Thematic (Sector/Industry)

The S&P 500 gained 0.38% to 6,045, sitting less than 2% from its record high
Oracle surged 13% after beating earnings expectations and forecasting cloud infrastructure revenue growth exceeding 70% in fiscal 2026, driven by AI demand
3D Investment Partners, a Singapore-based activist fund, increased its Square Enix stake to 9.79%

Quick Note: 1M HIBOR Decline by 300bps – Implications for Hong Kong Real Estate

By Jacob Cheng

1M HIBOR has declined by 300bps to 0.6%, which is a sharp decline. Mortgage rate, which is tied to HIBOR, will have to be adjusted downward
Mortgage rate declines, affordability will improve, and there is positive carry. Developers will enjoy lower borrow cost and better earnings. 100bps change in rates leads to 2% earnings impact
However, the HIBOR decline can reverse, if capital flow changes and affects HKMA’s aggregate balance. US/China interest rate movements and geo-political risks also have to be monitored closely

The Stocks to Own in ASEAN – Vol. 51

By Dr. Andrew Stotz, CFA

We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
Portfolio changes: Five stocks remain, nine stocks added into portfolio
Since its inception, the portfolio has generated a before-fee total return of 264% versus MSCI ASEAN’s 46%

The Stocks to Own in Asia – Vol. 49

By Dr. Andrew Stotz, CFA

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Portfolio changes: All fourteen stocks have changed in the portfolio
Since its inception, it has generated a before-fee total return of 262% versus the MSCI Asia ex Japan of 110%

Japan Morning Connection: Air India Crash Sends Boing Lower, AMD’s AI Event Fails to Impress

Oracle’s good numbers pulling AI and DC related names up, while Samsung failing its NVDA HBM certification (again) positive for Micron.
Tencent is back at the table looking to bid for Nexon, whose outstanding short interest could see a rapid squeeze.
All the good news out for Konami? Looks like it after their even last night with further upside catalysts lacking.

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Jun 12

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Oil Surges on Mideast Tensions and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Oil Surges on Mideast Tensions
Japan Morning Connection: Rumors Micron May Lift DDR4 Prices Lifts Sentiment for All Things Memory
China’s Banks: The Quiet Bull Market No One’s Watching
#161 India Insights: India Eyes Rare Earth Push; IndusInd’s Prerequisites from RBI, Insulin Scale Up
[Blue Lotus Daily]:1211 HK/LI US/ NIO US/XPEV US/1810 HK/CHA US/2589 HK/2555 HK/Macro
Rare Earth Export Curbs from China: Assessing the Risk for India’s Auto Industry
[Blue Lotus Daily-TMT Update]:700 HK/1439927D CH/1024 HK/BABA US/1211 HK/3690 HK/1519 HK/E-Commerce

Ohayo Japan | Oil Surges on Mideast Tensions

Stocks ended lower Wednesday as the S&P 500 slipped 0.27% to 6,022; weaker-than-expected May inflation data
U.S. crude surged over 5% following reports of a planned partial evacuation of the U.S. embassy in Iraq amid growing Middle East tensions.
Treasury Secretary Bessent said the U.S. will likely extend tariff pause for countries negotiating in good faith, amid ongoing trade talks and deals.

Japan Morning Connection: Rumors Micron May Lift DDR4 Prices Lifts Sentiment for All Things Memory

Intel relief rally didn’t last, but Broadcom rebounded after a week of selling despite Apple weakness.
Oracle is 7% in late-trading after posting very bullish cloud and cloud infra guidance.
Record sales for Nintendo’s Switch2 console not enough to keep stock moving higher.

China’s Banks: The Quiet Bull Market No One’s Watching

By Rikki Malik

The stealth bull market in HK listed Chinese banks continues.
While the negatives are well known, the positives are underappreciated
We tweak the basket of bank stocks after they report Q1 results

#161 India Insights: India Eyes Rare Earth Push; IndusInd’s Prerequisites from RBI, Insulin Scale Up

By Sudarshan Bhandari

India aims to localize rare earth magnet production to protect its EV and tech sectors, reduce import reliance, and support long-term industrial and investment growth.
Hinduja Group must meet key conditions set by RBI for capital infusion in Indusind Bank (IIB IN) , including revocation of pledged shares and appointing board representatives.
Biocon Ltd (BIOS IN) , Eris Lifesciences (ERIS IN) , Wockhardt Ltd (WPL IN) scale up insulin output and capturing new growth in diabetes and obesity care markets.

