Thematic (Sector/Industry)

• Stocks dropped sharply on Wednesday, with the Dow Jones Industrial Average experiencing its worst day in over a month
• All three major indexes logged their third consecutive day of losses on soaring Treasury yields, with the 10-year yield hitting 4.25%
• Lam Research (LRCX US)  shares rose nearly 4% after hours following better-than-expected Q1 earnings and revenue.

• Apple down hitting suppliers, with ARM and Qualcomm spat taking both lower. Watch Softbank for weakness.
• Tesla earnings smashing it out of the park, will help buoy EV related including Nidec – whose own numbers yesterday were positive.
• Texas Instruments +4% on numbers beat should help industrial elec names such as Rohm and Fuji Elec, despite lingering concerns.

• Naveen Jindal Group to Invest INR 2,160 Crore in Cement Expansion
• Bharti Airtel Secures CCI Nod to Raise Stake in Indus Towers
• Reliance Infrastructure to Invest INR 10,000 Crore in Defence Manufacturing

• U.S. stocks ended mixed on Tuesday as investors assessed rising Treasury yields and concerns over deficit spending post-election
• Ahead of Japan’s October 27 election, PM Ishiba and major parties pledge to raise minimum wage to 1,500 yen ($9.94) by 2029, a 40% increase from current 1,054 yen
• Aerospace stocks generally weaker overnight despite relatively strong results. GE Aerospace (-9%), Lockheed Martin (-6%) and RTX (-1%). 

• Nervous markets overnight with a number of earnings misses adding downside pressure.
• Tokyo Metro IPO kicks off today which should see strong demand especially from risk-adverse retail investors.
• Tokyo Metro grey market last Y1400 vs Y1200 listing price, although bookrunners are calling higher levels to start.

• 700 HK: Tencent’s <Delta Force> Global Version Launch Scheduled for December 5 (+)
• 700 HK: Tencent Meeting Announces Free Meeting Time Limit Reduced to 40 Minutes (+)
• BABA US/700 HK: New user installs reach new high in September (+/+)

• XPEV US: Xpeng MONA M03 suffers large scale delivery delays (/)
• 1810 HK: Government official announces that Xiaomi has developed a 3nm smartphone SoC (+)
• MNSO US: Toptoy Expands Stores to Southeast Asia (/ )

• A relatively quiet week for the markets as earnings growth through the start of earnings season, increasing confidence around the no/soft landing scenario, and China stimulus offset growing concerns over luxury spend.
• The WTR Commercial/Contract Furniture Index was up 2.2% and the WTR Residential Manufacturers & Suppliers Index was up 1%, while the WTR Home Goods Retailers Index was down 0.9%.
• The DJ30 and S&P 500 were both flat at +0.1%, while the R2K was up 1.2%. The WTR Mass Retailers Index was up 0.7%.

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• Last week, LBPH was acquired, providing a boost to comps PRAX, MRNS, JAZZ, and DRUG.
• Biopharma M&A may start seeing an uptick after a slow summer.

• The WTR Sustainable Index was down 1.9% W/W versus the S&P 500 Index (up 0.9%), the Russell 2000 Index (up 1.9%) and the Nasdaq Index (up 0.3%).
• Energy Technology (13.2% of the index) was down 0.9%, while Industrial Climate and Ag Technology (48.4% of the index) was up 1.1%, ClimateTech Mining was down 5.8%, and Advanced Transportation Solutions (20.2% of index) was down 5.7%.
• Top 10 Performers: LTBR, AZRE, GEVO, NXH, HTOO, NGPHF, SMR, NRGV, PEGY, FTCI

• Stocks ended mixed on Monday as the 10-year Treasury yield rose to 4.18%, its highest since July, while investors braced for a busy week of earnings
• VF Corp’s stock dropped 8% after JP Morgan placed the company on its “Negative Catalyst Watch” list, citing wholesale challenges and ongoing traffic headwinds.
• SAP reported Q3 results post market close, with the stock gaining 4% after hours. Fujitsu should benefit from similar trends.

• If GAA is better viewed as a revolutionary change, it implies that Intel, Samsung and TSMC will transition to GAA with a largely level playing field 
• If GAA is better viewed as an evolutionary change, TSMC will carry forward its process technology leadership into its GAA transition, leaving it in the #1 position
• We think that the GAA transition is evolutionary, not revolutionary and posit that TSMC will continue to maintain its semiconductor process technology leadership through the transition.

