Thematic (Sector/Industry)

• Tech-Driven gains pushed the S&P 500 up by 0.74%, while the Nasdaq Composite hit a record high, surging 1.68%
• Japanese Prime Minister Fumio Kishida addressed U.S. legislators, emphasizing Japan’s readiness to share the responsibility of upholding the international order
• Fujifilm Holdings plans to invest $4.5 billion by 2028 to expand its biopharmaceutical contract manufacturing business

• Australia domestic credit growth is now at -2.2% YoY in January 2024, the worst figure since August 2021.
• There are negative implications for the delta of net interest income for Australia’s banks as loan growth moves negative.
• Risk of rising credit costs is higher, not only from worsening insolvencies with corporates, but also with rising mortgage bad loans.

• From ancient rituals to modern medicine. Psilocybin is a natural psychedelic compound contained in more than 200 species of (magic) mushrooms that grow in diverse natural environments worldwide, from humid tropical forests to grassy meadows to urban green spaces.
• Psilocybin has a long history of use in religious rituals and divinatory ceremonies of indigenous cultures going back millennia, but in more modern times has attracted a growing interest from modern medicine for its potential therapeutic effects on the neural pathways.

• The properties of psilocybin and its active form psilocin closely resemble serotonin.

• To an Australian individual investor, franking credits simply recognise tax already paid by a company on their earnings. These credits may reduce tax you would otherwise pay on dividend income.
• This dividend imputation system prevents double taxation and essentially treats company tax paid as a prepayment of shareholder tax.
• The system makes a lot of sense. It’s a curious thing so few countries have adopted a similar corporate tax structure.

• Y/Y improvement for LCD, PMIC, GaAs RF, gaming card, cooling system, semi equipment&material, semi fab construction, memory, and foundry vendors but more y/y deterioration for WiFi and CMOS sensor vendors
• After 6 vendors beating consensus, we might see AI server supply chain, large panel LCD driver, WiFi/networking, and NAND flash vendors in US to report a better than expected 1Q24.
• We might see 8″/12″ raw wafer (like Shin Etsu, SUMCO , National Silicon Industry, Siltronic AG) vendors in Japan, China, and Germany to report a worse than expected 1Q24.

• US stocks tumbled on Wednesday amid concerns sparked by higher-than-anticipated inflation
• The Japanese currency weakened to over 153 yen versus the dollar, a level not seen since 1990
• Seven & i Holdings unveiled plans to bolster its convenience store business in North America through mergers and acquisitions

• XPEV US/1211 HK：Didi Autonomous Driving and GAC Aion joint venture approved to launch first commercial L4 model in 2025（///）
• 3759 HK/1548 HK/9926 HK/BGNE US/9995 HK/1801 HK：U.S. biologic drug ban may spread to more CRO companies, positive to Chinese innovative drug companies（/）
• 1810 HK/1211 HK：Lei Jun announced that more than 100,000 people have ordered Xiaomi SU7, and the number of locked orders has exceeded 40,000.（///）

• Despite the frosty relationship with the US, Chinese exports to the US are thriving.
• Imports as a proxy of local activity were distorted by the Covid trade disruptions, however we expect the uptrend to remain intact.
• The pandemic resulted in an elevation of drug testing. Post a slowdown from the heightened level, development activity remains healthy.    

• 700 HK：Tencent’s <Need for Speed Mobile> is set to be released in 3Q24.(+)
• Douyin/3690 HK: Douyin to acquire payment license for local life services biz, implying heightened competition for Meituan.（-）
• TCOM: Railway passenger volume during Qingming holiday expected to reach 111% of 2019 level, showing a decline compared to the Spring Festival.

• US stocks in holding pattern ahead of March CPI report on Wednesday. NKY Futures point to lower open in Tokyo
• Microsoft plans to invest $2.9 billion in data centers in Japan by 2025, responding to Tokyo’s AI computing demand
• Seven & i Holdings mulls selling a stake in its superstore business, Ito-Yokado and York-Benimaru, by creating a new intermediate holding company

• Taiwan Dell said “AI GPU shortage issue has been resolved. The lead time has been cut from 40 weeks by the end of 2023 to 8-12 weeks or less now.
• We see this news short term positive but medium term negative to AI GPU supply chain vendors but need more information to confirm if this is an inflection point.
• 1. Taiwan Dell got priority supply? 2. Earlier overbooking over? 3. Lead time cut by supply upside? 4. Cooling company said the same; 5. Will lead time continue to shrink?