[Blue Lotus Daily]:1211 HK/LI US/ NIO US/XPEV US/1810 HK/CHA US/2589 HK/2555 HK/Macro

By Eric Wen

Macro: Central Government Focuses on Improving People’s Livelihoods to Stimulate Consumption, But Short-term Impact Unlikely(+)
Macro: Our Take on the Chinese Government Housing Provident Fund 2024 Annual Report(/)
1211 HK/LI US/ NIO US/XPEV US/1810 HK: 2025 June 2 – June 8 NEV Delivery Rankings(/)

Rare Earth Export Curbs from China: Assessing the Risk for India’s Auto Industry

India’s automotive sector is facing a new external risk: China’s recent tightening of rare earth element (REE) export restrictions.
While the short-term impact appears contained, particularly for ICE 2Ws/3Ws, passenger vehicles—both ICE and EV—are the most exposed
Indian OEMs are actively engaging with Chinese authorities and India’s Ministry of External Affairs to seek interim solutions, and a resolution is expected within 2–3 weeks.

[Blue Lotus Daily-TMT Update]:700 HK/1439927D CH/1024 HK/BABA US/1211 HK/3690 HK/1519 HK/E-Commerce

By Ying Pan

700 HK: Tencent First Reveals Its Open-World ACGN Game <Return to the Loop>(+)
1439927D CH/1024 HK:ByteDance to Launch New DouBao Video Generation Model Tomorrow (+/-)
1439927D CH: ByteDance Announces Expansion of TikTok Investment in the UK (+)

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Jun 11

Daily Brief Thematic (Sector/Industry): No and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

No, Hong Kong Won’t Abandon The Peg
Ohayo Japan | Wall Street Rises on Trade Optimism
Charted Insights: Capex Revival in India Inc; Which Sectors Are Leading the Investment Cycle?
Japan Morning Connection: Trump Signals End to Biden Greenhouse Gas Emission Restrictions
Biopharma Week in Review Large M&A and Licensing Deals Provide a Boost
Furniture/Furnishings Weekly – GenAI Adoption Rates
Sustainable Investing Surveyor Focus on Aemetis (AMTX)

No, Hong Kong Won’t Abandon The Peg

By David Blennerhassett

A Bloomberg op-ed piece on the 5th June concludes it is time to move on from “from an archaic currency regime“. That conclusion appears presumptuous. And uninformed.
A key tenent of this piece is that HK’s benchmark interest rates are (or were) significantly – and stubbornly – lower than US rates. Yet this “anomaly” is easily explained.
The article fails to discuss the impact from CATL (3750 HK)‘s IPO on the peg; and even what would replace the peg (IF it were replaced).

Ohayo Japan | Wall Street Rises on Trade Optimism

Stocks rose Tuesday as optimism over U.S.-China trade talks; S&P 500 advanced 0.55% and the Nasdaq climbed 0.63%
Toyota and Daimler Truck have signed a business integration agreement for their subsidiaries Hino Motors and Mitsubishi Fuso Truck and Bus Corporation.
Honda will invest in Rapidus to secure domestically produced cutting-edge semiconductors for next-generation vehicles

Charted Insights: Capex Revival in India Inc; Which Sectors Are Leading the Investment Cycle?

Corporate India’s capex momentum is showing a healthy revival, marking a significant shift from the risk-averse investment behavior seen post-COVID.
Based on FY25 data from 1,393 listed companies (excluding banks and NBFCs), total gross fixed assets rose 7.6% year-on-year to ₹28.5 lakh crore – the strongest expansion in recent years.
This increase signals renewed investment intent across infrastructure, manufacturing, and select consumption-facing sectors

Japan Morning Connection: Trump Signals End to Biden Greenhouse Gas Emission Restrictions

Hydrocarbon related names traded well with Trump set to remove limits on carbon and mercury emissions…watch MHI, Yokogawa and Chiyoda.
Intel +7.8% may help Ibiden, Micron +2.9% positive for Micronics, while semi-cap and power-semi’s continued to move up.
Lock-Up expiry for Kioxia fast approaching could see shorts increase in a Kokusai Elec type situation.

