Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  SPX close flat and keeps the 4100 support; CPI inline but Rates higher; USD stronger as Fed Hawks back out; Telsa +7% Bullish Initiation; Boeing Again-massive India order.</li>
<li>JAPAN.  Nikkei Futures +0.5% vs Cash; USDJPY weakens to 133. 15;  BOJ Governor designate nominated but with weak GDP print, don't expect much chg ST; Massive ShareBuyback  from  Idemetsu Kosan</li>
<li>DAILY NUGGET. Global EV Sales in 2022  was $388 billion, +58%YoY. Is this what it will take to get to Japanese OEM to step on the gas ?</li>
</ul>


OVERSEAS.  SPX close flat and keeps the 4100 support; CPI inline but Rates higher; USD stronger as Fed Hawks back out; Telsa +7% Bullish Initiation; Boeing Again-massive India order.
JAPAN.  Nikkei Futures +0.5% vs Cash; USDJPY weakens to 133. 15;  BOJ Governor designate nominated but with weak GDP print, don't expect much chg ST; Massive ShareBuyback  from  Idemetsu Kosan
DAILY NUGGET. Global EV Sales in 2022  was $388 billion, +58%YoY. Is this what it will take to get to Japanese OEM to step on the gas ?


Good Morning Japan |SPX Holds Key 4100 Level in Choppy Session Post CPI; EVs-Where Are the Japanese?

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>This week we digest key takeaways from some of the latest key industry results that came out (ASE Technologies (TW), Novatek (TW), and Tokyo Electron (JP)).</li>
<li>ASE and Tokyo Electron exhibited their insulated positions during the current inventory corrections happening, delivering decent margins and beating expectations. Novatek also beat expectations.</li>
<li>Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus view, however?</li>
</ul>


This week we digest key takeaways from some of the latest key industry results that came out (ASE Technologies (TW), Novatek (TW), and Tokyo Electron (JP)).
ASE and Tokyo Electron exhibited their insulated positions during the current inventory corrections happening, delivering decent margins and beating expectations. Novatek also beat expectations.
Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus view, however?


Taiwan Tech Weekly: Latest Key Results Add More Expectations for a 2H23E Turnaround

<ul>
<li>OVERSEAS.  SPX  stays positive; Energy leads as Russia cuts oil production; CPI print in focus - as market looks for Fed Pause clues; TEREX - solid print/outlook..what Recession?</li>
<li>JAPAN. NKY Fut -0.3% vs Cash;  USDJPY 131.36; Shock at Professor Ueda as BOJ Gov; Yen rallies then weakens post his Presser;  Govt to guarantee 15% margins for Defense suppliers?</li>
<li>DAILY NUGGET. Fun take - ChatGPT on BOJ Governor to be Kazuo Ueda.</li>
</ul>


OVERSEAS.  SPX  stays positive; Energy leads as Russia cuts oil production; CPI print in focus - as market looks for Fed Pause clues; TEREX - solid print/outlook..what Recession?
JAPAN. NKY Fut -0.3% vs Cash;  USDJPY 131.36; Shock at Professor Ueda as BOJ Gov; Yen rallies then weakens post his Presser;  Govt to guarantee 15% margins for Defense suppliers?
DAILY NUGGET. Fun take - ChatGPT on BOJ Governor to be Kazuo Ueda.


Good Morning Japan |SPX Hangs on Ahead of Key CPI Print; BOJ Gov Candidate Shocker->ChatGPT's View

Independent Insight Provider, Japanese equities, LightStream Research

Scott Foster

Independent Insight Provider, Japanese equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>The market welcomed TEL's 3Q results and new guidance, but sales, profits and margins continue to decline year-on-year.</li>
<li>An optimistic consensus sees a new cyclical high in the second half of the decade, but avoids the question of disengagement from China.</li>
<li>Inventories are at a record high. Valuations out to FY Mar-25 do not look attractive. </li>
</ul>


The market welcomed TEL's 3Q results and new guidance, but sales, profits and margins continue to decline year-on-year.
An optimistic consensus sees a new cyclical high in the second half of the decade, but avoids the question of disengagement from China.
Inventories are at a record high. Valuations out to FY Mar-25 do not look attractive. 


Tokyo Electron (8035 JP): MAGIC Versus Reality

<ul>
<li>OVERSEAS.  Back to Macro US Equities Refocus on Rate rises; SPX breaches 4100 support; US 2Yr Yields hit 2.5% - need to watch this;  TESLA back as shares Px doubles! </li>
<li>JAPAN. NKY Futs -0.2% vs Cash; USDJPY 131.62; New BOJ Governor nominees  by Feb 14; Apple/Google warned  by Japan FTC;  Earnings Festival: Positive TEL; Renesas; Nippon Steel </li>
<li>DAILY NUGGET. Chart of the Day: Tokyo Electron(8035) share price has underperformed vs US Peer AMAT. BTE Results could close the Gap</li>
</ul>


OVERSEAS.  Back to Macro US Equities Refocus on Rate rises; SPX breaches 4100 support; US 2Yr Yields hit 2.5% - need to watch this;  TESLA back as shares Px doubles! 
JAPAN. NKY Futs -0.2% vs Cash; USDJPY 131.62; New BOJ Governor nominees  by Feb 14; Apple/Google warned  by Japan FTC;  Earnings Festival: Positive TEL; Renesas; Nippon Steel 
DAILY NUGGET. Chart of the Day: Tokyo Electron(8035) share price has underperformed vs US Peer AMAT. BTE Results could close the Gap


Good Morning Japan |Equity Losses Again on Rate Hike Refocus;Japan Earnings Deluge>500 Stocks on Tap

Japan

Tokyo Electron Limited manufactures and sells industrial electronics products, such as semiconductor manufacturing machines, computer system, and electronic components.  The Company products are sold in US, Taiwan, and others as well as in Japan.

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Tokyo Electron (8035 JP)

Good Morning Japan |SPX Holds Key 4100 Level in Choppy Session Post CPI; EVs-Where Are the Japanese?

CPI leaves markets confused, but Beta and cycliclals bid anwyay. Nikkei Futures +0.5% vs Cash; BOJ Governor designate nominated but with weak GDP...

Mark Chadwick

Taiwan Tech Weekly: Latest Key Results Add More Expectations for a 2H23E Turnaround

Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus...

Vincent Fernando, CFA

Good Morning Japan |SPX Hangs on Ahead of Key CPI Print; BOJ Gov Candidate Shocker->ChatGPT's View

US CPI in focus; BOJ Surprise Nominee - do not expect anything revolutonary. After Gov designate Ueda's news conference on Friday, that market has...

Mark Chadwick