In today’s briefing:
- Quiddity Leaderboard TDIV Jun25: US$2.1bn One-Way; 17% Turnover; Sector-Neutral Trade Ideas
- Nikkei 225 (NKY INDEX) Drops Amid US Tariffs: Implied Volatility Hits Extreme Levels
- Klarna’s Big IPO Has Investors Thinking “Buy Now – Profit Now”
- Lucror Analytics – Morning Views Asia
- Chart of the Day: Implied Volatility Soars Globally, US and Bitcoin Hit Hardest
- Asia Real Estate Tracker (03-Apr-2025): Warburg Pincus buys Tokyo office in life sciences JV.
Quiddity Leaderboard TDIV Jun25: US$2.1bn One-Way; 17% Turnover; Sector-Neutral Trade Ideas
- The TDIV index tracks the top 50 names in the Taiwan Stock Exchange with the highest dividend yields. It is a yield-weighted index with unique capping rules.
- In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the June 2025 index rebal event.
- We expect five changes for the TDIV index. On top of that, there will be capping flows too.
Nikkei 225 (NKY INDEX) Drops Amid US Tariffs: Implied Volatility Hits Extreme Levels
- Market Reaction: The announcement of US reciprocal tariffs led to significantly lower market open throughout Asia-Pacific. In the US, S&P 500 futures dropped -3.5%, with the VIX spiking to 23.45.
- Impact on Japan: Japan faces a 24% tariff, with specific sectors like automobiles hit with 25%. This led to a 4.5% drop in the Nikkei 225, stabilizing at 34,600 (-3.2%).
- Volatility Increase: The Nikkei 225 VIX index jumped from previous levels in the low 20’s to rise above 38 before retreating to 32.8, indicating the 99th percentile of implied volatility.
Klarna’s Big IPO Has Investors Thinking “Buy Now – Profit Now”
- The Swedish startup has formally filed for a US IPO and is aiming to raise $1 billion, at a valuation of between $15 billion and $20 billion.
- Buy now, pay later is one of the biggest shifts in modern finance. Klarna isn’t just BNPL anymore: it has a whole shopping and payments ecosystem.
- Klarna may be a heavyweight in BNPL, but it’s not alone in the ring. Heavy hitters like Affirm, Afterpay, and PayPal are also scrambling for dominance.
Lucror Analytics – Morning Views Asia
- US President Donald Trump has announced a minimum 10% tariff on all exporters to the US, as well as additional reciprocal duties on c. 60 nations.
- Vietnam faces one of the steepest tariff increases at 46%, while China will be subject to an additional tariff hike of 34% (on top of an existing 20% duty tied to fentanyl trafficking).
- Meanwhile, India, South Korea and Japan have been hit with tariffs of 26%, 25% and 24%, respectively.
Chart of the Day: Implied Volatility Soars Globally, US and Bitcoin Hit Hardest
- Asia-Pac Performance: The Indian market bucketed the down trend with the Nifty 50 declining only 0.35% with stable implied volatility. The Nikkei 225, on the other hand,dropped 2.8%.
- US and European Decline: The US market saw the largest decline, with implied volatility rising by 8%. European indices showed mixed results, with the EuroStoxx 50 reacting strongly.
- Gold vs. Bitcoin: Gold (GLD US ETF) proved to be a better store of value, while Bitcoin joined the US indices in higher volatility.
Asia Real Estate Tracker (03-Apr-2025): Warburg Pincus buys Tokyo office in life sciences JV.
- Warburg Pincus partners with Eastgate to acquire Tokyo office as part of Life Sciences joint venture, expanding their investment portfolio.
- Greystar purchases GIC-Wee Hur Aussie student housing for $1B, solidifying their presence in the Australian real estate market.
- Iron Mountain makes strategic move by acquiring Web Werks, an Indian data center group, enhancing their capabilities in the data management sector.
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