In today’s briefing:
- Good Morning Japan |+50bp Fed Hike in the Bag, but Watching Tuesday’s US CPI Print
- HK-China Border Opening: Here Are Some Interesting Names
- Japan’s Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery
- The Innovations Portfolios – Week Three
- Weekly Stock Bullfinder – Week of 12/12
Good Morning Japan |+50bp Fed Hike in the Bag, but Watching Tuesday’s US CPI Print
- Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW TO KEEP ABREAST.
- OVERSEAS. US recession fears dominate, SPX -0.7%/-3.7%WoW; Nov PPI print higher vs Cons, Cements +50bp Fed hike; China stocks win WoW amid COVID loosening + Property rescue; Tech looks supported
- JAPAN. NKY Futs -0.4% vs Cash, USDJPY ¥136.56; US asks JP to help curb China chip access; More Boeing orders, +ve JP related; FY23 Defense to rise by ¥1trn
HK-China Border Opening: Here Are Some Interesting Names
- Relaxation of China’s local COVID-combating measures in last two weeks has induced expectations of HK-China border opening. This is speculated to come as early as 9 Jan 2023.
- We identify China Travel International Investment Hong Kong (308 HK), Sa Sa International Hldgs (178 HK) and Shangri-La Asia (69 HK) as interesting names to be benefited.
- While all have rebounded sharply lately, they are still significantly off pre-pandemic peaks back in 2018. We also like the solid financial positions of CTII and Sa Sa.
Japan’s Apparel/Fashion Sector Big Review: Momentum Builds for Full Recovery
- The apparel/fashion sector made a partial recovery last year but was still down on 2019. 2022 looks a lot brighter with customers now back in stores including even inbound tourists.
- The same challenges that the sector faced before Covid remain but there is plenty of room to grow by taking share from the less innovative competitors – i.e. more consolidation.
- The sector saw the highest fall in store numbers in its history last year, but there was more investment in creating a compelling omnichannel model suited to Japan’s particular market.
The Innovations Portfolios – Week Three
- We again write about one stock each from the large, mid and small cap portfolios, briefly giving the reasons behind their inclusion in the portfolio.
- The three companies we write about this week are Evonik Industries Ag (EVK GR)Altria Group (MO US) and Procter & Gamble Co (PG US)
- For three weeks ended 9 Dec the combined innovation portfolio was +0.7%, versus DJIA -0.8%, S&P500 -0.8%, Nasdaq -1.3% & MSCI-ACWI-ETF +0.5%.
Weekly Stock Bullfinder – Week of 12/12
- A few weeks back, I posted a chart showing the descending weekly trend line of the S&P 500 index to remind myself that the trend reminds down until price confirms a change in the power trend.
- This week, notable events include the Core CPI print on Tuesday, Fed press release and meeting on Wednesday, retail sales on Thursday, and S&P flash Services and Manufacturing PMI on Friday.
- As of today, while a favorable inflation and Fed meeting could change things, the rejection of the S&P 500 again at the descending trend line and a hold of the 200 day moving average, suggests that the next leg lower could be in order similar to other bear market rallies so far this year.
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