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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</div><div>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> and <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home Co Ltd (6690 HK)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a>. Shorts increased in the Communication Services, Consumer Discretionary, Health Care and Real Estate sectors, and decreased in the Financials, Industrials, and Information Technology sectors.</div><div>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/lasertec-corp" target="_blank" data-smartkarma-citation="entities:4126:1" rel="noopener">Lasertec Corp (6920 JP)</a>, <a href="https://www.smartkarma.com/entities/anritsu-corp" target="_blank" data-smartkarma-citation="entities:3700:1" rel="noopener">Anritsu Corp (6754 JP)</a>, <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a>, <a href="https://www.smartkarma.com/entities/jfe-holdings-inc" target="_blank" data-smartkarma-citation="entities:210:1" rel="noopener">JFE Holdings (5411 JP)</a> and <a href="https://www.smartkarma.com/entities/tokyu-fudosan-holdings-corp" target="_blank" data-smartkarma-citation="entities:8355:1" rel="noopener">Tokyu Fudosan Holdings (3289 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/ana-holdings-inc" target="_blank" data-smartkarma-citation="entities:5308:1" rel="noopener">Ana Holdings (9202 JP)</a>, <a href="https://www.smartkarma.com/entities/h-i-s-co-ltd" target="_blank" data-smartkarma-citation="entities:19311:1" rel="noopener">H I S Co Ltd (9603 JP)</a>, <a href="https://www.smartkarma.com/entities/outsourcing-inc" target="_blank" data-smartkarma-citation="entities:7431:1" rel="noopener">Outsourcing Inc (2427 JP)</a> and <a href="https://www.smartkarma.com/entities/euglena-co-ltd" target="_blank" data-smartkarma-citation="entities:8414:1" rel="noopener">Euglena Co Ltd (2931 JP)</a>. Shorts increased in the Real Estate and Consumer Discretionary sectors, and decreased in the Industrials sector.</div><div>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a> during the week while decreasing on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/hyundai-heavy-industries" target="_blank" data-smartkarma-citation="entities:10155:1" rel="noopener">Hyundai Heavy Industries (009540 KS)</a> and <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>. The short sell ban has ended today and short selling will be permitted on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituents from Monday, 3 May.</div><div>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/china-development-financial" target="_blank" data-smartkarma-citation="entities:13818:1" rel="noopener">China Development Financial (2883 TT)</a>, <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/walsin-lihwa-corp" target="_blank" data-smartkarma-citation="entities:17142:1" rel="noopener">Walsin Lihwa (1605 TT)</a> and <a href="https://www.smartkarma.com/entities/compal-electronics" target="_blank" data-smartkarma-citation="entities:4620:1" rel="noopener">Compal Electronics (2324 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a>, <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a>, <a href="https://www.smartkarma.com/entities/asmedia-technology-inc" target="_blank" data-smartkarma-citation="entities:15732:1" rel="noopener">Asmedia Technology (5269 TT)</a>, <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a> and <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>.</div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Tencent Holdings (700 HK), Meituan (3690 HK), China Merchants Bank H (3968 HK), WuXi AppTec Co. Ltd. (2359 HK) and Sunny Optical (2382 HK) while there was short covering on Ping An Insurance (H) (2318 HK), Baidu (9888 HK), Haier Smart Home Co Ltd (6690 HK), Alibaba Group (9988 HK) and Citic Securities (H) (6030 HK). Shorts increased in the Communication Services, Consumer Discretionary, Health Care and Real Estate sectors, and decreased in the Financials, Industrials, and Information Technology sectors.In Japan, stocks that saw the most shorts were Lasertec Corp (6920 JP), Anritsu Corp (6754 JP), Daito Trust Construct (1878 JP), JFE Holdings (5411 JP) and Tokyu Fudosan Holdings (3289 JP) while shorts decreased on Toshiba Corp (6502 JP), Ana Holdings (9202 JP), H I S Co Ltd (9603 JP), Outsourcing Inc (2427 JP) and Euglena Co Ltd (2931 JP). Shorts increased in the Real Estate and Consumer Discretionary sectors, and decreased in the Industrials sector.In Korea, shorts increased on Celltrion Inc (068270 KS) and Hyundai Motor Co (005380 KS) during the week while decreasing on Samsung Electronics (005930 KS), Hyundai Heavy Industries (009540 KS) and Doosan Infracore (042670 KS). The short sell ban has ended today and short selling will be permitted on Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX) constituents from Monday, 3 May.Stocks in Taiwan that saw the highest increase in shorts were China Development Financial (2883 TT), Yang Ming Marine Transport (2609 TT), Evergreen Marine Corp (2603 TT), Walsin Lihwa (1605 TT) and Compal Electronics (2324 TT) while shorts were covered on AU Optronics (2409 TT), Winbond Electronics (2344 TT), Asmedia Technology (5269 TT), Genius Electronic Optical (3406 TT) and Novatek Microelectronics Corp (3034 TT).

