In today’s briefing:
- Japan – Sharply Higher Long-Dated JGBs Should Mean Sizable Valuation Losses at Insurers, Not Banks
- Ohayo Japan | Nasdaq Leads 2.5% Rally Across US Markets
- Japan Morning Connection: Risk-On with Investors Liking Optimistic Tone from EU-US Talks
- Indian Defence Sector: A Sustainable Boom Or A Trap?
- [Blue Lotus Daily]:1211 HK/LI US/1179 HK/ATAT US
- [Blue Lotus Daily-TMT Update]:3690 HK/PDD US/BABA US/TCOM US/700 HK/NTES US/1024 HK/JD US/BILI US/AI
- Technical Analysis – MAY 27, 2025
Japan – Sharply Higher Long-Dated JGBs Should Mean Sizable Valuation Losses at Insurers, Not Banks
- There is very high delta in 30-year JGB yields in the recent month, and preceding periods
- This is very much unlike what we see with the 1-year JGBs, different implications.
- Insurance companies are the major holders of long-dated JGBs where banks have low duration on their bond holdings.
Ohayo Japan | Nasdaq Leads 2.5% Rally Across US Markets
- US stocks surged Tuesday with the Dow Jones Industrial Average gaining 1.8% or over 700 points
- Asahi Kasei will withdraw from four businesses including acrylic resins and MMA by March 2026-September 2027 due to deteriorating market conditions
- MBK Partners has secured preferential negotiating rights to acquire Makino Milling Works through a takeover bid
Japan Morning Connection: Risk-On with Investors Liking Optimistic Tone from EU-US Talks
- Semi’s and cons disc leading way higher, Japan set for strong start.
- Apple breaking downtrend on news its releasing a new game center to better compete against consoles.
- Nuclear names surging again which sets a continued positive tone for heavies and related.
Indian Defence Sector: A Sustainable Boom Or A Trap?
- Surging DPSU order books ensure revenue visibility, supported by FY26’s 9.5% budget increase and 75% capital outlay for domestic industry.
- The future outlook appears robust, driven by policy and a 20% production CAGR target, aiming for INR 5 lakh crore in exports by 2029.
- High valuations driven by P/E re-rating and heavy dependence on Ministry of Defence as a single buyer are key sector risks.
[Blue Lotus Daily]:1211 HK/LI US/1179 HK/ATAT US
- 1211 HK: BYD Company , Geely, Leapmotor Cut Prices (-)
- LI US: AITO M8 Achieves Over 80,000 Pre-Orders in Its First Month(-)
- LI US: Li Auto Revises Down 2025 Production Target (+)
[Blue Lotus Daily-TMT Update]:3690 HK/PDD US/BABA US/TCOM US/700 HK/NTES US/1024 HK/JD US/BILI US/AI
- 3690 HK/PDD US/BABA US: SAMR issues compliance guidelines for online platform fee practices (-/-/-)
- 3690 HK: “Shen Qiang Shou” and “Pin Hao Fan” Both Surpass 10 Million Daily Orders (+)
- TCOM US: Thailand’s Foreign Tourist Arrivals Decline by 2% YoY, Chinese Tourists Drop 33% (-)
Technical Analysis – MAY 27, 2025
- Despite President Trump postponing the 50% import tariff on the EU — which initially acted as a catalyst for a rebound in the SET — the index was quickly dragged down by weak investor confidence amid concerns over an economic slowdown.
- Nevertheless, gains in DELTA, ADVANC, and SCC helped the index close slightly higher, albeit on low trading volume.
- The index continued its attempt to rebound and hold above the support level at 1,173 points, which was successful.
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