In today’s briefing:
- Ohayo Japan | Shutdown Deal Nears and Tariff “Dividend” Pledge Boosts Optimism
- Japan Morning Connection: Risk-On Mood Accelerates on AI and Tech Dip Buying
- Singapore Market Roundup (10-Nov-2025): CGSI boosts DBS target price above $60, following Citi,
- Thematic Report on The Great IT Bifurcation: Why TCS Is Downsizing While Coforge Soars
Ohayo Japan | Shutdown Deal Nears and Tariff “Dividend” Pledge Boosts Optimism
- Wall Street surged on optimism over a Senate deal to end the US government shutdown, while President Trump promised Americans a $2,000 “dividend” funded by tariff revenues.
- Tech stocks rebounded strongly, driving the Nasdaq up 2.2% near record highs, led by gains in NVIDIA (+5.8%), Palantir (+8.8%), and Micron (+6.5%).
- Japanese stocks rose on Monday ahead of the Senate deal, with futures up further +0.7% on tech optimism, though upcoming SoftBank earnings may steer near-term sentiment.
Japan Morning Connection: Risk-On Mood Accelerates on AI and Tech Dip Buying
- Takaichi loosening the investment spigots for nuclear and renewable will help the likes of JSW and Renova.
- The European Commission banning ZTE and Huawei from telco networks will be a boon for NEC.
- TSMC signalling 12 new leading edge fabs helps semi-caps outperforming, setting strong stage for Japan to start.
Singapore Market Roundup (10-Nov-2025): CGSI boosts DBS target price above $60, following Citi,
- CGSI raises DBS target price above $60, joining Citi and Maybank.
- RHB raises OCBC’s target price by 7% but remains ‘neutral’ post 3QFY2025 results.
- RHB maintains DBS as ‘buy’ and UOB as ‘neutral’ after 3QFY2025 results.
Thematic Report on The Great IT Bifurcation: Why TCS Is Downsizing While Coforge Soars
- Q2FY26 results show a “stabilizing” sector, but this was a illusion. The 30-90 bps margin beat was gifted almost entirely by a 3.6% INR depreciation.
- The aggregate numbers hide a structural bifurcation. Tier-1 players like TCS face GenAI “productivity headwinds”, forcing “involuntary attrition”. Agile Mid-Tiers like Coforge and Persistent are monetizing AI and winning share.
- Investors can no longer buy “the IT sector.” The Q2 results prove it’s a tale of two industries, a choice between leaders facing a painful transition and high-growth, high-premium challengers.
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