Daily Brief Thematic (Sector/Industry): Ohayo Japan | Wall Street Soars on U.S.-China Detente and more

• U.S. stocks surged Monday as easing trade tensions with China fuelled a broad market rally; Dow up 1,160 points
• Denso will sell 73.9 million shares of Renesas Electronics, reducing its stake from 4.2% to 0.1%
• Nissan Motor plans to cut 20,000 jobs globally, increasing from a prior 9,000, reducing its 130,000-strong workforce by 15%

• Recent positive Foreign Institutional Investor (FII) inflows into the Indian equity markets may prove short-lived, as a confluence of emerging risks and unattractive relative returns could dampen foreign investor appetite.
• While April-May 2025 saw a modest US$0.5 billion in FII inflows, this followed a significant US$13.5 billion outflow during January-March 2025. 
• Nifty’s recent 12% rally since March 2025 leaves only a 2% upside to its year-end target of 25,000. This limited potential return is a key deterrent for FIIs.

• Kaiser Kuo hosts the Seneca Podcast, focusing on US-China relations, Chinese macroeconomy, technology, and culture
• Discussion on tech innovation in China and the process of directing talent towards more serious tech projects
• Cultural differences in approach to technology between Americans and Chinese discussed

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• Positive US-China talks and the de-escalation of tariffs signal a major softening by both sides.
• Expect momentum favourites to continue climbing as risk-on greenlights CTA factor buying.
• US Pharma rebounded with Trump executive order seen as toothless and vague.

• Pvr Inox (PVRINOX IN) reports wider Q4 loss due to weak film releases, urban spending slowdown, and decline in audience turnout.
• Indusind Bank (IIB IN) faces scrutiny over derivative accounting discrepancy, with auditors questioning if it should be classified as fraud.
• Shares of China+1 stocks, including Dixon Technologies India Ltd (DIXON IN) , Welspun, and SRF Ltd (SRF IN) , dip after US-China trade deal reduces tariff uncertainty.

• In the last week of April, US banks saw USD22bn higher ‘loans to non-depository financial institutions. Much of this will be C&I through private credit.
• Total cash holdings moved down in the same week from USD3,240bn to USD3,072bn, marking a significant delta in risk aversion – toward risk, not away.
• Deposits are still high at USD18,058bn which can move back into markets, where non-large time deposits appear to be doing this, over month of April