Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Server related names higher after some big sales numbers and new product launches from SMCI should be a positive for Nidec</li>
<li>Watch for P&amp;C weakness in Japan following losses for peers overnight as Hurricane Milton intensifies as it approaches the Florida coast line</li>
<li>Oil back above $80 will continue to push related names higher; possible refiner pair with 4 days of TPX FFW selling for recent outperformer Idemitsu</li>
</ul>


Server related names higher after some big sales numbers and new product launches from SMCI should be a positive for Nidec
Watch for P&amp;C weakness in Japan following losses for peers overnight as Hurricane Milton intensifies as it approaches the Florida coast line
Oil back above $80 will continue to push related names higher; possible refiner pair with 4 days of TPX FFW selling for recent outperformer Idemitsu


Japan Morning Connection: Oil Through $80 While P&C Take a Hit on Hurricane Milton

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>A new COVID variant JN.1 is spreading fast. WHO has classified JN.1 as “variant of interest” due to its “rapidly increasing spread.” Thus far, JN.1 has not caused severe infection.</li>
<li>Symptoms of JN.1 may not be as mild as Omicron variants. If JN.1 becomes deadlier and more infectious, diagnostics and vaccine players are going to be benefitted primarily.</li>
<li>In this insight we have discussed two Asian vaccine companies and one diagnostic company, which should be kept in the watchlist.</li>
</ul>


A new COVID variant JN.1 is spreading fast. WHO has classified JN.1 as “variant of interest” due to its “rapidly increasing spread.” Thus far, JN.1 has not caused severe infection.
Symptoms of JN.1 may not be as mild as Omicron variants. If JN.1 becomes deadlier and more infectious, diagnostics and vaccine players are going to be benefitted primarily.
In this insight we have discussed two Asian vaccine companies and one diagnostic company, which should be kept in the watchlist.


New COVID Variant Is Emerging; Testing and Vaccine Euphoria May Be Back; Keep Your Watchlist Ready

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

EURO STOXX 50 Price EUR / Technical Analysis

<ul>
<li>Key support levels on global equity indexes (EURO STOXX 50, $ACWX, $EFA) are beginning to break as the U.S. dollar (DXY) and 10-year Treasury yield break above $105.70 and 4.35%.</li>
<li>This significantly increases the odds of a break below major $92-$93 support on $ACWI, and we would shift to a more cautious outlook only on a break below $92.</li>
<li>We shifted to overweight value within non-U.S. equities last week, and we are now also shifting to overweight small-caps within non-U.S. equities as well. Buys in Transportation, Communications, and HealthCare</li>
</ul>


Key support levels on global equity indexes (EURO STOXX 50, $ACWX, $EFA) are beginning to break as the U.S. dollar (DXY) and 10-year Treasury yield break above $105.70 and 4.35%.
This significantly increases the odds of a break below major $92-$93 support on $ACWI, and we would shift to a more cautious outlook only on a break below $92.
We shifted to overweight value within non-U.S. equities last week, and we are now also shifting to overweight small-caps within non-U.S. equities as well. Buys in Transportation, Communications, and HealthCare


Supports Starting to Break; Upgrading Non-U.S. Small-Caps to Overweight; Transports/Comm/HC Buys

Japan Specialist

Mark Chadwick

<ul>
<li>OVERSEAS. SPX rises as investors see end of Fed rate hike cycle; Investors continue to doubt the US bull market; China steps in again to support Real Estate market </li>
<li>JAPAN. NKY Futs +0.4% vs Cash; USJPY 141.3; "New" NISA eligible funds expand;  JP investors buy record foreign bonds in H1;  ON THE STREET:Mit Motors to BUY; Toyota to Neutral</li>
<li>NUGGET. Push for more women on boards continue in Japan - still lagging, but trend is up. Will it play out in valuations? Global Evidence Supportive.</li>
</ul>


OVERSEAS. SPX rises as investors see end of Fed rate hike cycle; Investors continue to doubt the US bull market; China steps in again to support Real Estate market 
JAPAN. NKY Futs +0.4% vs Cash; USJPY 141.3; "New" NISA eligible funds expand;  JP investors buy record foreign bonds in H1;  ON THE STREET:Mit Motors to BUY; Toyota to Neutral
NUGGET. Push for more women on boards continue in Japan - still lagging, but trend is up. Will it play out in valuations? Global Evidence Supportive.


Ohayo Japan| Fed Rate Hike End in Sight; NUGGET: More Women on Boards = Higher Valuations?