• NVDA saving tech from a bigger pullback as the market takes profits ahead of earnings.
• Rates higher and causing a pullback in R/E related and the yen is approaching Y151.
• Disco’s better-than-expected outlook for HBM related equipment should leave more room for upside.

• I don’t think it’s been any secret that I’ve been a peak litho bear for quite some time. I think we are finally seeing reality hit the company and the stock. Let’s discuss earnings, and then I’ll talk about peak lithography and TSMC.
• ASML accidentally leaked earnings this week, and the leak wasn’t good. They beat Q3, but the issue was the outlook for next year and orders coming way below expectations. It’s funny because Q4 revenue is expected to accelerate, but no one is paying attention to that.\
• Memory was half of the measly 2.6 billion-order book and is likely driven more by DUV for HBM than logic High NA.

• PFC and BEML Sign MoU for Defence and Infrastructure Projects
• Zee Entertainment Seeks Settlement with SEBI Over the Governance Issues
• ONGC and BPCL Search for Global Partners to Build Greenfield Refineries

• New highs for Intuitive Surgical on the success on its Da Vinci surgical robot sets a good tone for Sysmex.
• R/E related plays including homebuilders jumping with Blackstone +8% in 2-sessions Thurs/Fri.
• Recruit is rapidly running out of buyback bullets, and while it may reload it is priced to perfection and is looking vulnerable to correction.

• U.S. stocks closed at record highs Friday, continuing a robust streak fueled by Netflix’s strong earnings
• In commodities, gold prices surged to a record $2,700 per ounce, driven by investor demand for safe-haven assets amid ongoing Middle East tensions.
• Essilor Luxottica, the world’s largest eyeglass manufacturer, increased its stake in Nikon from 5.10% to 7.38%

• U.S. stocks showed a “slightly bullish” trend this week, driven by stronger-than-expected September Retail Sales, which pushed the S&P 500 up 0.9%
• Japan’s stock market experienced a volatile week, with the Nikkei 225 Index declining 1.6% and the broader Topix Index down 0.6%
• ASML’s cautious guidance hit Japanese SPE Stocks, but AI-related chip demand remains “insane” according to TSMC

• Precious Metals and the associated equities have been a high-conviction investment idea for us in 2024
• Gold is up 39% YTD and a representative index of gold miners is up 32%
• Should we take the money and run? Is it over?

• The Global Emerging Markets Weekly summarises the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: Chinese inflation, net exports, GDP growth, industrial production, and retail sales data.
• Companies mentioned:Taiwan Semiconductor (TSMC) (2330 TT), Alibaba Group Holding (9988 HK), Baidu (9888 HK)

• Australia has recommended against the approval of Eisai Alzheimer’s disease drug Leqembi. Daiichi Sankyo’s Enhertu received conditional approval in China for the treatment of non-small cell lung cancer.
• Nihon Kohden has revised its financial forecasts for H1FY25. Shanghai Junshi Biosciences’ toripalimab has been approved for marketing in India for treatment of recurrent or metastatic nasopharyngeal carcinoma.
• Akeso Biopharma raised ~$250M, for funding its R&D activities. Celltrion has filed phase 3 clinical trial application in Europe for Cosentyx biosimilar in patients with moderate to severe plaque psoriasis.

• Reportedly, Government of Pakistan is planning to enter into agreement with 5 power producers in Pakistan for premature termination of their Power Purchase Agreement (PPA). This includes 2 listed names, i.e. base power plant for Hub Power (HUBC), and Lalpir Power Limited (LPL), and 1 indirect listed name, Roush Power (through Altern Energy), and 2 unlisted players, Saba Power and Atlas Power.
• Based on the news reports, 4 of the above are set to sign agreement with the Governments, while 1 (HUBC) is expected to sign it soon.
• The objective behind early termination of these plants is to avoid any further capacity payments to the producers, thus taking one step ahead out of many to reduce power cost in the country. This step may result in benefit of Rs0.6/Kwh, as per news.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

• China consumption shows rebounding demand following appreciation in asset values and home appliance subsidies. A record number of parcels were delivered last week, while home appliance sales grew rapidly;
• We’ve raised 4Q estimates for online shopping growth given the recent demand trends which we expect to sustain through the quarter, so long as stimulus remains forthcoming;
• JD and BABA remain our top ecommerce picks given their exposure to recent home appliance subsidies, as well as benefiting from a longer-term improvement in consumer sentiment.

