Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Big capex plans for Google and good numbers for SK Hynix setting strong tone for AI related.</li>
<li>Momo names slid yesterday, although Ishiba heading for door may pressure heavies further.</li>
<li>Autos squeezed hard yesterday, but there should be more upside for names with elevated SI still.</li>
</ul>


Big capex plans for Google and good numbers for SK Hynix setting strong tone for AI related.
Momo names slid yesterday, although Ishiba heading for door may pressure heavies further.
Autos squeezed hard yesterday, but there should be more upside for names with elevated SI still.


Japan Morning Connection: US Liking JP and Expected EU Trade Deals, Expect Flows Back in Tech

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Tokio Marine &amp; Nichido Fire Insurance and Sompo Japan Insurance are looking to raise US$1.2bn by offloading their entire stakes in <a href="https://www.smartkarma.com/entities/suzuki-motor-corp" target="_blank" data-smartkarma-citation="entities:732:1" rel="noopener">Suzuki Motor</a> by way of a secondary offering.</li>
<li>
<a href="https://www.smartkarma.com/entities/suzuki-motor-corp" target="_blank" data-smartkarma-citation="entities:732:1" rel="noopener">Suzuki Motor (7269 JP)</a> stock is flat since the announcement of the placement but has underperformed its peers and the <a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener">TSE Tokyo Price Index TOPIX (TPX INDEX)</a>. </li>
<li>With the placement being less than 5% of the number of shares outstanding, there is unlikely to be any immediate passive inflow which could pressure the stock.</li>
</ul>


Tokio Marine &amp; Nichido Fire Insurance and Sompo Japan Insurance are looking to raise US$1.2bn by offloading their entire stakes in Suzuki Motor by way of a secondary offering.

Suzuki Motor (7269 JP) stock is flat since the announcement of the placement but has underperformed its peers and the TSE Tokyo Price Index TOPIX (TPX INDEX). 
With the placement being less than 5% of the number of shares outstanding, there is unlikely to be any immediate passive inflow which could pressure the stock.


Suzuki Motor (7269 JP) Placement: Likely to Price Today; 7-8% Underperformance Vs Peers/TOPIX

<ul>
<li>Tokio Marine &amp; Nichido Fire Insurance and Sompo Japan Insurance are looking to offload their entire stakes in <a href="https://www.smartkarma.com/entities/suzuki-motor-corp" target="_blank" data-smartkarma-citation="entities:732:1" rel="noopener">Suzuki Motor (7269 JP)</a> by way of a secondary offering.</li>
<li>With the size of the secondary offering less than 5% of the number of shares, there could be no index buying in the short-term and that will pressure the stock.</li>
<li>If the overallotment option is exercised and the seller of the shares is currently considered as non-float, there could be small passive buying in the short-term.</li>
</ul>


Tokio Marine &amp; Nichido Fire Insurance and Sompo Japan Insurance are looking to offload their entire stakes in Suzuki Motor (7269 JP) by way of a secondary offering.
With the size of the secondary offering less than 5% of the number of shares, there could be no index buying in the short-term and that will pressure the stock.
If the overallotment option is exercised and the seller of the shares is currently considered as non-float, there could be small passive buying in the short-term.


Suzuki Motor (7269 JP) Placement: Limited Index Buying & Weak Markets Could Pressure Stock

<ul>
<li>Tech is off the menu for most as CoreWeave shakes AI sentiment further.</li>
<li>Japanese autos largely priced in the tariff news yesterday, although big dividends up for grabs may see renewed interest.</li>
<li>Japan set for another day of duck-and-cover with the rotation back towards domestic defensive set to continue.</li>
</ul>


Tech is off the menu for most as CoreWeave shakes AI sentiment further.
Japanese autos largely priced in the tariff news yesterday, although big dividends up for grabs may see renewed interest.
Japan set for another day of duck-and-cover with the rotation back towards domestic defensive set to continue.


Japan Morning Connection: US Auto Tariffs Shaking Markets but Ex-Date May Lure Buyers Back in Japan

<ul>
<li>Japan SPE set for a good start with Google's AI spend starting to pay off.</li>
<li>Corning's beat continues to point to more upside for one of Japan's best performing names YTD.</li>
<li>Capcom weakness may be a buy the dip situation, with a clear run into their most popular franchise release.</li>
</ul>


Japan SPE set for a good start with Google's AI spend starting to pay off.
Corning's beat continues to point to more upside for one of Japan's best performing names YTD.
Capcom weakness may be a buy the dip situation, with a clear run into their most popular franchise release.


Japan Morning Connection: Google Sets a Good Tone for Japan SPE

Japan

Subaru Corp manufactures passenger cars, buses, motor vehicle parts, and industrial machinery.  The Company also produces aircraft parts and supplies it to defense agency and Boeing Co.  The Company sells its passenger cars under the Subaru brand name.

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Subaru Corp (7270 JP)

Japan Morning Connection: US Liking JP and Expected EU Trade Deals, Expect Flows Back in Tech

With reversal from momentum and Ishiba's resignation, defense names may drop further. Autos may have plenty more upside despite big moves yesterday.

Andrew Jackson

Suzuki Motor (7269 JP) Placement: Likely to Price Today; 7-8% Underperformance Vs Peers/TOPIX

Suzuki Motor has underperformed its peers by 6.8% and the TOPIX by 7.8% since the placement announcement. Suzuki has a near zero exposure to the...

Brian Freitas

Suzuki Motor (7269 JP) Placement: Limited Index Buying & Weak Markets Could Pressure Stock

Two large holders are looking to sell their entire stakes in Suzuki Motor. That is US$1.17bn including overallotment and 4.87% of shares out. That...

Brian Freitas

Japan Morning Connection: US Auto Tariffs Shaking Markets but Ex-Date May Lure Buyers Back in Japan

CoreWeave's announcement drives AI sentiment down further. May see renewed interest in Japanese autos today. Expecting Japan to continue rotation...

Andrew Jackson

Japan Morning Connection: Google Sets a Good Tone for Japan SPE

Positive for SPE as Google's AI investment starts to pays off, Corning's success indicates growth potential for Fujikura, and Capcom's dip could be...

Andrew Jackson

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52-week Range

Market Cap (USDm)

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Japan Morning Connection: US Liking JP and Expected EU Trade Deals, Expect Flows Back in Tech

With reversal from momentum and Ishiba's resignation, defense names may drop further. Autos may have plenty more upside despite big moves yesterday.

Andrew Jackson

Suzuki Motor (7269 JP) Placement: Likely to Price Today; 7-8% Underperformance Vs Peers/TOPIX

Suzuki Motor has underperformed its peers by 6.8% and the TOPIX by 7.8% since the placement announcement. Suzuki has a near zero exposure to the...

Brian Freitas

Suzuki Motor (7269 JP) Placement: Limited Index Buying & Weak Markets Could Pressure Stock

Two large holders are looking to sell their entire stakes in Suzuki Motor. That is US$1.17bn including overallotment and 4.87% of shares out. That...

Brian Freitas

Japan Morning Connection: US Auto Tariffs Shaking Markets but Ex-Date May Lure Buyers Back in Japan

​CoreWeave's announcement drives AI sentiment down further. May see renewed interest in Japanese autos today. Expecting Japan to continue rotation...

Andrew Jackson

Japan Morning Connection: Google Sets a Good Tone for Japan SPE

Positive for SPE as Google's AI investment starts to pays off, Corning's success indicates growth potential for Fujikura, and Capcom's dip could be...

Andrew Jackson

CoreWeave's announcement drives AI sentiment down further. May see renewed interest in Japanese autos today. Expecting Japan to continue rotation...