Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Japanese stocks limped towards the end of the quarter, with Topix ending the week -2.2% lower. Bond yields hit 10 year high and yen ended play at Y149/$</li>
<li>Economic momentum may be slowing and tech stocks plumbing new lows, but Oracle Japan surprised the market with 12% top line growth in the first quarter. </li>
<li>Yet more foreign / activist buying in the drug store sector. Consolidation is the story and Orbis want to write the ending.</li>
</ul>


Japanese stocks limped towards the end of the quarter, with Topix ending the week -2.2% lower. Bond yields hit 10 year high and yen ended play at Y149/$
Economic momentum may be slowing and tech stocks plumbing new lows, but Oracle Japan surprised the market with 12% top line growth in the first quarter. 
Yet more foreign / activist buying in the drug store sector. Consolidation is the story and Orbis want to write the ending.


Japan Weekly | Stocks Slump, Oracle Outperforms, Activists Accumulate

<ul>
<li>OVERSEAS: US stocks +0.6% - its all macro at the moment - higher interest rates, oil price volatility; US 30y mortgage rates now at 7.3%; Nike earnings beat </li>
<li>JAPAN: NKY Futures +0.4% vs cash. Toyota Aug production +4%; EPCOs to lower residential electricity prices; Sony's Game unit gets new interim boss. </li>
<li>JAPAN X: Daikin's concerns about the UK Government backtracking on its climate pledge highlight our concerns over heat pump adoption</li>
</ul>


OVERSEAS: US stocks +0.6% - its all macro at the moment - higher interest rates, oil price volatility; US 30y mortgage rates now at 7.3%; Nike earnings beat 
JAPAN: NKY Futures +0.4% vs cash. Toyota Aug production +4%; EPCOs to lower residential electricity prices; Sony's Game unit gets new interim boss. 
JAPAN X: Daikin's concerns about the UK Government backtracking on its climate pledge highlight our concerns over heat pump adoption


Ohayo Japan: Stocks & SOX Higher; JapanX - Delayed UK Climate Plans Threaten Heat Pump Adoption

Equity Bottom-Up

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

<ul>
<li>Asics is due to report on 8th August. We expect another strong quarter and guidance revision</li>
<li>Recent results from Nike bode well for Asics – declining inventories and strong top line performance in China</li>
<li>We believe that higher operating margins will be the key stock driver and see 10% upside to fair value</li>
</ul>


Asics is due to report on 8th August. We expect another strong quarter and guidance revision
Recent results from Nike bode well for Asics – declining inventories and strong top line performance in China
We believe that higher operating margins will be the key stock driver and see 10% upside to fair value


Asics (7936) | Q2 Preview; Guidance Revision

<ul>
<li>OVERSEAS: SPX flat, Dow -0.2%. Energy stocks best performers on higher oil prices. Micron down after results</li>
<li>JAPAN: NKY futures -0.9% vs cash. JPY 149.7/$; Mitsubishi Motors to quit production in China; </li>
<li>JAPAN X: With steel making accounting for almost half of Japan's industrial CO2 emissions, both government and corporates are moving in the right direction</li>
</ul>


OVERSEAS: SPX flat, Dow -0.2%. Energy stocks best performers on higher oil prices. Micron down after results
JAPAN: NKY futures -0.9% vs cash. JPY 149.7/$; Mitsubishi Motors to quit production in China; 
JAPAN X: With steel making accounting for almost half of Japan's industrial CO2 emissions, both government and corporates are moving in the right direction


Ohayo Japan: US Stocks Mixed; JapanX - Steelmakers Forging a Better Future

<ul>
<li>OVERSEAS: SPX -1.5%; weak consumer confidence; weak new home sales; and Dimon warning of 7% rates</li>
<li>JAPAN: NKY futs -1.3% vs cash; JPY 149.1/$. Kao to sell-off brands on cosmetics slump</li>
<li>JAPAN X: The issue of overboarding in Japan is becoming a big problem, more so given needs to diversify the board</li>
</ul>