Asia Shorts: Tencent, CM Bank, Wuxi Apptec, Baidu, Anritsu, Daito, Ana, Yang Ming, Evergreen Marine

Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

Equity Bottom-Up

Matching Service Japan / Equity Bottom-Up

<ul>
<li>Recruitment agency businesses have their general attractions in Japan, but we would focus on the highest-quality names like JAC Recruitment and Matching Service Japan;</li>
<li>Both companies appear to compete advantageously partly thanks to their niche focuses;</li>
<li>Both shares trade at similar valuations;</li>
<li>We feel it way more difficult to pick between the two than set them apart from the larger crowd, but here is our No. 1 pick if we have to choose.</li>
</ul>


Recruitment agency businesses have their general attractions in Japan, but we would focus on the highest-quality names like JAC Recruitment and Matching Service Japan;
Both companies appear to compete advantageously partly thanks to their niche focuses;
Both shares trade at similar valuations;
We feel it way more difficult to pick between the two than set them apart from the larger crowd, but here is our No. 1 pick if we have to choose.


Two Japanese High-Quality, Niche-Focused Recruitment Agents

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<blockquote>
“I don’t believe BlackRock will be ever 100% back in [the] office - maybe 60% or 70%, and maybe that’s a rotation of people. I don’t believe we’ll ever have a full cadre of people in [the] office [again]. It’s going to be a new workforce. It’s going to be a new paradigm, but I do believe it will be a better paradigm for the firm."
<h3>Larry Fink, CEO, Blackrock Inc.</h3>
Thursday 17rh September 2020
</blockquote><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/259/original/2020-09-21_08-28-32.png?1600644541" class="editor-image img-responsive" data-smartkarma-image-id="160259"></figure><div class="content-caption">Source for all charts: Japan Analytics</div><a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit (6098 JP)</a>- Since listing in October 2014 has been a key 'Abe-era stock' - rising by 284% from its February 2016 low. As a prime beneficiary of more flexible working practices and the rise of the temporary workforce in Japan.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/264/original/2020-09-21_08-56-49.png?1600646221" class="editor-image img-responsive" data-smartkarma-image-id="160264"></figure>PEAK TEMP - Using a sample of all currently-listed companies, the number of temporary workers has increased tenfold to 4.7 million since 2000 and ratio of 'temps' to full-time employees has more than quadrupled, reaching a peak of 23.2% in 2018. Much of the rise has come at consolidated subsidiaries - the number of temps at head offices has not changed materially since reaching one million in 2006. As in other countries, many Japanese manufacturing companies face a material reduction in demand which will eventually result in 'reductions-in-force'  with temps bearing the initial brunt.  Also, tighter <a href="https://asia.nikkei.com/Politics/Japan-to-implement-fair-pay-rule-for-temporary-workers" target="_blank" rel="noopener">regulation</a> on abuse of the working terms conditions offered to temporary workers has forced many companies to offer full-time employment to temp staff.THE REVELATION OF WFH - The COVID-induced experience of working-from-home (WFH) has been a revelation for many office staff in central Tokyo who had previously endured tortuous two-hour-long-daily commutes on crowded trains. Many do not wish to return to the past ways of working and commuting, echoing Larry Fink thoughts above. For Japanese HR departments, WFH will require a substantial commitment in terms of IT infrastructure. In many companies, employees have to log out while in the office every time they leave their desk. It is unlikely that companies will make such an investment and extend such trust to temporary workers. With 20% of revenues generated in the US and a further 25% from 'Other Regions', Recruit is heavily exposed to global COVID and WFH trends. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/320/original/File%202020-09-21%2013%2023%2023.jpeg?1600662226" class="editor-image img-responsive" data-smartkarma-image-id="160320"></figure>LESS OFFICE SPACE, LESS PAPERWORK, FEWER TEMPS - Overall, WFH will result in a decline in demand for CBD office space, but also will lead to less paperwork, more efficient working methods, and a reduction in the requirement for 'temps'. This trend has now been given government-backing with the creation of a new <a href="https://jp.reuters.com/article/us-japan-politics/japan-pm-suga-aims-to-get-flagship-digital-agency-running-by-autumn-2021-nikkei-idUSKBN2683DK" target="_blank" rel="noopener">Digital Agency</a> by 2021.   <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/280/original/2020-09-21_10-09-11.png?1600650563" class="editor-image img-responsive" data-smartkarma-image-id="160280"></figure>REVENUES ▲ - Recruit has grown revenues faster than any other larger Commercial Services company in Japan since 2013, outshining peers <a href="https://www.smartkarma.com/entities/temp-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1428:1" rel="noopener">Persol (2181 JP)</a> and <a href="https://www.smartkarma.com/entities/outsourcing-inc" target="_blank" data-smartkarma-citation="entities:7431:1" rel="noopener">Outsourcing (2427 JP)</a>.  <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/284/original/2020-09-21_10-13-19.png?1600650809" class="editor-image img-responsive" data-smartkarma-image-id="160284"></figure>PROFITS ► - Recruit's 'bottom-lin'  has been much less impressive and since recovering from a period of losses in FY17, Comprehensive Income to Common (CITC) has failed to grow over the last three years.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/286/original/2020-09-21_10-16-07.png?1600650978" class="editor-image img-responsive" data-smartkarma-image-id="160286"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/287/original/2020-09-21_10-17-29.png?1600651062" class="editor-image img-responsive" data-smartkarma-image-id="160287"></figure>MIDDLING MARGINS - Indeed, within the Employment and Staffing Services Peer Group, Recruit ranks eighteenth out sixty in terms of trailing CITC margin at 6.3%.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/290/original/2020-09-21_10-22-57.png?1600651387" class="editor-image img-responsive" data-smartkarma-image-id="160290"></figure>RELATIVE PRICE SCORE ▲ -Recruit accounts for 75% of its Peer Group's market capitalisation and has been the prime driver taking both to new Relative Price Score highs in recent weeks.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/160/291/original/2020-09-21_10-25-45.png?1600651558" class="editor-image img-responsive" data-smartkarma-image-id="160291"></figure>RESULTS &amp; REVISION SCORE ▼ - The trend in Rescuit and the Peer Group's earning momentum since 2018 has been down, which COVID-19 has accelerated. In the DETAIL below,  we shall review Recruit's financial performance and valuation and assess if Recruit is a 'structural short'.