• Minister of MOHURD (Ministry of Housing and Urban Development) said on October 16th that MOHURD planned to renovate 1mn more shanty houses via 100% cash exchange by year end;
• We estimate this would inject Rmb0.5-1tn to the hands of shanty town residents. If all these money are putt into the property market, it can drive up transaction by 3-7%;
• However, property transaction showed existing home sales growth slowed in September and new home sales remained in negative. The real estate market is in dire need of further stimulus.

• We have launched our new website with a revamped research portal – Home | Auctus Advisors.
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• AUCTUS PUBLICATIONS ________________________________________ Criterium Energy (CEQ CN)C; Target price C$0.35 per share: Encouraging drilling results.

• Real Estate Industry Update: Press Conference of the Ministry of Housing and Urban-Rural Development: Restarting Monetized Resettlement May Drive a 3%-7% Increase in Property Transactions Value(+)
• 1585 HK/NIU US/603529 CH: Shanghai announces trade-in subsidy for electric bikes (+/+/+)
• 1211HK/1810HK/XPEVUS/NIOUS/LIUS:Electric vehicle sales surged in the 41st week of 2024, BYD,Xiaomi,andXpeng took the lead, Tesla was unexpectedly weak,and Aion did not enter the top ten for the second week (/////////)

• The Dow Jones Industrial Average closed at a record high, up 161 points (0.37%) to 43,239, as strong economic data eased recession fears
• TSMC predicted continued strong AI chip demand, forecasting server-related chip demand to triple in 2024.
• Couche-Tard CEO Alex Miller is in Tokyo seeking a meeting with Seven & i’s management;  they declined to meet.

• August’s WSTS semiconductor revenues registered a record high of more than $53 billion
• Nobody seemed to notice, including the organization making the announcement
• There’s valid concern that the market is on the verge of a collapse, and this may be overshadowing record sales

• Although the H-share securities companies have retreated significantly from their peaks, there are still “fats” in their share prices in the near term, relative to the market turnover.
• Citic Securities (H) (6030 HK) looks vulnerable given its high valuations, low H-A share discount, limited correction from its peak, and significant rebound from the trough.
• China Merchants Securities (6099 HK) appears exposed though valuations are not high. It has the best YTD performance and rebound from the trough, and its H-A share discount is light.   

• TSMC gains largely failed to buoy the US SPE names, with many continuing to drop setting a similar tone for Japan peers.
• Travelers +9% on better than expected earnings and less Hurricane impact will continue to help the JP non-life.
• Sumitomo Forestry has corrected significantly and now looks ready to rebound and join its US peers hovering close to their all-time highs.

• This note is a weekly (select weeks on SK) curated selection of Chinese news articles and company announcements focused on developers in distress
• We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
• We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to the sources

• Ducksheet announces a big event with OG of aluminum at the end of the week
• West Gold quarterly update shows lower cash balance than expected, with reasons for decrease discussed
• Investments and transactions post-merger with Corora impact cash balance and future growth plans discussed

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Tencent’s <Peacekeeper> saw a strong player return and robust revenue performance due to introducing new gameplay modes, with projected gross billings for 2024 expected to exceed RMB 20 billion.
• <DnF Mobile> continues to perform well, maintaining high popularity, leading to an upward revision of its annual revenue forecast.
• New games <Civilization Mobile> and <Need for Speed Mobile> experienced a sharp decline in popularity, and with a late release, their contribution to 2024 revenue is expected to be limited.

• AMD showing strong increases in CPU architecture and market share, particularly in AI accelerators
• Launch of the Mi 325 X accelerator with improved specs and benchmarks against Nvidia’s products
• Critique of AMD’s prioritization of data center over client solutions, but overall still competitive with Nvidia and gaining traction in the market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• JD US/BABA US/1810 HK: Jiangsu Province adds seven new products to the list of appliances eligible for subsidies(+/+/+)
• 700 HK: Tencent’s MOBA Game <Pokémon Unite> Mobile Version Set for Release on November 7(+)
• 700 HK: Tencent-owned Riot Games Announces Layoffs, Offering Severance of at Least Six Months’ Salary, Aiming to Keep <League of Legends> Thriving for 15 More Years(/)

• U.S. stocks surged on Wednesday, with the Dow Jones Industrial Average rising nearly 350 points (0.8%) to a record 43,077
• Chip stocks rebounded, led by Nvidia’s 3.1% recovery after ASML’s cut to its 2025 sales forecast initially dented confidence in AI-related stocks.
• Sony acquired Kinatrax, a U.S. company specializing in athlete movement analysis using high-speed cameras.

