In today’s briefing:
- Ohayo Japan | Stocks Slip as Trump Reignites Tariff Fears with Copper Threats
- China Housing – A Mid-Year Check
- HK Strategy: How to Play the Future H IPOs of the As
- Japan Morning Connection: Pharma Set for Rough Start on Trump Threats
- Atmanirbhar Bharat in Arms: India’s Dual Strategy for Defense Dominance
Ohayo Japan | Stocks Slip as Trump Reignites Tariff Fears with Copper Threats
- Trump announced a 50% tariff on copper, threatened 200% on pharmaceuticals, and said Europe faces tariffs soon, while urging Powell’s resignation.
- The Dow fell 0.4%. Copper futures surged over 10% on the news, while pharmaceutical stocks including Pfizer, Amgen, and AbbVie gave back earlier gains amid tariff concerns
- Welcia Holdings reported a 2.2-fold net profit increase to ¥6 billion and 10% sales growth to ¥334 billion for March-May 2025, driven by strong prescription and food sales
China Housing – A Mid-Year Check
- In this note, we look at the latest May/June data, policy, and sentiment in China housing markets, with some reflections on where things are vs the expectations end of 2024.
- “Less negative” summarises the data, while “Stabilise it” captures the policy approach.
- New home sales are in line with our forecast, and in the upper range of group forecasts from China Property Outlook, but there are some new data caveats.
HK Strategy: How to Play the Future H IPOs of the As
- YTD, the share prices of the H-share IPOs of A-shares increased by an average of 30.2%, and the H-A discount narrowed by 14.8pp, but the range is wide.
- The growth outlook, as reflected by the 3-year EPS CAGR, is the key driver for the performance and reduction in H-A share discounts.
- Market cap, absolute PER multiples, and even relative PER ratios are not the major factors supporting their post-IPO performance.
Japan Morning Connection: Pharma Set for Rough Start on Trump Threats
- Meta taking a $3.5bn stake in Essilor Luxottica now gives them exposure to both Nikon and Paris Miki.
- Further positive broker rhetoric for power-semis should continues to lift Rohm, while WOLF gains positive for Renesas.
- Intel announcing plans to sell Mobileye stake may be seen as positive for foundry expansion plans.
Atmanirbhar Bharat in Arms: India’s Dual Strategy for Defense Dominance
- India has approved INR 1 lakh crore ($12.6 billion) for building military systems at home, focusing on self-reliance.
- This move boosts India’s defense strength with 193 defence contracts (92% domestic) already signed in FY25.
- India is combining local manufacturing with stronger global ties, especially with the U.S, to strengthen its defense capabilities.
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