Daily BriefsJapan

Japan: SUMCO Corp, Nippon Paint Holdings, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

  • SUMCO (3436 JP): CEO Describes Tight Supply, Rising Prices
  • Index Rebalance & ETF Flow Recap: STI, LQ45, China 50/A50, FTSE, BBIG, BHP, LG Energy, Nippon Paint
  • Japan’s Governance: How Far Has Corporate Governance Improved in 2021 (5) – Change in % of INEDs

SUMCO (3436 JP): CEO Describes Tight Supply, Rising Prices

By Scott Foster

  • CEO Hashimoto told the Nikkei newspaper that customers are ordering silicon wafers at higher prices before they are made, even as production capacity is being increased.
  • SEMI and TSMC announcements point to rising wafer demand for at least another two years. SUMCO’s expansion plans suggest at least three years.
  • We continue to recommend buying into the current weakness for the medium to long term.

Index Rebalance & ETF Flow Recap: STI, LQ45, China 50/A50, FTSE, BBIG, BHP, LG Energy, Nippon Paint

By Brian Freitas

  • We look at potential changes to the STI, LQ45, FTSE China 50, FTSE AW/AC and KRX New Deal indices at the upcoming rebalances.
  • FTSE has announced a Ground Rule change for the FTSE China A50 Index. S&P DJI announced that the BHP Group (BHP AU) Unification would be implemented in one step.
  • All eyes will be on the LG Energy Solution (373220 KS) IPO for the next couple of weeks and we take a comprehensive look at potential index (fast) entries.

Japan’s Governance: How Far Has Corporate Governance Improved in 2021 (5) – Change in % of INEDs

By Aki Matsumoto

  • Companies that raised the % independent directors in 2021 improved both the nominating committee and compensation committee scores. This is in line with specific requirements of the revised CG Code.
  • Other than the percentage of independent directors, there were no changes in board practice measures that were positively correlated with significance affecting changes in other criteria.
  • I will examine whether passive events, such as revision of CG Code, will motivate companies to further improve their governance, or whether more companies will actively improve their governance.

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