“I don’t believe BlackRock will be ever 100% back in [the] office - maybe 60% or 70%, and maybe that’s a rotation of people. I don’t believe we’ll ever have a full cadre of people in [the] office [again]. It’s going to be a new workforce. It’s going to be a new paradigm, but I do believe it will be a better paradigm for the firm."
Larry Fink, CEO, Blackrock Inc.
Thursday 17rh September 2020
Source for all charts: Japan AnalyticsRecruit (6098 JP)- Since listing in October 2014 has been a key 'Abe-era stock' - rising by 284% from its February 2016 low. As a prime beneficiary of more flexible working practices and the rise of the temporary workforce in Japan.PEAK TEMP - Using a sample of all currently-listed companies, the number of temporary workers has increased tenfold to 4.7 million since 2000 and ratio of 'temps' to full-time employees has more than quadrupled, reaching a peak of 23.2% in 2018. Much of the rise has come at consolidated subsidiaries - the number of temps at head offices has not changed materially since reaching one million in 2006. As in other countries, many Japanese manufacturing companies face a material reduction in demand which will eventually result in 'reductions-in-force'  with temps bearing the initial brunt.  Also, tighter regulation on abuse of the working terms conditions offered to temporary workers has forced many companies to offer full-time employment to temp staff.THE REVELATION OF WFH - The COVID-induced experience of working-from-home (WFH) has been a revelation for many office staff in central Tokyo who had previously endured tortuous two-hour-long-daily commutes on crowded trains. Many do not wish to return to the past ways of working and commuting, echoing Larry Fink thoughts above. For Japanese HR departments, WFH will require a substantial commitment in terms of IT infrastructure. In many companies, employees have to log out while in the office every time they leave their desk. It is unlikely that companies will make such an investment and extend such trust to temporary workers. With 20% of revenues generated in the US and a further 25% from 'Other Regions', Recruit is heavily exposed to global COVID and WFH trends. LESS OFFICE SPACE, LESS PAPERWORK, FEWER TEMPS - Overall, WFH will result in a decline in demand for CBD office space, but also will lead to less paperwork, more efficient working methods, and a reduction in the requirement for 'temps'. This trend has now been given government-backing with the creation of a new Digital Agency by 2021.   REVENUES ▲ - Recruit has grown revenues faster than any other larger Commercial Services company in Japan since 2013, outshining peers Persol (2181 JP) and Outsourcing (2427 JP).  PROFITS ► - Recruit's 'bottom-lin'  has been much less impressive and since recovering from a period of losses in FY17, Comprehensive Income to Common (CITC) has failed to grow over the last three years.MIDDLING MARGINS - Indeed, within the Employment and Staffing Services Peer Group, Recruit ranks eighteenth out sixty in terms of trailing CITC margin at 6.3%.RELATIVE PRICE SCORE ▲ -Recruit accounts for 75% of its Peer Group's market capitalisation and has been the prime driver taking both to new Relative Price Score highs in recent weeks.RESULTS &amp; REVISION SCORE ▼ - The trend in Rescuit and the Peer Group's earning momentum since 2018 has been down, which COVID-19 has accelerated. In the DETAIL below,  we shall review Recruit's financial performance and valuation and assess if Recruit is a 'structural short'.

🇯🇵 JAPAN • Recruit (6098 JP) & The 'New Workforce Paradigm'

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. 

