In today’s briefing:
- Japan Defence Supercycle: Multi-Decade Tailwinds, Near-Term Catalysts
- Singapore Equity Strategy: August 2025
- Japan Morning Connection: Alphabet and Apple Prop the Market up as AI Cited as a Competitive Threat
- China & HK Strategy: The High-Yield Playbook
- RW-08-25: Inflation and Capital Intensity: Blessing or Curse?
- Asia Real Estate Tracker (03-Sep-2025): Unified Industrial JV proposes Singapore REIT.
- Exencial Industry Tidings 03/09/2025
- Mining Monthly: August Edition
- Monthly Air Cargo Tracker | May-July Data Shows Soft Demand, Ample Capacity, Lower Yields
Japan Defence Supercycle: Multi-Decade Tailwinds, Near-Term Catalysts
- Japan’s defence renaissance is underway, driven by structural budget growth toward 2%+ of GDP.
- Multi-Decade tailwinds in missiles, cyber, and naval systems will reshape the domestic defence industry.
- Investors should balance national champions with mid-cap leverage plays to capture both visibility and alpha.
Singapore Equity Strategy: August 2025
- It appears that the Singapore stock market is currently witnessing a positive re-rating, as seen in a rise in the market’s price-earnings ratio while earnings per share has stayed relatively stable.
- In our view, the upward re-rating has come on the back of several key developments. • On the external front, the US will charge Singapore the baseline tariff rate of 10%. While tariffs work against every US trading partner, on a relative basis, Singapore compares well with most other countries.
- Also, amid concerns over US policies and the outlook for the US dollar. anecdotal evidence points to capital flows into Singapore.
Japan Morning Connection: Alphabet and Apple Prop the Market up as AI Cited as a Competitive Threat
- Memory continues to surge with Western Digital named as a top pick helping lift peers.
- Power and industrial semi’s lower after a poor reception to Infineon’s IR conference comments and Trump’s wind power attack.
- Da Vinci facing headwinds as funding recedes in another negative for Sysmex who continues to reel after poor numbers.
China & HK Strategy: The High-Yield Playbook
- The top ten highest-yielding stocks under our coverage have an average yield of 7.4% for FY25F and 7.2% for FY26F, attractive amid the declining interest rate environment.
- Sinotrans (598 HK), Anhui Expressway Co Ltd H (995 HK), and China Railway Signal & Communication (3969 HK) are better quality ones with 6-7% average yield.
- Chinese airlines are low on yields given they are still loss-making, but they have a good earnings rebound in 2H25, making them suitable for aggressive investors.
RW-08-25: Inflation and Capital Intensity: Blessing or Curse?
- Welcome to Random Walks Down David’s Mind!
- With inflation being a relevant macroeconomic variable in the US and Europe for the first time since the early 1990s, many currently active European and US investors are experiencing their first period of elevated inflation in their professional lives—or even their entire lives (yep, I was born after 1990!).
- In this context, I am studying which businesses benefit from inflation and which are harmed by it.
Asia Real Estate Tracker (03-Sep-2025): Unified Industrial JV proposes Singapore REIT.
- The Unified Industrial joint venture, supported by Macquarie, aims to create a new industrial REIT in Singapore.
- AXA IM Alts is expanding its Build-to-Rent platform with a new project in Melbourne, Australia.
- China’s Q2 property investment deals have dropped by 46%, impacting the overall APAC market significantly.
Exencial Industry Tidings 03/09/2025
- Coffee exports rises by 24% to USD 1.5 bln during Value of Jan-Aug 2025
- India’s first dedicated marine govt to launch conservation vessel Goa
- India Plans to scale up pharma experts to Russia, Netherlands , Brazil
Mining Monthly: August Edition
- The metals and mining market saw a resurgence in August, reaching record highs, following a subpar couple of previous months.
- In August, gold was up 5%, silver was up 7%, and copper was down 2%.
- The equities massively outperformed the commodities, with the GDX, GDXJ, SIL, and COPX up 22.2%, 24.6%, 22.9%, and 15.8%, respectively.
Monthly Air Cargo Tracker | May-July Data Shows Soft Demand, Ample Capacity, Lower Yields
- Airline & airport air cargo data shows moderating demand, Asia > N America
- No signs of supply tightness in the system; in fact, reported yields are falling
- Most indicators show that demand is mediocre, space plentiful, pricing weak
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
