Brief Japan: New J Hutton – Exploration Report (Weeks Ending 30/08/19) and more

In this briefing:

  1. New J Hutton – Exploration Report (Weeks Ending 30/08/19)
  2. Understanding Chinese Monetary Policy: Trying Hard to Ease?
  3. Japan Short Interest – Feels like a Squeeze; Softbank Corp Most Shorted

1. New J Hutton – Exploration Report (Weeks Ending 30/08/19)

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2. Understanding Chinese Monetary Policy: Trying Hard to Ease?

Smartkama

  • Latest RRR cuts are only tactical and do NOT signal strategic monetary ease
  • PBoC liquidity injections are the key monetary signal
  • Liquidity jumped from May through July but August flat and September weak
  • No indication yet that PBoC easing aggressively….but they will

3. Japan Short Interest – Feels like a Squeeze; Softbank Corp Most Shorted

The short notional in the market for the week ended 6 September is US$25.47bn with the largest short positions in Itochu Corp (8001 JP), Toyota Motor (7203 JP), Taiyo Yuden (6976 JP), Canon Inc (7751 JP),  and Sumitomo Mitsui Financial (8316 JP) . Most shorted stocks as a percentage of free float are Amazia, Taiyo Yuden (6976 JP), Leopalace21 Corp (8848 JP) and Extreme Co Ltd (6033 JP), while the stocks with the highest days to cover are Katakura Industries (3001 JP), Vital Ksk Holdings (3151 JP), Mirait Holdings (1417 JP) and J Trust Co Ltd (8508 JP)

The largest increases in short notional over the week were Softbank Corp (9434 JP), Terumo Corp (4543 JP), Pigeon Corp (7956 JP), Kikkoman Corp (2801 JP) and Toshiba Tec (6588 JP) while shorts were covered in Nippon Steel Corporation (5401 JP), Tokai Carbon (5301 JP), Yaskawa Electric (6506 JP) and Seven & I Holdings (3382 JP).   

Sectorally, new short positions were built in Communication Services and Consumer Discretionary, while shorts were covered in Information Technology and Materials.

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