OVERSEAS: SPX -1.5%; weak consumer confidence; weak new home sales; and Dimon warning of 7% rates
JAPAN: NKY futs -1.3% vs cash; JPY 149.1/$. Kao to sell-off brands on cosmetics slump
JAPAN X: The issue of overboarding in Japan is becoming a big problem, more so given needs to diversify the board


Ohayo Japan: US Stocks Slide; Japan X: Gender Diversity and Overboarding A Dual Challenge

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Mark Chadwick
Japan Specialist

Japan Weekly | Stocks Slump, Oracle Outperforms, Activists Accumulate

Japanese stocks struggle as quarter ends, with Topix down 2.2%. Oracle Japan defies tech stock trend with 12% revenue growth. Foreign investors...

Mark Chadwick

Ohayo Japan: Stocks & SOX Higher; JapanX - Delayed UK Climate Plans Threaten Heat Pump Adoption

US stocks rise despite concerns over higher interest rates; Nike earnings exceed expectations. In Japan, Toyota's production increases and EPCOs...

Mark Chadwick

Asics (7936) | Q2 Preview; Guidance Revision

Nike reported 1Q23 earnings. Revenue +2% to $12.9b (in line ). Gross margin came in at 44.2% (better than expected 43.7%). EPS +1% to $0.94 (far...

Mark Chadwick

Ohayo Japan: US Stocks Mixed; JapanX - Steelmakers Forging a Better Future

Global stock markets are mostly steady, with energy stocks performing well due to higher oil prices, while Micron declines post results. .

Mark Chadwick

Ohayo Japan: US Stocks Slide; Japan X: Gender Diversity and Overboarding A Dual Challenge

Weak consumer confidence, weak new home sales, and a warning of 7% rates contribute to SPX -1.5% overseas. In Japan, NKY futs -1.3% vs cash, JPY...

Mark Chadwick

Japan Weekly | Stocks Slump, Oracle Outperforms, Activists Accumulate

​Japanese stocks struggle as quarter ends, with Topix down 2.2%. Oracle Japan defies tech stock trend with 12% revenue growth. Foreign investors...

Mark Chadwick

Ohayo Japan: Stocks & SOX Higher; JapanX - Delayed UK Climate Plans Threaten Heat Pump Adoption

​US stocks rise despite concerns over higher interest rates; Nike earnings exceed expectations. In Japan, Toyota's production increases and EPCOs...

Mark Chadwick

Asics (7936) | Q2 Preview; Guidance Revision

Nike reported 1Q23 earnings. Revenue +2% to $12.9b (in line ). Gross margin came in at 44.2% (better than expected 43.7%). EPS +1% to $0.94 (far...

Mark Chadwick

Ohayo Japan: US Stocks Mixed; JapanX - Steelmakers Forging a Better Future

​Global stock markets are mostly steady, with energy stocks performing well due to higher oil prices, while Micron declines post results. .

Mark Chadwick

Ohayo Japan: US Stocks Slide; Japan X: Gender Diversity and Overboarding A Dual Challenge

​Weak consumer confidence, weak new home sales, and a warning of 7% rates contribute to SPX -1.5% overseas. In Japan, NKY futs -1.3% vs cash, JPY...

Mark Chadwick

Japanese stocks struggle as quarter ends, with Topix down 2.2%. Oracle Japan defies tech stock trend with 12% revenue growth. Foreign investors...

US stocks rise despite concerns over higher interest rates; Nike earnings exceed expectations. In Japan, Toyota's production increases and EPCOs...

Global stock markets are mostly steady, with energy stocks performing well due to higher oil prices, while Micron declines post results. .

Weak consumer confidence, weak new home sales, and a warning of 7% rates contribute to SPX -1.5% overseas. In Japan, NKY futs -1.3% vs cash, JPY...