MARKET COMPOSITE
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/075/380/original/2019-01-13_13-31-55.png?1547353946" class="editor-image img-responsive" data-smartkarma-image-id="75380"></figure>
<div class="content-caption">Source: Japan Analytics</div>
NEW YEAR RALLY - From the December 25th's lows of 8% by number and 11% by value, the percentages of Japanese stocks above the weighted sum of moving averages have recovered to 14% by number and 20% by value - just on the 'buying zone' line. As we <a href="https://www.smartkarma.com/insights/japan-2018-market-review-bear-market-rally-ahead" target="_blank" data-smartkarma-citation="insights:26917">expected</a>, the Total Market Value has rallied 8.7% and looks to have some further to run, especially if the Yen reverses some of its recent strength. The Bank of Japan provided a 'helping hand' on both 4th and 10th January, the only days this year so far on which the market declined. 
<hr>
SECTORS
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/075/383/original/2019-01-13_15-22-47.png?1547360595" class="editor-image img-responsive" data-smartkarma-image-id="75383"></figure>
<div style="text-align: left;" class="content-caption">LEGEND: The 'sparklines' show the three-year trend in the weighted percentage above moving average relative to the Market Composite and the 'STDev' column is a measure of the variability of that relative measure. The table also provides averages for the breaks above and breaks below and the positive and negative crossovers.</div>
SECTOR BREAKDOWN - The top six sectors measured by the percentage above the weighted average of 5-240 Days remain, predictably, domestic and defensive - REITs, Information Technology, Media and Utilities continue from our previous review with Healthcare and Transportation replacing Food, Beverages and Tobacco and Internet Content &amp; Services. Equally predictable is the bottom half-dozen. Banks, Autos, Metals, Electrical Equipment, and Chemicals remain from 23rd December Moving Average Outliers <a href="https://www.smartkarma.com/insights/japan-moving-average-outliers-year-end-blues" target="_blank" data-smartkarma-citation="insights:26895">Insight</a>, with Building Materials replacing Non-Bank Finance. Over the last trading five days, however, there has been a noticeable reversal with Autos, Electrical Equipment, and Machinery all over '55' while Other Consumer Products, Restaurants, Telecommunications and Food, Beverages &amp; Tobacco are all below '40'.
<hr>
COMPANIES
COMPANY MOVING AVERAGE OUTLIERS - As with the market and sectors, our moving average outlier indicator uses a weighted sum of the share price relative to its 5-day, 20-day, 60-day, 120 day and 240-day moving averages. Extreme values are weighted sums greater than 100% and less than -100%. We would caution that this indicator is best used for timing shorter-term reversals and, in many cases, higher highs and lower lows will be seen. 
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/075/382/original/2019-01-13_15-19-43.png?1547360415" class="editor-image img-responsive" data-smartkarma-image-id="75382"></figure>
<div class="content-caption">Source: Japan Analytics</div>
THE +/-100% CLUB - The number of extreme negative outliers reached a peak for 1,352 on December 25th and has since returned to 'normal' levels. We suggested in the previous Insight in this series that such an extreme number of extremes was a signal of a short-term bottom, which, so far, has proved to be correct.
<div class="content-highlight">
In the DETAIL section below, we highlight the current top and bottom twenty-five larger capitalisation outliers as well as those companies that have seen the most significant positive and negative changes in their outlier percentage in the last two weeks and provide short comments on companies of particular note. 
</div>

MARKET COMPOSITE

Source: Japan Analytics
NEW YEAR RALLY - From the December 25th's lows of 8% by number and 11% by value, the percentages of Japanese stocks above the weighted sum of moving averages have recovered to 14% by number and 20% by value - just on the 'buying zone' line. As we expected, the Total Market Value has rallied 8.7% and looks to have some further to run, especially if the Yen reverses some of its recent strength. The Bank of Japan provided a 'helping hand' on both 4th and 10th January, the only days this year so far on which the market declined. 

SECTORS

LEGEND: The 'sparklines' show the three-year trend in the weighted percentage above moving average relative to the Market Composite and the 'STDev' column is a measure of the variability of that relative measure. The table also provides averages for the breaks above and breaks below and the positive and negative crossovers.
SECTOR BREAKDOWN - The top six sectors measured by the percentage above the weighted average of 5-240 Days remain, predictably, domestic and defensive - REITs, Information Technology, Media and Utilities continue from our previous review with Healthcare and Transportation replacing Food, Beverages and Tobacco and Internet Content &amp; Services. Equally predictable is the bottom half-dozen. Banks, Autos, Metals, Electrical Equipment, and Chemicals remain from 23rd December Moving Average Outliers Insight, with Building Materials replacing Non-Bank Finance. Over the last trading five days, however, there has been a noticeable reversal with Autos, Electrical Equipment, and Machinery all over '55' while Other Consumer Products, Restaurants, Telecommunications and Food, Beverages &amp; Tobacco are all below '40'.

