In today’s briefing:
- Ohayo Japan | Tech Leads Late-Week Rally
- China Strategy: Revisiting the Rmb Appreciation Story
Ohayo Japan | Tech Leads Late-Week Rally
- US equities rebounded on Friday, snapping a recent losing streak as easing inflation concerns and renewed confidence in the AI trade lifted sentiment late in a volatile week.
- Sony Group will acquire an additional 41% of Peanuts Holdings for about $460m, lifting ownership to 80%, consolidating the unit and booking a remeasurement gain in operating profit.
- Nike’s earnings slump highlights China weakness and margin pressure, creating share-gain opportunities for ASICS, whose improving China margins and exposure to a healthy global running market position it favorably.
China Strategy: Revisiting the Rmb Appreciation Story
- The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.
- H World Group (1179 HK), China Everbright Environment (257 HK), and China National Building Material (3323 HK) are the most likely ones to gain the most.
- The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on SICC (2631 HK) being the heaviest.
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