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/astellas-pharma-inc" target="_blank" data-smartkarma-citation="entities:6091:1" rel="noopener">Astellas Pharma (4503 JP)</a> reported 27% YoY revenue growth in Q1FY27. Core operating profit increased to ¥221.4B, up 56% YoY driven by cost optimization through sustainable margin transformation program.</li>
<li>Strategic brands (Padcev, Izervay, Veozah, Vyloy, Xospata), which recorded underlying growth of 43% YoY and contributed 25% of revenue, drove overall revenue growth.</li>
<li>Astellas reiterated FY27 guidance where they expect FY27 revenue to be ¥2,220B (up 3.8% YoY), core operating profit of ¥620B (up 11.6% YoY) and core profit of ¥460B (+8.4% YoY).</li>
</ul>



Astellas Pharma (4503 JP) reported 27% YoY revenue growth in Q1FY27. Core operating profit increased to ¥221.4B, up 56% YoY driven by cost optimization through sustainable margin transformation program.
Strategic brands (Padcev, Izervay, Veozah, Vyloy, Xospata), which recorded underlying growth of 43% YoY and contributed 25% of revenue, drove overall revenue growth.
Astellas reiterated FY27 guidance where they expect FY27 revenue to be ¥2,220B (up 3.8% YoY), core operating profit of ¥620B (up 11.6% YoY) and core profit of ¥460B (+8.4% YoY).


Astellas Pharma (4503 JP): Growth Momentum Intact in Q1; FY27 Guidance Reiterated

Japan

Shionogi & Company Ltd., is a pharmaceutical company. The Company develops prescription & over-the-counter drugs and diagnostics.

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Shionogi & Co (4507 JP)

Japan Morning Connection: Oil Through $80 While P&C Take a Hit on Hurricane Milton

Positive sales numbers and new product launches from SMCI could benefit Nidec; P&C weakness expected due to Hurricane Milton; Oil above $80...

Andrew Jackson

New COVID Variant Is Emerging; Testing and Vaccine Euphoria May Be Back; Keep Your Watchlist Ready

A new COVID variant, JN.1, is spreading rapidly and has been classified as a "variant of interest" by WHO. If it becomes deadlier, vaccine and...

Tina Banerjee

Supports Starting to Break; Upgrading Non-U.S. Small-Caps to Overweight; Transports/Comm/HC Buys

Support levels on global indexes (EURO STOXX 50, $ACWX, $EFA) beginning to break as $DXY and 10-year Treasury yield $TNX break above $105.70 and...

Vermilion Research

Ohayo Japan| Fed Rate Hike End in Sight; NUGGET: More Women on Boards = Higher Valuations?

SPX gains as end of Fed hike cycle in sight; NKY Futs +0.4% vs Cash; USJPY 141.3; "New" NISA eligible funds expand; JP investors buy record...

Mark Chadwick

Astellas Pharma (4503 JP): Growth Momentum Intact in Q1; FY27 Guidance Reiterated

Astellas Pharma sees strong revenue growth in Q1FY27, driven by strategic brands and cost optimization, reiterates FY27 guidance with positive...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

Japan Morning Connection: Oil Through $80 While P&C Take a Hit on Hurricane Milton

​Positive sales numbers and new product launches from SMCI could benefit Nidec; P&C weakness expected due to Hurricane Milton; Oil above $80...

Andrew Jackson

New COVID Variant Is Emerging; Testing and Vaccine Euphoria May Be Back; Keep Your Watchlist Ready

​A new COVID variant, JN.1, is spreading rapidly and has been classified as a "variant of interest" by WHO. If it becomes deadlier, vaccine and...

Tina Banerjee

Supports Starting to Break; Upgrading Non-U.S. Small-Caps to Overweight; Transports/Comm/HC Buys

Support levels on global indexes (EURO STOXX 50, $ACWX, $EFA) beginning to break as $DXY and 10-year Treasury yield $TNX break above $105.70 and...

Vermilion Research

Ohayo Japan| Fed Rate Hike End in Sight; NUGGET: More Women on Boards = Higher Valuations?

SPX gains as end of Fed hike cycle in sight; NKY Futs +0.4% vs Cash; USJPY 141.3; "New" NISA eligible funds expand; JP investors buy record...

Mark Chadwick

Astellas Pharma (4503 JP): Growth Momentum Intact in Q1; FY27 Guidance Reiterated

​Astellas Pharma sees strong revenue growth in Q1FY27, driven by strategic brands and cost optimization, reiterates FY27 guidance with positive...

Tina Banerjee

Positive sales numbers and new product launches from SMCI could benefit Nidec; P&C weakness expected due to Hurricane Milton; Oil above $80...

A new COVID variant, JN.1, is spreading rapidly and has been classified as a "variant of interest" by WHO. If it becomes deadlier, vaccine and...

Astellas Pharma sees strong revenue growth in Q1FY27, driven by strategic brands and cost optimization, reiterates FY27 guidance with positive...