Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Amidst cautious anticipation of impending inflation data, the U.S. markets saw minimal movement on Monday</li>
<li>The Bank of Japan signaled a hawkish stance by cutting its purchase of Japanese government bonds; the move suggests potential interest rate hikes following the first increase since 2007.</li>
<li>Softbank shifts its business model towards AI-focused ventures, aiming to lead the AI revolution.</li>
</ul>


Amidst cautious anticipation of impending inflation data, the U.S. markets saw minimal movement on Monday
The Bank of Japan signaled a hawkish stance by cutting its purchase of Japanese government bonds; the move suggests potential interest rate hikes following the first increase since 2007.
Softbank shifts its business model towards AI-focused ventures, aiming to lead the AI revolution.


<ul>
<li>The Dow extended its winning streak to eight sessions, marking its best week of the year.</li>
<li>U.S. central bank is likely to proceed with interest rate cuts this year, although the timing and magnitude of the policy adjustments are uncertain</li>
<li>Toyota plans to sell part of its stake in KDDI for approximately 200 billion yen, intending to fund investments in car electrification</li>
</ul>


The Dow extended its winning streak to eight sessions, marking its best week of the year.
U.S. central bank is likely to proceed with interest rate cuts this year, although the timing and magnitude of the policy adjustments are uncertain
Toyota plans to sell part of its stake in KDDI for approximately 200 billion yen, intending to fund investments in car electrification


<ul>
<li>Japanese equity indices and 10-year JGB yields remain flat as overseas markets benefit from positive earnings and softer labor data in the US.</li>
<li>Topix 500 earnings reports influence individual equity movements with around 50% reported; remainder expected next week.</li>
<li>Notable stock movements include Relo Group (+22%), Kose (+22%), and Kawasaki Heavy Industries (+21%), with earnings exceeding expectations, while Seibu Holdings (-16%) faces uncertainties in its real estate strategy.</li>
</ul>


Japanese equity indices and 10-year JGB yields remain flat as overseas markets benefit from positive earnings and softer labor data in the US.
Topix 500 earnings reports influence individual equity movements with around 50% reported; remainder expected next week.
Notable stock movements include Relo Group (+22%), Kose (+22%), and Kawasaki Heavy Industries (+21%), with earnings exceeding expectations, while Seibu Holdings (-16%) faces uncertainties in its real estate strategy.


<ul>
<li>Stocks surged Thursday, extending the Dow Jones Industrial Average's winning streak to seven days</li>
<li>Japan's major trading houses aim for double-digit returns on equity (ROE) by optimizing portfolios and enhancing shareholder returns.</li>
<li>Sony Group, among other interested parties, is exploring the acquisition of online comic store operator Infocom Corp, with a potential deal valued at up to 200 billion yen</li>
</ul>


Stocks surged Thursday, extending the Dow Jones Industrial Average's winning streak to seven days
Japan's major trading houses aim for double-digit returns on equity (ROE) by optimizing portfolios and enhancing shareholder returns.
Sony Group, among other interested parties, is exploring the acquisition of online comic store operator Infocom Corp, with a potential deal valued at up to 200 billion yen


Equity Bottom-Up

DAIKIN INDUSTRIES, LTD. manufactures air conditioning equipment for household and commercial use.  The Company also produces fluorine chemical products such as fluorinated hydrocarbon gas and shells and warheads for defense industry.

<ul>
<li>FY2023 Success: Daikin achieved record-high sales and profit, driven by FX impacts. Despite challenges like reduced demand, the Air Conditioning business expanded in key markets.</li>
<li>Ambitious Targets: FY3/25 targets include surpassing previous financial records, despite continued sluggish demand.</li>
<li>Cautious Outlook: While optimistic about market share gains, reservations persist, particularly regarding heat pumps. Stock performance remains steady, trading in line with historical averages.</li>
</ul>


FY2023 Success: Daikin achieved record-high sales and profit, driven by FX impacts. Despite challenges like reduced demand, the Air Conditioning business expanded in key markets.
Ambitious Targets: FY3/25 targets include surpassing previous financial records, despite continued sluggish demand.
Cautious Outlook: While optimistic about market share gains, reservations persist, particularly regarding heat pumps. Stock performance remains steady, trading in line with historical averages.


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.