Biopharma Week in Review Large M&A and Licensing Deals Provide a Boost

M&A and deal activity provided a much-needed tailwind for biotech last week.
Exiting a positive, but mostly expected, ASCO weekend, we witnessed the second-largest biotech acquisition in 2025, with SNY buying BPMC for $9.1 billion, and a mega-licensing deal, as BMY will pay up to $11.1 billion for co- rights to BNTX’s PD-1/VEGF (read-across to TIL, SMMT, PFE, MRK).
Gene and cell therapy (NTLA, BEAM, CRSP) got a boost, as the heads of the HHS, FDA, CBER, NIH, and CDC expressed support for faster rare disease approvals at an FDA roundtable.

Furniture/Furnishings Weekly – GenAI Adoption Rates

Risk on as markets anticipate progress on trade deals.
The WTR Commercial/Contract Furniture Index gained 1.8%, the Residential Manufacturers & Suppliers Index was up 3.1%, and the Home Goods Retailers Index increased 2.5%, while the large- cap indices gained 1.1% and the R2K was up 3.0%.
GenAI discussions on quarterly earnings calls are taking off as the technology (and adoption rates) continues to advance at a rapid clip (1), at least for the S&P 500 (Figure 1).

Sustainable Investing Surveyor Focus on Aemetis (AMTX)

The WTR Sustainable Index was up 1.8% W/W versus the S&P 500 Index (up 1.5%), the Russell 2000 Index (up 3.2%), and the Nasdaq Index (up 2.0%).
Energy Technology (12.8% of the index) was up 5.2%, while Industrial Climate and Ag Technology (47.9% of the index) was up 1.9%, ClimateTech Mining was up 0.1%, and Advanced Transportation Solutions (21.0% of the index) was up 1.3%.
Top 10 Performers: LEV, SPWR, BNRG, LOOP, VVPR, IRBT, FCEL, TGEN, FNI, ZAPP

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Jun 10

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Markets Mixed as U.S.-China Talks Begin and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Markets Mixed as U.S.-China Talks Begin
US Banks – Loan Loss Reserves Stagnating On Weekly Basis, Indicator of Benign Credit Metrics
Low Critical Metal Prices Affect Capital Raising Strategies of Resource Developers
Thematic Report : Impact of Rate Cuts on Profitability of NBFCs and HFCs in India
Monday Delight: 09/06/25
#160 India Insight: Adani Energy ₹6K Cr+ Inv, Tata Apple Repair, Maruti Suzuki Solar Boost
US EV Charging Infrastructure Tracker – May 2025

Ohayo Japan | Markets Mixed as U.S.-China Talks Begin

Markets posted mixed results Monday as U.S.-China trade talks commenced in London
Semiconductor stocks rallied, led by Qualcomm surging over 4% on its $2.4 billion Alphawave acquisition
Microsoft unveiled its first Xbox-branded handheld gaming devices, the ROG Xbox Ally

US Banks – Loan Loss Reserves Stagnating On Weekly Basis, Indicator of Benign Credit Metrics

By Daniel Tabbush

US banks HFD in Fed H8 weekly release suggests strong income for US banks
LLR stagnating weekly basis for a long time, suggesting little incremental credit costs
LDR also expanding, with low growth of high costs deposits, 2Q25 profit can be strong

Low Critical Metal Prices Affect Capital Raising Strategies of Resource Developers

On the latest WTR Small-Cap Spotlight, we were joined by Howard Klein, Founder of RK Equity and a leading lithium industry expert, to discuss the current state of the critical metal markets, the impact of low metal prices on public company valuations, and challenges both public and private resource developers are experiencing in raising capital required to move mining projects into commercial production.
Lower metal prices constrain the ability to use equity to raise capital.
The persistently low prices of lithium, nickel, cobalt, and graphite, among others, in the wake of the post- destocking price bubble have resulted in lower stock prices of metal miners, processors, and developers.

