Daily Brief Thematic (Sector/Industry): Ohayo Japan | ASML Sparks Tech Rally and more

• US Markets higher on back of strong bank earnings and ASML numbers spur rally in SPE names
• LVMH +12% on surprise Q3 result as Chinese buyers return. EU lux names higher but muted follow through in US due to trade spat.
• LDP and Japan Innovation Party to begin talks on trying to form coalition. Increases likely hood of Takaichi as PM.

• ASML guiding for growth despite a big cut in China sales a positive roadmap for JP SPE also.
• Memory prices continue to soar as makers stop issuing spot prices due to lack of inventory.
• A LDP-JIP alliance makes a Takaichi PM-ship more likely. Watch as the satellites continue to fly.

• Citi’s claim that AI has triggered the first true semiconductor upcycle in 25 years is partially convincing but also shows signs of overreach.
• While ASPs have soared and logic chip margins are inflated, signs of margin compression, overordering, and inventory noise suggest the pricing boom may be peaking.
• Investors may need to distinguish between capital-efficient AI bets and overleveraged plays, especially as credit markets begin to price in growing execution and demand risks.

• Wells Fargo & Co (WFC US) reported strong loan growth and much lower credit costs 3Q25
• The credit costs from WFC are stepped down, and fully reflected of weekly B/S from Fed data
• C&I loans are up a lot, indicative of economic strength, NPL ratio for all loans, are falling more

• Plastic products industry commissions projects worth Rs.4.1 billion in September 2025 quarter
• Gems & jewellery exports to US down 40.3% during April-September 2025
• New project announcements in construction materials industry rise to Rs.197.5 bln in Sep 2025 qtr

• SC Capital has successfully sold an education building located in Seoul for a total of $38 million.
• Australian executives have initiated wrongful termination claims against JLL after their recent dismissals.
• In Shanghai, office rents have experienced a decline for the 14th consecutive quarter due to new buildings entering the market.

Key points (machine generated)

• Regional casino stocks have been downgraded to historical lows despite recent growth in gross gaming revenue (GGR).
• The report suggests that GGR growth is supported by a loyal customer base and is likely to continue, outpacing GDP growth.
• If growth trends persist, stock prices could appreciate by 30-40% as valuations return to historical ranges of 8-10x EBITDA.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.