In today’s briefing:
- Ohayo Japan | PM Ishiba Resigns
- Quick Note: The US Easing Trade: Buy Asia Leveraged Developers and REITs, NWD, COLI, SHKP, Link REIT
- Japan Morning Connection: Ishiba Heads for the Door (Finally) And Markets Pointing Higher
Ohayo Japan | PM Ishiba Resigns
- Japanese Prime Minister Shigeru Ishiba announced his resignation less than a year into his term, citing responsibility for the ruling coalition’s upper house defeat
- US stocks retreated Friday after a weak August jobs report reinforced expectations of imminent interest-rate cuts
- Hitachi will invest over 150 billion yen in the US, primarily through its subsidiary Hitachi Energy
Quick Note: The US Easing Trade: Buy Asia Leveraged Developers and REITs, NWD, COLI, SHKP, Link REIT
- According to latest, market is pricing in an 89% probability of 1 rate cut (25bps) and 11% probability of 2 rate cuts (50bps) in upcoming September FOMC meeting
- We think the easing trade is still happening. Under this macro backdrop, Asia listed developers and REITs will benefit from linked interest rate movements
- In particular, developers with high gearing will benefit the most. Buy NWD, COLI, SHKP, Link REIT on the back of attractive valuation
Japan Morning Connection: Ishiba Heads for the Door (Finally) And Markets Pointing Higher
- Japan heads for its 4th Prime Minister since 2020 with Ishiba failing to turn many of his election pledges into reality.
- Broadcom OpenAI order sends tech higher, with NVDA and AMD weakness likely short-lived.
- US Jobs print sends yields sharply lower and Homebuilders up.
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