Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Japanese equities underperformed US markets this week, experiencing a sharp sector rotation as semiconductor stocks surged while previous momentum leaders suffered significant profit-taking.</li>
<li>Despite firm domestic consumption and credit growth, Japan faces mounting pressure from rising producer inflation and business sentiment declines driven by global geopolitical conflicts.</li>
<li>The Bank of Japan faces a difficult dilemma, weighing the need for further monetary tightening in spite of risks of economic slowdown.</li>
</ul>


Japanese equities underperformed US markets this week, experiencing a sharp sector rotation as semiconductor stocks surged while previous momentum leaders suffered significant profit-taking.
Despite firm domestic consumption and credit growth, Japan faces mounting pressure from rising producer inflation and business sentiment declines driven by global geopolitical conflicts.
The Bank of Japan faces a difficult dilemma, weighing the need for further monetary tightening in spite of risks of economic slowdown.


Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>Yesterday's holdouts Screen +4.2% and TEL +3.2% likely next in line as AI derate spreads.</li>
<li>Softbank -8.3% yesterday as talks to raise $6bn margin loan backed by its OpenAI stake reportedly stall.</li>
<li>MLCC names Taiyo Yuden and Murata finally give up the ghost and likely to continue lower with the unlimited upside spell shattered.</li>
</ul>


Yesterday's holdouts Screen +4.2% and TEL +3.2% likely next in line as AI derate spreads.
Softbank -8.3% yesterday as talks to raise $6bn margin loan backed by its OpenAI stake reportedly stall.
MLCC names Taiyo Yuden and Murata finally give up the ghost and likely to continue lower with the unlimited upside spell shattered.


Japan Morning Connection: AI Derate Continues and Recent Intel Winners Face Capitulation

<ul>
<li>Ibiden -27% since start of month but set to recover as Intel wins Google TPU deal. TEL, Lasertec, Screen and TOK also set for a stronger session.</li>
<li>Fujikura and peers should be helped by Corning's multi-billion dollar Amazon optical fiber deal.</li>
<li>Softbank -23% since start of month looking attractive as OpenAI formally announces IPO plans.</li>
</ul>


Ibiden -27% since start of month but set to recover as Intel wins Google TPU deal. TEL, Lasertec, Screen and TOK also set for a stronger session.
Fujikura and peers should be helped by Corning's multi-billion dollar Amazon optical fiber deal.
Softbank -23% since start of month looking attractive as OpenAI formally announces IPO plans.


Japan Morning Connection: Ibiden Set to Recover as Intel Wins Google TPU Deal

<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

<ul>
<li>Kioxia likely to keep moving higher after yesterday's limit-up on its knockout numbers.</li>
<li>Seagate CEO refusing to add production capacity being read as a sign that memory demand may be nearing a top.</li>
<li>QD Laser +23% yesterday on increased adoption of its Retissa Viewclear retinal projection display.</li>
</ul>


Kioxia likely to keep moving higher after yesterday's limit-up on its knockout numbers.
Seagate CEO refusing to add production capacity being read as a sign that memory demand may be nearing a top.
QD Laser +23% yesterday on increased adoption of its Retissa Viewclear retinal projection display.


Japan Morning Connection: Software Rotation Continues with NEC and Fujitsu Set to Outperform

Japan

SCREEN Holdings Co Ltd.  manufactures and sell semiconductors, FPD devices, commercial printing and printed circuit boards(PCB). The company also provides additional services for its products.

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SCREEN Holdings (7735 JP)

Japan Strategy Weekly | Sector Rotation

Japanese equities struggled this week with sector rotation and profit-taking, as rising producer inflation and global conflicts weigh on business...

Mark Chadwick

Japan Morning Connection: AI Derate Continues and Recent Intel Winners Face Capitulation

Another risk-off day for tech and AI as the market grapples with the deteriorating situation in Iran as well as uncertainty over what the SpaceX...

Andrew Jackson

Japan Morning Connection: Ibiden Set to Recover as Intel Wins Google TPU Deal

Intel's Google TPU win may lift Ibiden, while Corning's Amazon deal may help Fujikura recover. Panasonic could see a lift on AI infrastructure plans.

Andrew Jackson

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

Japan Morning Connection: Software Rotation Continues with NEC and Fujitsu Set to Outperform

Software rotation continues as tech remains under pressure. Kioxia the lone bright spot as other memory names show no follow through. QD Laser...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Strategy Weekly | Sector Rotation

​Japanese equities struggled this week with sector rotation and profit-taking, as rising producer inflation and global conflicts weigh on business...

Mark Chadwick

Japan Morning Connection: AI Derate Continues and Recent Intel Winners Face Capitulation

Another risk-off day for tech and AI as the market grapples with the deteriorating situation in Iran as well as uncertainty over what the SpaceX...

Andrew Jackson

Japan Morning Connection: Ibiden Set to Recover as Intel Wins Google TPU Deal

Intel's Google TPU win may lift Ibiden, while Corning's Amazon deal may help Fujikura recover. Panasonic could see a lift on AI infrastructure plans.

Andrew Jackson

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

Japan Morning Connection: Software Rotation Continues with NEC and Fujitsu Set to Outperform

Software rotation continues as tech remains under pressure. Kioxia the lone bright spot as other memory names show no follow through. QD Laser...

Andrew Jackson

Japanese equities struggled this week with sector rotation and profit-taking, as rising producer inflation and global conflicts weigh on business...