• US restrictions for Huawei suppliers has the potential for block exports for a variety of non-leading-edge chipmaking equipment to China. 
• ASML confirms its EUV slowdown which is negative for Hoya Corp as a leading global supplier of EUV mask blanks. Lasertec -13.4% yesterday, although it may struggle to rebound 
• PM Ishiba making an offering at the Yasukuni Shrine has the potential to rile China, although Japan’s tourist arrivals in Sep hit +26% above 2019 pre-CV levels. 

• It has become evident that Chinese economy needs stimulus. But why is it not happening? The latest by NDRC and MOF suggests US rate and presidential election are the keys;
• What has come forward in the forms of local government debt swap and bank reserve injection is similar to fueling a liquid-fueled missile. Once it starts, it can’t roll back;
• The biggest swing factor from US presidential election is the Trump Tariff, which can cut China’s GDP growth by half. The fueling hopefully can handle impact of such magnitude.

• BlackRock and Jio Financial Discuss Private Credit Venture in India
• Tata Group to Create 5,00,000 Jobs in next Five Years
• Indian Oil and Ever Enviro Partner for Compressed Biogas Production

• Hyundai Motor India (1342Z IN) plans India’s largest IPO, valued at Rs. 27,870 crore.
• Historical data shows large IPOs often underperform, raising concerns about valuation and market timing.
• Caution is essential; analyzing fundamentals over hype is crucial for IPO investments.

• U.S. stocks retreated Thursday as crude oil prices dropped and technology shares weakened. The S&P 500 slipped 0.8%.
• ASML revised its 2025 sales forecast downward, citing sustained semiconductor market weakness outside of AI-related chips
• Nvidia shares fell 4.5% after reports that the Biden administration might restrict U.S. chip exports to Persian Gulf countries for national security.

• Japan SPE set for a big pullback after a terrible ASML order outlook.
• EUV related plays will be under pressure including Lasertec and Hoya.
• Expect rotation towards domestic defensive, with rails in focus after Tokyo Metro IPO priced top of range.

• Macro News Update: Weak Household Loan Data in September Highlights Urgency for Consumption Stimulus
• Macro News Update : Scholars within China’s government system indicates more incremental stimulus policies are on the way.
• Macro News Update : Positive read thru on the Ministry of Finance press release(+)

• BABA US/PDD US/JD US/VIPS US: Tmall shares recent growth figures and Double 11 initiatives (+/-/-/-)
• BABA US/PDD US/SHEIN/4385 JP/4689 JP: AliExpress and Cainiao expand 5-day delivery to three additional countries including Japan (+/-/-)
• BABA US/JD US/PDD US: Alibaba launches upgraded AI-based store management tool (+/-/-)

• JSW Renew Energy Signs 700 MW Solar Agreement with NTPC
• SC Revives Adani’s INR 27,000 Crore Insolvency Resolution for KSK Mahanadi
• Zomato Xtreme Relaunches with Renewed Focus on the Food Delivery

• Monthly data for job vacancies in Australia continues to weaken sequentially
• Australian HFD on bankruptcies and insolvencies has been weak for some time
• Risk is that credit metrics of Australian banks remain poor, continuing what we see for many at present

• US semis and tech related setting a bullish tone for JP SPE with NVDA closing at record highs.
• Steep drop for oil to hit Japex, Index and refiners while US P&C strength should also be reflected in JP peers.
• Possible downside for Fujitsu with NTT Docomo announcing a pivot away from their base station equipment.

• U.S. stock markets reached new heights on Monday, with the S&P 500 and Dow Jones Industrial Average setting fresh records.
• Tech stocks led the day’s gains, with chip giant Nvidia rising nearly 3% to close at a new high above $138 per share
• Shin-Etsu Chemical, the leading silicon wafer producer, plans to enter semiconductor manufacturing equipment business.

• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• Last week, SRRK gained from muscle-building data in SMA, with positive read-through for obesity and BHVN.
• WW joined HIMS in selling NVO GLP-1 copies, while the FDA backed off on LLY copiers after a lawsuit.

• Furniture and furnishing stocks underperformed the broader market this week.
• The Water Tower Research Commercial/Contract Furniture Index (-0.5%), Residential Manufacturers & Suppliers Index (-2.4%), and Home Goods Retailers Index (-1.1%) trailed the DJ30 and S&P 500 (both +2.1%) and the R2K (+1.7%).
• The Water Tower Research Mass Retailers Index was up (+3.2%).