Thematic Report : Impact of Rate Cuts on Profitability of NBFCs and HFCs in India

During rate cut cycle, NBFCs with a higher proportion of floating-rate liabilities & a relatively lower proportion of floating-rate assets are poised to experience an expansion in their profitability.
This insight analyzes the asset-liability profiles of select Vehicle Financiers, Prime HFCs, and Affordable HFCs to identify their sensitivity to interest rate movements
Overall, NBFCs expect the benefit of the rate cut to have a lagged effect from H2FY26, leading expansion in NIM and overall profitability

Monday Delight: 09/06/25

By Contrarian Cashflows

This is your Monday morning dose of inspiration. Each week, I’ll share five intriguing investment ideas that recently caught my attention.
These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.
Because these ideas are the result of my first-level idea generation process, they require more in depth research.

#160 India Insight: Adani Energy ₹6K Cr+ Inv, Tata Apple Repair, Maruti Suzuki Solar Boost

By Sudarshan Bhandari

Adani Energy Solutions (ADANIT IN) plans INR 6,000 crore investment in centralised cooling, launching India’s largest facility at Mundra and expanding aggressively across sectors with CaaS model.
Apple (AAPL US) appoints Tata to handle iPhone and MacBook repairs in India, reflecting growing confidence and Tata’s expanding role in Apple’s supply chain.
Maruti Suzuki India (MSIL IN) plans Rs 925 crore investment to expand solar capacity to 319 MWp by 2031, aligning with India’s renewable energy goals and sustainable growth.

US EV Charging Infrastructure Tracker – May 2025

By Garvit Bhandari

Total public EV charging stations (incl. temporary unavailable locations) were 77,646 as of May 31, 2025. Compared to the end of FY24, it is an increase of 3.5%.
Total EV charging ports (including the temporary unavailable ports) were 221,045, up nearly 6.9% compared to the end of 2024 and up 0.4% over April 2025
California has the highest number of active DC Fast ports as of May 2025 at 14,499 (~26% of the total), followed by Texas at 3,757.

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Jun 09

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Stocks up on Jobs Data and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Stocks up on Jobs Data
Japan Morning Connection: Meta’s $10bn Scale AI Investment to Buoy Sentiment for SPE

Ohayo Japan | Stocks up on Jobs Data

US stocks rallied Friday after stronger-than-expected nonfarm payrolls data eased slowdown fears
Fifty Japanese companies received activist proposals at June shareholder meetings, the highest number on record,
Takeda Pharmaceutical faces opposition from Institutional Shareholder Services (ISS) against reappointing CEO

Japan Morning Connection: Meta’s $10bn Scale AI Investment to Buoy Sentiment for SPE

NFP beat sends yields higher, sending US homebuilders down, positive JP banks.
Big week for Renesas should also see more upside for Rohm and Fuji Elec with Auto/industrial inflection.
Capcom announced its latest Resident Evil installment at the SGF, but further upside looks limited.

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Jun 09

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Stocks up on Jobs Data and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Stocks up on Jobs Data
Japan Morning Connection: Meta’s $10bn Scale AI Investment to Buoy Sentiment for SPE

Ohayo Japan | Stocks up on Jobs Data

US stocks rallied Friday after stronger-than-expected nonfarm payrolls data eased slowdown fears
Fifty Japanese companies received activist proposals at June shareholder meetings, the highest number on record,
Takeda Pharmaceutical faces opposition from Institutional Shareholder Services (ISS) against reappointing CEO

Japan Morning Connection: Meta’s $10bn Scale AI Investment to Buoy Sentiment for SPE

NFP beat sends yields higher, sending US homebuilders down, positive JP banks.
Big week for Renesas should also see more upside for Rohm and Fuji Elec with Auto/industrial inflection.
Capcom announced its latest Resident Evil installment at the SGF, but further upside looks limited.

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Jun 08

Daily Brief Thematic (Sector/Industry): Japan Weekly | Geopolitics Rule as Semis Shine and Autos Stumble and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Japan Weekly | Geopolitics Rule as Semis Shine and Autos Stumble
APAC Healthcare Weekly (June 8)- Hansoh Pharma, Daiichi Sankyo, Takeda, Mayne Pharma, Zydus Life

Japan Weekly | Geopolitics Rule as Semis Shine and Autos Stumble

Japanese equities dipped as geopolitical tensions weighed on autos, though semiconductor stocks surged after Nvidia regained its crown as top global firm.
Japan’s Q1 capex jumped 6.4% amid pre-tariff investment, but weak household spending and falling real wages signaled persistent domestic demand fragility.
Toyota Industries fell 10% after unveiling a privatization plan priced below market expectations, raising investor governance concerns despite likely deal approval.

