Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>U.S. stocks were mixed as soft labor data and tech gains boosted hopes for Fed easing, despite corporate layoffs and policy uncertainty, with investors awaiting Friday’s key PCE inflation report.</li>
<li>Tech outperformed as Meta jumped on planned metaverse cutbacks, Nvidia gained over 2%, and Salesforce rose on a stronger outlook.</li>
<li>Japanese automakers rallied after Trump scrapped Biden’s fuel-efficiency rules, boosting prospects for conventional powertrains and benefiting Subaru’s U.S.-focused lineup. </li>
</ul>


U.S. stocks were mixed as soft labor data and tech gains boosted hopes for Fed easing, despite corporate layoffs and policy uncertainty, with investors awaiting Friday’s key PCE inflation report.
Tech outperformed as Meta jumped on planned metaverse cutbacks, Nvidia gained over 2%, and Salesforce rose on a stronger outlook.
Japanese automakers rallied after Trump scrapped Biden’s fuel-efficiency rules, boosting prospects for conventional powertrains and benefiting Subaru’s U.S.-focused lineup. 


Ohayo Japan | Markets Mixed, Rate-Cut Bets Rise, Tech Outperforms

<ul>
<li>Stocks advanced on Wednesday as a sharp 32,000 drop in ADP private payrolls reinforced expectations that the Federal Reserve will cut rates next week</li>
<li>JFE Holdings (5411 JP) will invest ¥270bn for a 50% stake in Bhushan Power &amp; Steel, targeting expansion to 10mtpa by 2030 through tech transfer and ore access.</li>
<li>Fanuc (6954 JP) is shifting toward open, AI-enabled automation through ROS 2 integration and expanded Nvidia partnerships, enhancing interoperability and positioning the company to capture long-term smart-factory growth.</li>
</ul>


Stocks advanced on Wednesday as a sharp 32,000 drop in ADP private payrolls reinforced expectations that the Federal Reserve will cut rates next week
JFE Holdings (5411 JP) will invest ¥270bn for a 50% stake in Bhushan Power &amp; Steel, targeting expansion to 10mtpa by 2030 through tech transfer and ore access.
Fanuc (6954 JP) is shifting toward open, AI-enabled automation through ROS 2 integration and expanded Nvidia partnerships, enhancing interoperability and positioning the company to capture long-term smart-factory growth.


Ohayo Japan | Payroll Drop Drives Fed-Cut Bets as Financials Rally and AI Stocks Lag

<ul>
<li>Stocks rebounded on stronger crypto and AI momentum, upbeat guidance from Microchip and Boeing, and rising Fed-cut optimism.</li>
<li>Mitsubishi Electric will triple optical semiconductor capacity by FY2028 by reallocating power chip capex, pivoting toward AI-driven data-center demand amid slowing EV growth.</li>
<li>Uniqlo Japan’s November same-store sales rose 7.6% year over year, extending Q1 revenue strength and supporting profit upside, though recent share gains suggest good news is priced in.</li>
</ul>


Stocks rebounded on stronger crypto and AI momentum, upbeat guidance from Microchip and Boeing, and rising Fed-cut optimism.
Mitsubishi Electric will triple optical semiconductor capacity by FY2028 by reallocating power chip capex, pivoting toward AI-driven data-center demand amid slowing EV growth.
Uniqlo Japan’s November same-store sales rose 7.6% year over year, extending Q1 revenue strength and supporting profit upside, though recent share gains suggest good news is priced in.


Ohayo Japan | Bitcoin Bounce Lifts Stocks

<ul>
<li>US equities opened December lower as risk-off prevailed; bitcoin -7%, safe-havens gained, while markets price high odds of Fed cut next week.</li>
<li>
Yaskawa partners SoftBank on AI autonomous service robots, while FANUC teams with NVIDIA on AI-embedded industrial robots to accelerate physical AI adoption.</li>
<li>
MHI (7011 JP): 16% pullback reflects fading Takaichi trade; structural defence tailwinds remain intact as Japan’s contractors grew revenues 40% amid record $679bn global arms sales.</li>
</ul>


US equities opened December lower as risk-off prevailed; bitcoin -7%, safe-havens gained, while markets price high odds of Fed cut next week.

Yaskawa partners SoftBank on AI autonomous service robots, while FANUC teams with NVIDIA on AI-embedded industrial robots to accelerate physical AI adoption.

MHI (7011 JP): 16% pullback reflects fading Takaichi trade; structural defence tailwinds remain intact as Japan’s contractors grew revenues 40% amid record $679bn global arms sales.


Ohayo Japan | Risk Appetite Fades as Bitcoin Sells Off

<ul>
<li>Fed December rate cut probability at 86.9%; FOMC meets Dec 9-10.</li>
<li>Kevin Hassett emerging as frontrunner to succeed Jerome Powell as Fed Chair.</li>
<li>Asics denied Puma bid rumours after a 2.2% dip, refocusing attention on its superior organic growth and premium valuation despite China consumer risks</li>
</ul>


Fed December rate cut probability at 86.9%; FOMC meets Dec 9-10.
Kevin Hassett emerging as frontrunner to succeed Jerome Powell as Fed Chair.
Asics denied Puma bid rumours after a 2.2% dip, refocusing attention on its superior organic growth and premium valuation despite China consumer risks


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.