JP) being one of the worst. Today is a public holiday (kenkoku kinen no hi), and so the next roundup will appear on Wednesday morning. • SECTOR TIMELINE •Source • Japan AnalyticsSECTOR TIMELINE - Monday's main moves were upwards for Real Estate and Media (Hakuhodo DY (2433 JP)) and downwards (again) for Other Commercial Products (Hamamatsu Photonics (6965 JP)) and Building Materials (Nichias (5393 JP)). 

🇯🇵 JAPAN • Results & Revisions Daily Roundup - 10th February ▲7003 8802 2433 ▼6965 9989 6324

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.

<p>At the beginning of the fiscal year, Japanese companies issue full-year guidance. Most of them will then revise those number when they announce 2Q results in the fall. Their hope is that they get close enough to the up and coming actual results so that they do not have to change anything again before the year closes. </p><p>We have screened for companies that have significantly changed their full-year guidance. </p>

At the beginning of the fiscal year, Japanese companies issue full-year guidance. Most of them will then revise those number when they announce 2Q results in the fall. Their hope is that they get close enough to the up and coming actual results so that they do not have to change anything again before the year closes. We have screened for companies that have significantly changed their full-year guidance. 

2Q Earnings Is the Time for Full-Year Guidance Revisions. See Who Changed Their Numbers the Most....

<p>We screened for names in Japan with a low PBR relative to its own history and also low relative to other names in the Sector. Large-cap names that made the list are  <a href="https://www.smartkarma.com/entities/154" target="_blank" data-smartkarma-citation="entities:154:1">Honda Motor Co Ltd (7267 JP)</a> with a 0.7x PBR, <a href="https://www.smartkarma.com/entities/961" target="_blank" data-smartkarma-citation="entities:961:1">Nippon Steel &amp; Sumitomo Metal Corp (5401 JP)</a> with a 0.6x PBR and <a href="https://www.smartkarma.com/entities/13613" target="_blank" data-smartkarma-citation="entities:13613:1">Mitsubishi Heavy Industries (7011 JP)</a> with a 0.7x PBR.</p><h2>Screen Criteria</h2><ol>
<li>Absolute PBR is less than 1.1x</li>
<li>Current PBR is currently 20% or more below the 5-year median PBR</li>
<li>Current PBR is 20% or more below the Sector Median</li>
</ol><h2>Screen</h2>…

We screened for names in Japan with a low PBR relative to its own history and also low relative to other names in the Sector. Large-cap names that made the list are  Honda Motor Co Ltd (7267 JP) with a 0.7x PBR, Nippon Steel &amp; Sumitomo Metal Corp (5401 JP) with a 0.6x PBR and Mitsubishi Heavy Industries (7011 JP) with a 0.7x PBR.Screen Criteria
Absolute PBR is less than 1.1x
Current PBR is currently 20% or more below the 5-year median PBR
Current PBR is 20% or more below the Sector Median
Screen…

Names with Low PBR Relative to History and Sector....

Japan

Mitsui E&S Holdings Co., Ltd. engineers, builds, and repairs ships.  The Company also manufactures industrial machinery and equipment and builds power plants.  Mitsui Engineering & Shipbuilding also operates information systems services and real estate business.

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Mitsui E&S Holdings (7003 JP)

Nikkei 225 Index Rebalance Preview (Sep 2026): Potential Adds, Deletes, Capping & Other Changes

We forecast 3 changes for the NKY in Sep and highlight potential changes. The introduction of a new sector and a new rule changes things a bit and...

Brian Freitas

Capital Goods - Assessing the impact of US tariff on China’s solar cells and STS cranes

The Biden Administration announced this week an increase of tariffs targeting some China’s strategic sectors starting this year.

CMB International

🇯🇵 JAPAN • Results & Revisions Daily Roundup - 10th February ▲7003 8802 2433 ▼6965 9989 6324

10TH FEBRUARY ROUNDUP - 189 results and 93 revision announcements had little impact on our aggregate Scores, although decliners still outweighed...

Campbell Gunn

2Q Earnings Is the Time for Full-Year Guidance Revisions. See Who Changed Their Numbers the Most....

At the beginning of the fiscal year, Japanese companies issue full-year guidance. Most of them will then revise those number when they announce 2Q...

Custom Products Group

Names with Low PBR Relative to History and Sector....

We screened for names in Japan with a low PBR relative to its own history and also low relative to other names in the Sector. Large-cap names that...

Custom Products Group

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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