Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.</li>
<li>Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.</li>
<li>Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.</li>
</ul>


Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.
Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.
Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.


Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

<ul>
<li>The nascent AI rebound hit a roadblock overnight just as it was starting to draw a momentum bid again after the recent meltdown.</li>
<li>Server and DC infra/optical names which had been doing quite well MTD took an absolute beating as the risk-on bid evaporated overnight.</li>
<li>A sour tone for memory after SK -9.2%, Seagate -9.2% and Sandisk -9%.</li>
</ul>


The nascent AI rebound hit a roadblock overnight just as it was starting to draw a momentum bid again after the recent meltdown.
Server and DC infra/optical names which had been doing quite well MTD took an absolute beating as the risk-on bid evaporated overnight.
A sour tone for memory after SK -9.2%, Seagate -9.2% and Sandisk -9%.


Japan Morning Connection: Brace for a Rocky Start as AI Rebound Proves Short-Lived

<ul>
<li>SEI looks like a laggard target, up only 25% from its lows versus Furukawa and Fujikura's 60% rebound.</li>
<li>Kioxia looks like it could have plenty of room to rebound on a return to momentum chasing with it still -45% from the recent highs.</li>
<li>QPS and Astroscale worth watching with SpaceX's 4.4% gain overnight, lifting sentiment for smaller space names.</li>
</ul>


SEI looks like a laggard target, up only 25% from its lows versus Furukawa and Fujikura's 60% rebound.
Kioxia looks like it could have plenty of room to rebound on a return to momentum chasing with it still -45% from the recent highs.
QPS and Astroscale worth watching with SpaceX's 4.4% gain overnight, lifting sentiment for smaller space names.


Japan Morning Connection: SEI Could Emerge as a Laggard Target as Optical/Cable Sector Heats Up

<ul>
<li>Kioxia likely to see another strong day after Sandisk was +13.7% after announcing positive long-term guidance.</li>
<li>SPE may face pressure after AMAT's guidance beat failed to impress despite topping estimates.</li>
<li>Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100%.</li>
</ul>


Kioxia likely to see another strong day after Sandisk was +13.7% after announcing positive long-term guidance.
SPE may face pressure after AMAT's guidance beat failed to impress despite topping estimates.
Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100%.


Japan Morning Connection: Liberware and Terradrone Stand to Gain as US Targets Chinese Drone Makers

<ul>
<li>QD Laser, Seiko Giken and Santec may see gains after Lumentum's strong beat lifted optical peers.</li>
<li>Kioxia is set for more of a rebound as memory rallied overnight, with the stock still forming a base after a 68% drawdown from June highs.</li>
<li>From its May highs.Astroscale may see some recovery after SpaceX's +9.6% overnight gain, with the stock still down 57% from its May highs.</li>
</ul>


QD Laser, Seiko Giken and Santec may see gains after Lumentum's strong beat lifted optical peers.
Kioxia is set for more of a rebound as memory rallied overnight, with the stock still forming a base after a 68% drawdown from June highs.
From its May highs.Astroscale may see some recovery after SpaceX's +9.6% overnight gain, with the stock still down 57% from its May highs.


Japan Morning Connection: QD Laser May Recover From Earnings Miss on Positive Lumentum Read-Through

Trading Japanese equities since 2004 I have worked at several firms in Tokyo, HK and currently Singapore. My main focus since 2015 has been on fundamentally driven, sector neutral L/S strategies for the large-cap Japan universe, with a tilt towards the tech and industrial sectors.

Andrew Jackson
Japanese Equity Specialist
• Ortus Advisors

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Japan Morning Connection: Brace for a Rocky Start as AI Rebound Proves Short-Lived

The nascent AI rebound hit a roadblock overnight just as it was starting to draw a momentum bid again after the recent meltdown. A sour tone for...

Andrew Jackson

Japan Morning Connection: SEI Could Emerge as a Laggard Target as Optical/Cable Sector Heats Up

Optical and cable names look increasingly attractive after their recent collapse as they rebound off the lows and start to re-bucket themselves as...

Andrew Jackson

Japan Morning Connection: Liberware and Terradrone Stand to Gain as US Targets Chinese Drone Makers

Liberware and Terradrone may gain a competitive edge after new US tariffs target Chinese drone makers at up to 100% while SPE may face pressure...

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Japan Morning Connection: QD Laser May Recover From Earnings Miss on Positive Lumentum Read-Through

QD Laser may recover from its earnings miss on a strong Lumentum read-through, after Lumentum's blowout guidance lifted optical peers Ciena, Cisco...

Andrew Jackson