COMPANIES
COMPANY MOVING AVERAGE OUTLIERS - As with the market and sectors, our moving average outlier indicator uses a weighted sum of the share price relative to its 5-day, 20-day, 60-day, 120 day and 240-day moving averages. Extreme values are weighted sums greater than 100% and less than -100%. We would caution that this indicator is best used for timing shorter-term reversals and, in many cases, higher highs and lower lows will be seen. 

Source: Japan Analytics
THE +/-100% CLUB - The number of extreme negative outliers reached a peak for 1,352 on December 25th and has since returned to 'normal' levels. We suggested in the previous Insight in this series that such an extreme number of extremes was a signal of a short-term bottom, which, so far, has proved to be correct.

In the DETAIL section below, we highlight the current top and bottom twenty-five larger capitalisation outliers as well as those companies that have seen the most significant positive and negative changes in their outlier percentage in the last two weeks and provide short comments on companies of particular note. 


Japan: Moving Average Outliers - New Year Rally

MARKET COMPOSITE<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/073/799/original/2018-12-22_16-48-37.png?1545464931" class="editor-image img-responsive" data-smartkarma-image-id="73799"></figure><div class="content-caption">Source: Japan Analytics</div>TRADING ZONE - As of last Friday, the Japan All Market Composite has now entered a bear market, having declined by 20% from the January 23rd high if Y757t. At the close, only 8% by number and 11% by value of Japanese stocks were trading above their weighted composite of 5, 20, 60, 120, and 240-day moving averages. These were the lowest closing values since February 2016 when the All Market Composite reached a low of Y475tand  offer an entry point for a short-term trade for those happy to hold over the extended New Year Holiday period.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/073/800/original/2018-12-22_16-49-53.png?1545465006" class="editor-image img-responsive" data-smartkarma-image-id="73800"></figure><div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/073/801/original/2018-12-22_16-52-17.png?1545465147" class="editor-image img-responsive" data-smartkarma-image-id="73801"></figure> Source: Japan Analytics</div>BREAKOUTS -  The 'Breaking Bad' percentage reached 11% on December 4th, the tenth-lowest reading in three years bu thas yet to fall below '-15-.  Adding the Breaking Above and Breaking Below percentages together provides a more straightforward view of the 15% threshold that has marked previous short and medium-term turning points, and which again we have yet to reach.<hr> SECTORS<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/073/804/original/2018-12-22_18-10-04.png?1545469815" class="editor-image img-responsive" data-smartkarma-image-id="73804"></figure><div style="text-align: left;" class="content-caption">LEGEND: The 'sparklines' show the three-year trend in the weighted percentage above moving average relative to the Market Composite and the 'STDev' column is a measure of the variability of that relative measure. The table also provides averages for the breaks above and breaks below and the positive and negative 'crossovers'.</div>SECTOR BREAKDOWN - The top six sectors measured by the percentage above the weighted average of 5-240 Days are all, predictably, domestic and defensive -  Food, Beverages &amp; Tobacco, REITs, Information Technology, Internet, Media and Utilities. Equally predictable are the bottom half-dozen - Banks, Non-Bank Finance, Autos, Metals, Electrical Equipment and Chemicals. <hr>COMPANIESCOMPANY MOVING AVERAGE OUTLIERS - As with the market and sectors, out moving average outlier indicator uses a weighted sum of the share price relative to its 5-day, 20-day, 60-day, 120 day and 240-day moving averages. Extreme values are weighted sums greater than 100% and less than -100%. We would caution that this indicator is best used for timing shorter-term reversals and, in many cases, higher highs and lower lows will be seen. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/073/816/original/2018-12-23_15-00-13.png?1545544826" class="editor-image img-responsive" data-smartkarma-image-id="73816"></figure><div class="content-caption">Source: Japan Analytics</div>THE 100% CLUB - As of Friday 21st, there were 16 extreme positive outliers and 622 extreme negative outliers. The number of extreme negative outliers suggests we are a short-term bottom.<div class="content-highlight">In the DETAIL section below, we highlight the current top and bottom twenty-five larger capitalisation outliers as well as those companies that have seen the most significant positive and negative changes in their outlier percentage in the last two weeks and provide short comments on companies of particular note. </div>

