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

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso Corp (6902 JP)</a> is looking to raise up to JPY137bn (US$940m) by selling 73.9m shares of <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> to international investors.</li>
<li>The indicative price range is JPY 1,812-1,848/share, a discount of 1-2.95% to Monday's close. The placement is 4.1% of shares outstanding and is 4.7 days of ADV.</li>
<li>We do not expect any passive buying at the time of settlement of the placement shares. The earliest passive buying will take place in August and September.</li>
</ul>



Denso Corp (6902 JP) is looking to raise up to JPY137bn (US$940m) by selling 73.9m shares of Renesas Electronics (6723 JP) to international investors.
The indicative price range is JPY 1,812-1,848/share, a discount of 1-2.95% to Monday's close. The placement is 4.1% of shares outstanding and is 4.7 days of ADV.
We do not expect any passive buying at the time of settlement of the placement shares. The earliest passive buying will take place in August and September.


Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Tech laggards bought in the US showing many in the market scrambling to catch the upside after the rapid snapback from last weeks drop.</li>
<li>Server related strength after Cisco numbers may see sentiment for Nidec finally improving with its cooling modules business emerging as an earnings driver.</li>
<li>Strong numbers for Coherent confirm the positive trends for its optical transceiver business which points to continued upside for AI data center plays</li>
</ul>


Tech laggards bought in the US showing many in the market scrambling to catch the upside after the rapid snapback from last weeks drop.
Server related strength after Cisco numbers may see sentiment for Nidec finally improving with its cooling modules business emerging as an earnings driver.
Strong numbers for Coherent confirm the positive trends for its optical transceiver business which points to continued upside for AI data center plays


Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Sentiment in Japan has reversed sharply showing strains in the JPY and JGB markets.  The Nikkei 225 has retraced all its gains since the election of Prime Minister Takaichi.</li>
<li>The market is nervous about the size of Takaichi's economic package, which will be ¥21.3 trillion; 27%. more than her predecessor pledged. It will increase bond issuance substantially.</li>
<li>Tensions from Takaichi's provocation of China show no sign of easing.  China has started economic and other measures to respond. The US has removed a missile launcher from Japan.</li>
</ul>


Sentiment in Japan has reversed sharply showing strains in the JPY and JGB markets.  The Nikkei 225 has retraced all its gains since the election of Prime Minister Takaichi.
The market is nervous about the size of Takaichi's economic package, which will be ¥21.3 trillion; 27%. more than her predecessor pledged. It will increase bond issuance substantially.
Tensions from Takaichi's provocation of China show no sign of easing.  China has started economic and other measures to respond. The US has removed a missile launcher from Japan.


Japan: The New Takaichi Trade, SELL THE RIP!

<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>Lam Research beat, but with 43% of revs still coming from China the market reaction is muted.</li>
<li>Japan's newly minted PM calls for defence spending 2-years ahead of schedule.</li>
<li>Samsung and S&amp;S Tech filing patents for EUV mask blanks the end for Hoya?</li>
</ul>


Lam Research beat, but with 43% of revs still coming from China the market reaction is muted.
Japan's newly minted PM calls for defence spending 2-years ahead of schedule.
Samsung and S&amp;S Tech filing patents for EUV mask blanks the end for Hoya?


Japan Morning Connection: Tesla Front Loading and IBM's Red Hat Failing to Impress Markets

Japan

NEC Corporation manufactures and markets computers, telecommunication equipment, electronic devices, semiconductors, and software.  The Company's products include printers, modems, cellular phones, plasma display panels (PDP), network systems, memory, integrated circuits (IC), thin film transistor-liquid crystal display (TFT-LCD), and printed circuit boards (PCB). NEC operates worldwide.

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NEC Corp (6701 JP)

Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters

Denso should raise US$940m by selling nearly their entire holding in Renesas Electronics. Unlikely to be any passive buying in the near term, but...

Brian Freitas

Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Andrew Jackson

Japan: The New Takaichi Trade, SELL THE RIP!

Sentiment in Japan has reversed sharply showing strains in the JPY and JGB markets. The Nikkei 225 has retraced all its gains since the election...

David Mudd

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 Morning Connection: Tesla Front Loading and IBM's Red Hat Failing to Impress Markets

Foreign Minister Moteigi's comments may lift drone companies. IBM falling after earnings may dent sentiment for the likes of Fujitsu and NEC.

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters

Denso should raise US$940m by selling nearly their entire holding in Renesas Electronics. Unlikely to be any passive buying in the near term, but...

Brian Freitas

Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

​US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Andrew Jackson

Japan: The New Takaichi Trade, SELL THE RIP!

Sentiment in Japan has reversed sharply showing strains in the JPY and JGB markets. The Nikkei 225 has retraced all its gains since the election...

David Mudd

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 Morning Connection: Tesla Front Loading and IBM's Red Hat Failing to Impress Markets

Foreign Minister Moteigi's comments may lift drone companies. IBM falling after earnings may dent sentiment for the likes of Fujitsu and NEC.

Andrew Jackson

US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...