Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>SOX up ~80% this quarter, one of its biggest ever gains, making quarter-end profit-taking a real risk for high-flying AI names over the next two sessions.</li>
<li>Rohm, Fuji Elec, Renesas and Sanken likely to open weak after Onsemi -24% taken as a warning that there isn’t much upside for power/industrial makers in the DC arena.</li>
<li>European heatwave puts Daikin, Mitsubishi Electric and Panasonic A/C names in focus as a potential distraction from AI volatility into quarter end.</li>
</ul>


SOX up ~80% this quarter, one of its biggest ever gains, making quarter-end profit-taking a real risk for high-flying AI names over the next two sessions.
Rohm, Fuji Elec, Renesas and Sanken likely to open weak after Onsemi -24% taken as a warning that there isn’t much upside for power/industrial makers in the DC arena.
European heatwave puts Daikin, Mitsubishi Electric and Panasonic A/C names in focus as a potential distraction from AI volatility into quarter end.


Japan Morning Connection: AI Names Increasingly Volatile with SOX Reversal and Quarter-End Pressure

Japan Specialist

Mark Chadwick

<ul>
<li>AI enthusiasm cooled as investors rotated out of the most richly valued technology names, favouring companies with visible earnings upgrades, governance catalysts and more resilient valuations. </li>
<li>Fujikura and J. Front Retailing outperformed for very different reasons, highlighting a market increasingly rewarding execution, capital allocation and stock-specific catalysts over broad themes. </li>
<li>With inflation firming and the BOJ edging towards further tightening, valuation discipline is re-emerging as a key driver of Japanese equity performance.</li>
</ul>


AI enthusiasm cooled as investors rotated out of the most richly valued technology names, favouring companies with visible earnings upgrades, governance catalysts and more resilient valuations. 
Fujikura and J. Front Retailing outperformed for very different reasons, highlighting a market increasingly rewarding execution, capital allocation and stock-specific catalysts over broad themes. 
With inflation firming and the BOJ edging towards further tightening, valuation discipline is re-emerging as a key driver of Japanese equity performance.


Japan Strategy Weekly | the AI Trade Grows More Selective

<ul>
<li>Should still be more upside after Micron’s AH numbers yesterday with many Japanese SPE names still a ways from their recent highs after correcting earlier in the week.</li>
<li>Still yet to see Furukawa, SEI and SWCC play catch up to Fujikura after strong guidance revision this week.</li>
<li>A negative read for JP game developers such as Nintendo and Sony after Microsoft announced price hikes for its Xbox.</li>
</ul>


Should still be more upside after Micron’s AH numbers yesterday with many Japanese SPE names still a ways from their recent highs after correcting earlier in the week.
Still yet to see Furukawa, SEI and SWCC play catch up to Fujikura after strong guidance revision this week.
A negative read for JP game developers such as Nintendo and Sony after Microsoft announced price hikes for its Xbox.


Japan Morning Connection: Room to Run with SPEs Still Below Recent Highs

<ul>
<li>Kioxia set for a strong day as Micron signs strategic partnership with Anthropic and BofA hikes TP pulling memory names higher.</li>
<li>Power semis Fuji Electric, Rohm and Renesas set for a good day after Onsemi +8.2% and broader industrial semi strength overnight.</li>
<li>SWCC may catch a bid after being upgraded to buy by Mizuho overnight.</li>
</ul>


Kioxia set for a strong day as Micron signs strategic partnership with Anthropic and BofA hikes TP pulling memory names higher.
Power semis Fuji Electric, Rohm and Renesas set for a good day after Onsemi +8.2% and broader industrial semi strength overnight.
SWCC may catch a bid after being upgraded to buy by Mizuho overnight.


Japan Morning Connection: QD Laser Set to Continue Gains as Details Emerge on Partnership with TDK

<ul>
<li>Fujikura raises FY OP guidance by 47% on strong optical component orders.</li>
<li>Intel suppliers Lasertec +40%, Ibiden +41% and TEL +20% over last 5 days set for further gains on Intel Apple deal news.</li>
<li>Rohm, Renesas and Fuji Electric set for further upside after Wolfspeed jumps on datacentre demand comments.</li>
</ul>


Fujikura raises FY OP guidance by 47% on strong optical component orders.
Intel suppliers Lasertec +40%, Ibiden +41% and TEL +20% over last 5 days set for further gains on Intel Apple deal news.
Rohm, Renesas and Fuji Electric set for further upside after Wolfspeed jumps on datacentre demand comments.


Japan Morning Connection: War End and Intel Apple Deal Send Optical and Semi Names Surging

Japan

SoftBank Group Corp provides telecommunication services.  The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (ADR) (SFTBY US)

Japan Morning Connection: AI Names Increasingly Volatile with SOX Reversal and Quarter-End Pressure

Japanese AI and semi names face a rocky quarter end with power/industrial stocks, memory names and Softbank all under pressure, while A/C names may...

Andrew Jackson

Japan Strategy Weekly | the AI Trade Grows More Selective

Investors shifting focus from AI to companies with visible earnings upgrades and resilient valuations in Japanese equity market as inflation firms...

Mark Chadwick

Japan Morning Connection: Room to Run with SPEs Still Below Recent Highs

Japanese SPEs have room to run as AI rally yet to be fully priced in, with relative s/t laggards including Lasertec, TEL and Resonac.

Andrew Jackson

Japan Morning Connection: QD Laser Set to Continue Gains as Details Emerge on Partnership with TDK

QD Laser limit up yesterday and set to build on gains as TDK XR glasses partnership details emerge and Retissa Viewclear featured on TV Tokyo.

Andrew Jackson

Japan Morning Connection: War End and Intel Apple Deal Send Optical and Semi Names Surging

War end and oil falling to send Japan's optical and semi names surging higher. Memory hits new ATHs while Intel suppliers set for even more gains...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: AI Names Increasingly Volatile with SOX Reversal and Quarter-End Pressure

Japanese AI and semi names face a rocky quarter end with power/industrial stocks, memory names and Softbank all under pressure, while A/C names may...

Andrew Jackson

Japan Strategy Weekly | the AI Trade Grows More Selective

​Investors shifting focus from AI to companies with visible earnings upgrades and resilient valuations in Japanese equity market as inflation firms...

Mark Chadwick

Japan Morning Connection: Room to Run with SPEs Still Below Recent Highs

Japanese SPEs have room to run as AI rally yet to be fully priced in, with relative s/t laggards including Lasertec, TEL and Resonac.

Andrew Jackson

Japan Morning Connection: QD Laser Set to Continue Gains as Details Emerge on Partnership with TDK

QD Laser limit up yesterday and set to build on gains as TDK XR glasses partnership details emerge and Retissa Viewclear featured on TV Tokyo.

Andrew Jackson

Japan Morning Connection: War End and Intel Apple Deal Send Optical and Semi Names Surging

War end and oil falling to send Japan's optical and semi names surging higher. Memory hits new ATHs while Intel suppliers set for even more gains...

Andrew Jackson

Investors shifting focus from AI to companies with visible earnings upgrades and resilient valuations in Japanese equity market as inflation firms...