MARKET COMPOSITESource: Japan AnalyticsTRADING ZONE - As of last Friday, the Japan All Market Composite has now entered a bear market, having declined by 20% from the January 23rd high if Y757t. At the close, only 8% by number and 11% by value of Japanese stocks were trading above their weighted composite of 5, 20, 60, 120, and 240-day moving averages. These were the lowest closing values since February 2016 when the All Market Composite reached a low of Y475tand  offer an entry point for a short-term trade for those happy to hold over the extended New Year Holiday period.
 Source: Japan AnalyticsBREAKOUTS -  The 'Breaking Bad' percentage reached 11% on December 4th, the tenth-lowest reading in three years bu thas yet to fall below '-15-.  Adding the Breaking Above and Breaking Below percentages together provides a more straightforward view of the 15% threshold that has marked previous short and medium-term turning points, and which again we have yet to reach. SECTORSLEGEND: The 'sparklines' show the three-year trend in the weighted percentage above moving average relative to the Market Composite and the 'STDev' column is a measure of the variability of that relative measure. The table also provides averages for the breaks above and breaks below and the positive and negative 'crossovers'.SECTOR BREAKDOWN - The top six sectors measured by the percentage above the weighted average of 5-240 Days are all, predictably, domestic and defensive -  Food, Beverages &amp; Tobacco, REITs, Information Technology, Internet, Media and Utilities. Equally predictable are the bottom half-dozen - Banks, Non-Bank Finance, Autos, Metals, Electrical Equipment and Chemicals. COMPANIESCOMPANY MOVING AVERAGE OUTLIERS - As with the market and sectors, out moving average outlier indicator uses a weighted sum of the share price relative to its 5-day, 20-day, 60-day, 120 day and 240-day moving averages. Extreme values are weighted sums greater than 100% and less than -100%. We would caution that this indicator is best used for timing shorter-term reversals and, in many cases, higher highs and lower lows will be seen. Source: Japan AnalyticsTHE 100% CLUB - As of Friday 21st, there were 16 extreme positive outliers and 622 extreme negative outliers. The number of extreme negative outliers suggests we are a short-term bottom.In the DETAIL section below, we highlight the current top and bottom twenty-five larger capitalisation outliers as well as those companies that have seen the most significant positive and negative changes in their outlier percentage in the last two weeks and provide short comments on companies of particular note. 

Japan: Moving Average Outliers - Year-End Blues

Japan

OUTSOURCING Inc. provides outsourcing services for manufacturing companies. The Company mainly provides services for industries such as food, electric equipment, transport machine, chemical, and metal.  Outsourcing also provides worker dispatching service.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Outsourcing Inc (2427 JP)

Asia Shorts: Tencent, CM Bank, Wuxi Apptec, Baidu, Anritsu, Daito, Ana, Yang Ming, Evergreen Marine

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

Two Japanese High-Quality, Niche-Focused Recruitment Agents

We feel it way more difficult to pick between the two than set them apart from the larger crowd, but here is our No. 1 pick if we have to choose.

Urbem Capital

🇯🇵 JAPAN • Recruit (6098 JP) & The 'New Workforce Paradigm'

“I don’t believe BlackRock will be ever 100% back in [the[ office,” Fink told the Morningstar Investment Conference on Thursday, according to CNBC....

Campbell Gunn

Japan: Moving Average Outliers - New Year Rally

MARKET COMPOSITE NEW YEAR RALLY - From the December 25th's lows of 8% by number and 11% by value, the percentages of Japanese stocks above the...

Campbell Gunn

Japan: Moving Average Outliers - Year-End Blues

MARKET COMPOSITETRADING ZONE - As of last Friday, the Japan All Market Composite has now entered a bear market, having declined by 20% from the...

Campbell Gunn

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)