APAC Healthcare Weekly (June 8)- Hansoh Pharma, Daiichi Sankyo, Takeda, Mayne Pharma, Zydus Life

By Tina Banerjee

Hansoh Pharmaceutical stuck outlicense agreement with Regeneron Pharmaceuticals for GLP-1 drug candidate for an upfront payment of $80M. Daiichi Sankyo unveiled positive phase 3 trial result in first-line breast cancer.
Takeda received European approval for Adcetris as a chemotherapy regimen in Hodgkin lymphoma. Zydus Lifesciences is acquiring 5.9% stake in Agenus and commercial right for its lead candidate for India.
Mayne Pharma has filed a complaint in the U.S. Court against TherapeuticsMD. Cosette Pharmaceuticals indicated an intention to terminate the acquisition over “material adverse clause claims.”

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Jun 07

Daily Brief Thematic (Sector/Industry): China Prop Short Note: Turning Bullish on “lower Rates for Longer” & Improving Sector Fundamentals and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

China Prop Short Note: Turning Bullish on “lower Rates for Longer” & Improving Sector Fundamentals
Hong Kong Banks – Weak Property Lending Weakens More, Aggressive LDR Fall, Expect Poor Profit
Thematic Report: Indian Pipe Sector Turnaround
Impact of Rate Cut on Indian Banking Sector: NIMs & Earnings to Contract Further Amid Slowdown
Thematic Report: AI’s Productivity Gains; Quantifying Revenue Risk for Indian IT
[Blue Lotus Daily]:XPEV US/NIO US/New Energy Vehicle
[Blue Lotus Daily-TMT Update]:700 HK/1024 HK/JD US/TCOM US/3690 HK/NTES US/AI Sector Update
AUCTUS ON FRIDAY – 06/06/2025

China Prop Short Note: Turning Bullish on “lower Rates for Longer” & Improving Sector Fundamentals

By Jacob Cheng

We are turning bullish on the sector. We think there are several structural drivers that will improve the sector as a whole, both on demand and supply side
Continued low onshore rates will boost the property market as well as reduce funding cost for developers. The decline in new start will also help support home prices
Valuation is still almost historical low, we think the downside is relatively limited

Hong Kong Banks – Weak Property Lending Weakens More, Aggressive LDR Fall, Expect Poor Profit

By Daniel Tabbush

Real estate lending growth in Hong Kong remains weak and now at lowest growth rate in the HKMA series since early FY05
Deposits are overwhelming HK’s banks with LDR now moving to 55% in April FY25, nearly the lowest on record from HKMA series
Capital flight risk on the HK currency is also more severe than in the past, at any time, with FX reserves at 1.6x , well below past levels

Thematic Report: Indian Pipe Sector Turnaround

PVC‐pipe makers endured FY 25’s perfect storm, resin prices crashed, trade channels destocked, volumes wobbled, yet April-May demand snapped back and resin prices appear to have bottomed.
Anti-Dumping duties plus the coming BIS quality curb on Chinese resin should lock in price discipline; government infra-spend, real-estate and irrigation needs set up 10-12 % volume CAGR for FY27.
With inventory now thin, even a modest restocking cycle could turbo-charge revenues while stabilising input costs let organised players claw back EBITDA margins; diversified leaders look best placed.

Impact of Rate Cut on Indian Banking Sector: NIMs & Earnings to Contract Further Amid Slowdown

The banking sector will likely see earnings growth bottom out in FY26, with the second half potentially performing better than the first half as deposit rate reductions eventually flow through.
This divergence between declining lending rates and sticky deposit costs is the core driver of NIM compression.
This monetary easing is expected to exert downward pressure on banks’ lending yields, impacting NIMs, particularly in the first half of fiscal year 2026 (1HFY26).

Thematic Report: AI’s Productivity Gains; Quantifying Revenue Risk for Indian IT