Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Japanese equities ended lower in a volatile week, pressured by global tech headwinds despite a strong Friday rally: Nikkei: -2.6% | TPX -1.2% | JPY 156 (+¥1.03) | 10Y 2.02%</li>
<li>Japan Steel Works (-15%), Fujikura (-14%), and Yaskawa (-13%) shares fell sharply this week on AI sentiment cooling and valuation worries; long-term themes in nuclear/defence, and AI/robotics remain intact.</li>
<li>Next week, thinned holiday trading expected; Friday's Tokyo CPI, unemployment, and retail sales data to test BoJ's post-rate-hike confidence.</li>
</ul>


Japanese equities ended lower in a volatile week, pressured by global tech headwinds despite a strong Friday rally: Nikkei: -2.6% | TPX -1.2% | JPY 156 (+¥1.03) | 10Y 2.02%
Japan Steel Works (-15%), Fujikura (-14%), and Yaskawa (-13%) shares fell sharply this week on AI sentiment cooling and valuation worries; long-term themes in nuclear/defence, and AI/robotics remain intact.
Next week, thinned holiday trading expected; Friday's Tokyo CPI, unemployment, and retail sales data to test BoJ's post-rate-hike confidence.


Japan Strategy Weekly | BoJ Hikes to 0.75% Amid Tech Headwinds; Nikkei -2.6%

<ul>
<li>US stocks rebounded, with the Nasdaq up 1.4%, as softer inflation and lower jobless claims boosted risk appetite and reinforced expectations for lower interest rates in 2026.</li>
<li>Micron surged 10% after issuing an upbeat revenue outlook, helping revive the artificial intelligence trade after recent weakness.</li>
<li>
<strong>Asahi</strong> shares fell 6% after a $3bn Diageo Africa deal, with investors worried about overpayment and leverage concerns, despite attractive growth, margins and long-term strategic benefits.</li>
</ul>


US stocks rebounded, with the Nasdaq up 1.4%, as softer inflation and lower jobless claims boosted risk appetite and reinforced expectations for lower interest rates in 2026.
Micron surged 10% after issuing an upbeat revenue outlook, helping revive the artificial intelligence trade after recent weakness.

Asahi shares fell 6% after a $3bn Diageo Africa deal, with investors worried about overpayment and leverage concerns, despite attractive growth, margins and long-term strategic benefits.


Ohayo Japan | Inflation Cools; AI Warms Up

<ul>
<li>US stocks fell as tech shares slid, with the Nasdaq down 1.8%, after a report said Oracle’s $10bn data centre project lost backing from Blue Owl Capital, reviving funding concerns.</li>
<li>Asahi Group will acquire 65% of Diageo’s East African business for ¥465bn, entering Kenya, Uganda and Tanzania, with FY25 sales of ¥155bn and completion expected in the 2H26.</li>
<li>Oasis Management disclosed an 8.5% stake in <strong>Ferrotec</strong>, attracted by its semiconductor exposure, low valuations and potential for corp action re-rating</li>
</ul>


US stocks fell as tech shares slid, with the Nasdaq down 1.8%, after a report said Oracle’s $10bn data centre project lost backing from Blue Owl Capital, reviving funding concerns.
Asahi Group will acquire 65% of Diageo’s East African business for ¥465bn, entering Kenya, Uganda and Tanzania, with FY25 sales of ¥155bn and completion expected in the 2H26.
Oasis Management disclosed an 8.5% stake in Ferrotec, attracted by its semiconductor exposure, low valuations and potential for corp action re-rating


Ohayo Japan | Oracle’s AI Build-Out: Who Pays the Bill?

<ul>
<li>US stocks closed mixed after November jobs added 64k (beat) but unemployment rose to 4.6%; Nasdaq +0.2% on Tesla record, S&amp;P -0.2%, Dow -0.6%; Ford took $19.5bn EV pivot charge.</li>
<li>Mitsui &amp; Co. (8031 JP) completed ¥800bn investment for 40% in Rhodes Ridge iron ore JV; production from 2030 at 40-50mtpa initially, expanding &gt;100mtpa;</li>
<li>ASKA Pharmaceutical trades below book value and at sub-6x EV/EBITDA with &gt;20% net cash; improved capital allocation, and potential PE sale as catalysts.</li>
</ul>


US stocks closed mixed after November jobs added 64k (beat) but unemployment rose to 4.6%; Nasdaq +0.2% on Tesla record, S&amp;P -0.2%, Dow -0.6%; Ford took $19.5bn EV pivot charge.
Mitsui &amp; Co. (8031 JP) completed ¥800bn investment for 40% in Rhodes Ridge iron ore JV; production from 2030 at 40-50mtpa initially, expanding &gt;100mtpa;
ASKA Pharmaceutical trades below book value and at sub-6x EV/EBITDA with &gt;20% net cash; improved capital allocation, and potential PE sale as catalysts.


Ohayo Japan | Stocks Close Mixed as Jobs Growth Offset by Rising Unemployment

<ul>
<li>U.S. stocks edged lower as AI leaders slid, dragging the S&amp;P 500, Nasdaq and Dow, while investors rotated into cyclicals and healthcare ahead of key delayed U.S. economic data.</li>
<li>Activist investors plan to lift their stake in Fuji Media Holdings to up to 33.3% unless progress is made on selling or separating its real estate business.</li>
<li>Hogy Medical shares jumped 17% after reports Carlyle seeks a $1bn take-private, an attractive exit for shareholders amid activist pressure, stagnant sales and declining earnings.</li>
</ul>


U.S. stocks edged lower as AI leaders slid, dragging the S&amp;P 500, Nasdaq and Dow, while investors rotated into cyclicals and healthcare ahead of key delayed U.S. economic data.
Activist investors plan to lift their stake in Fuji Media Holdings to up to 33.3% unless progress is made on selling or separating its real estate business.
Hogy Medical shares jumped 17% after reports Carlyle seeks a $1bn take-private, an attractive exit for shareholders amid activist pressure, stagnant sales and declining earnings.


Ohayo Japan | U.S. Stocks Slip as AI Leaders Weigh

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.