Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Big jump in US homebuilders and chemical names involved in PVC/housing should jump start Shin Etsu.</li>
<li>Toto increasing its US production capacity aligns with its pivot away from China and makes this more interesting as housing play.</li>
<li>Meta's huge capex spending plans not enough to satisfy its need for AI computing as it buys capacity from Google.</li>
</ul>


Big jump in US homebuilders and chemical names involved in PVC/housing should jump start Shin Etsu.
Toto increasing its US production capacity aligns with its pivot away from China and makes this more interesting as housing play.
Meta's huge capex spending plans not enough to satisfy its need for AI computing as it buys capacity from Google.


Japan Morning Connection: Japan Set to Rise with the Rhetoric from Powell More Dovish than Expected

<ul>
<li>AMAT pricing in weak numbers sent semi-cap lower, while Intel bought its gains to 23% for the week.</li>
<li>Housing name starting to cut through the daily static of Treasury moves as sentiment improves ahead of Sep cut.</li>
<li>Home improvement/suppliers such as Toto and Lixil may see increased interest as global rates outside of Japan trend lower.</li>
</ul>


AMAT pricing in weak numbers sent semi-cap lower, while Intel bought its gains to 23% for the week.
Housing name starting to cut through the daily static of Treasury moves as sentiment improves ahead of Sep cut.
Home improvement/suppliers such as Toto and Lixil may see increased interest as global rates outside of Japan trend lower.


Japan Morning Connection: Markets Calm with No Further Tariffs for China

<ul>
<li>Positive US-China talks and the de-escalation of tariffs signal a major softening by both sides.</li>
<li>Expect momentum favourites to continue climbing as risk-on greenlights CTA factor buying.</li>
<li>US Pharma rebounded with Trump executive order seen as toothless and vague.</li>
</ul>


Positive US-China talks and the de-escalation of tariffs signal a major softening by both sides.
Expect momentum favourites to continue climbing as risk-on greenlights CTA factor buying.
US Pharma rebounded with Trump executive order seen as toothless and vague.


Japan Morning Connection: Japan Tech and SPE to Continue Higher with Nasdaq100 Back in a Bull Mkt

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>Currently, 9 stocks could be deleted from global passive portfolios in February. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.</li>
<li>There has been a buildup on shorts on few stocks with minimal positioning in the other stocks. That could change once the calendar ticks over to 2025.</li>
<li>
<a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525 JP)</a> is a potential inclusion to the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> in March and this deletion could provide liquidity to enter a position ahead of that announcement.</li>
</ul>


Currently, 9 stocks could be deleted from global passive portfolios in February. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
There has been a buildup on shorts on few stocks with minimal positioning in the other stocks. That could change once the calendar ticks over to 2025.

Kokusai Electric (6525 JP) is a potential inclusion to the Nikkei 225 (NKY INDEX) in March and this deletion could provide liquidity to enter a position ahead of that announcement.


Japan: Potential Passive Selling in February

<ul>
<li>Tech strong despite market rotating out of NVDA, with EV related gaining on Cali plan.</li>
<li>Home builders surge on Bessent's nomination; expect a strong follow through for JP related plays.</li>
<li>Activists are on the hunt in Japan - how long before someone starts building a stake in Kyocera?</li>
</ul>


Tech strong despite market rotating out of NVDA, with EV related gaining on Cali plan.
Home builders surge on Bessent's nomination; expect a strong follow through for JP related plays.
Activists are on the hunt in Japan - how long before someone starts building a stake in Kyocera?


Japan Morning Connection: Time to Revisit the Most Bungled Conglomerate Left Standing?

Japan

TOTO LTD. manufactures and sells china and earthenware fittings and bathroom accessories.  The Company's products include ceramic toilet fixtures and sinks, bath tubs, dressers, and solar powered water heaters.

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

Toto Ltd (5332 JP)

Japan Morning Connection: Japan Set to Rise with the Rhetoric from Powell More Dovish than Expected

Housing stocks surged after Powell'a comments in Wyoming, Toto should benefit from this improved sentiment. Meta struck a deal with Google for AI...

Andrew Jackson

Japan Morning Connection: Markets Calm with No Further Tariffs for China

Housing sector sentiment improves and forecast to continue with rate cutting cycle ahead. Intel continued to outperform following the prospect of...

Andrew Jackson

Japan Morning Connection: Japan Tech and SPE to Continue Higher with Nasdaq100 Back in a Bull Mkt

US-China trade tensions ease as tariffs are de-escalated, resulting in risk-on buying across sectors. Should see improved sentiment for Japan...

Andrew Jackson

Japan: Potential Passive Selling in February

These 9 stocks continue to remain potential deletes in February along with 2 more now. There has been an increase in shorts as the stocks have, on...

Brian Freitas

Japan Morning Connection: Time to Revisit the Most Bungled Conglomerate Left Standing?

Tech strong despite market shift away from NVDA,. Home builders surge on Bessent's nomination, Kyocera ripe for activist involvement.

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Japan Set to Rise with the Rhetoric from Powell More Dovish than Expected

Housing stocks surged after Powell'a comments in Wyoming, Toto should benefit from this improved sentiment. Meta struck a deal with Google for AI...

Andrew Jackson

Japan Morning Connection: Markets Calm with No Further Tariffs for China

Housing sector sentiment improves and forecast to continue with rate cutting cycle ahead. Intel continued to outperform following the prospect of...

Andrew Jackson

Japan Morning Connection: Japan Tech and SPE to Continue Higher with Nasdaq100 Back in a Bull Mkt

​US-China trade tensions ease as tariffs are de-escalated, resulting in risk-on buying across sectors. Should see improved sentiment for Japan...

Andrew Jackson

Japan: Potential Passive Selling in February

These 9 stocks continue to remain potential deletes in February along with 2 more now. There has been an increase in shorts as the stocks have, on...

Brian Freitas

Japan Morning Connection: Time to Revisit the Most Bungled Conglomerate Left Standing?

​Tech strong despite market shift away from NVDA,. Home builders surge on Bessent's nomination, Kyocera ripe for activist involvement.

Andrew Jackson

US-China trade tensions ease as tariffs are de-escalated, resulting in risk-on buying across sectors. Should see improved sentiment for Japan...

Tech strong despite market shift away from NVDA,. Home builders surge on Bessent's nomination, Kyocera ripe for activist involvement.