• This post examines China’s economic strategies and their impact on global trade and geopolitical dynamics, focusing on the shift from low-value-added goods to high-value-added industries like lithium-ion batteries, solar cells, and EVs.
• It highlights China’s approach of integrating economic and political strategies under the concept of “China, Inc.” where the state uses overcapacity as a strategic tool to further its geostrategic interests.
• The current Chinese export-led strategy challenges the principles of free trade, raises concerns about the sustainability of global economic interdependence, and is the basis for fear about China dumping industrial products on developed markets.

• Oil spot prices have gained at a relatively stable pace since the start of 2024, with crude prices rising close to 19% year to date.
• Robust demand due to recovery in economic activity across major markets has been a steady tailwind to oil prices despite the prevalent geo-political catalysts that have spurred across global markets.
• Globally listed oil and gas producers and service providers have therefore seen a marginal improvement in their aggregate credit risk profiles, with their Criat Credit Cycle Index (CCCI) dropping by close to 2bps over the same period.

• The WTR Sustainable Index was up down 1.5% W/W versus the S&P 500 Index (down 1.0%), the Russell 2000 Index (down 2.9%), and the Nasdaq Index (down 0.8%).
• Energy Technology (12.7% of the index) was down by 5.0%, while Industrial Climate and Ag Technology (57.1% of the index) was down by 1.0%, ClimateTech Mining was down by 1.9%, and Advanced Transportation Solutions (24.1% of index) was down by 1.2%.
• Top 10 Performers: VVPR, NEOV, KULR, ORGN, EGT, BLDE, WAVE, FAT, AQMS, HCNWF

• New SGX climate-related disclosure requirements based on ISSB’s standards are more stringent than current requirements, most notably regarding mandatory Scope 3 emissions reporting.
• The implications for S-REITs are significant. Real Estate is one of the most emissions-intensive sectors, and Scope 3 emissions comprise 85-95% of total emissions for real estate companies.
• Motivated by a strong “business case” for best-in-class climate performance and transparency, many S-REITs are ahead of the curve, evidenced by prominence in climate-related indexes.

• When will large-cap stocks rally? Will large-cap stocks outperform mid-caps and small-caps in 2024?  
• To answer this we have taken a look at certain fundamental parameters which can help you to make an overall informed decision.
• Interesting fact on large caps – As of FY22, the top 20 companies in India generate 80% of the total profits generated by India Inc

• Stocks closed Monday with minimal changes amid rising interest rates and anticipation of key U.S. inflation data
• The number of companies listed on the Tokyo Stock Exchange’s Prime market has decreased by 20% since the market restructuring two years ago
• Shin-Etsu Chemical Co Ltd (4063): Shin-Etsu Chemical will construct its first new plant in Japan in 56 years, aiming to bolster semiconductor supply chains

• We visit the small, sandy town of Phalodi known for its betting market known as “Satta Bazaar”. 
• The people of Phalodi bet on anything and have been known for making accurate predictions about major events like the Elections. 
• The pundits anticipate more traction in terms of their seat estimates starting from April 10th, 2024. The tentative estimates currently stand at 330-340 seats for the BJP.

• When there are not enough assets in the US to “store” the huge amount of dollar liquidity, the dollar reset would begin once the rate hike cycle peaks.
• The depreciation of dollar would be inevitable. The US commercial real estate default is drawing near. The climax of the US dollar’s troubles could come in 2026 and 2027.
• We don’t recommend investors and countries/regions to continue holding all dollar-denominated bonds, but instead switch to commodities and physical assets. We hope that investors can control risks ahead of time.

• In a volatile week, the US cannabis MSOS ETF gained 1.10%, while the global YOLO ETF climbed 3.92% on continued strength of select Canadian names.
• YTD, MSOS is +49.70% and YOLO is +39.47%.
• AYR Wellness (CSE: AYR, OTCQX: AYRWF) finished at +8.47% and had the strongest week among the larger operators. 

• The Water Tower Research Office Index posted the best relative performance of the week, up 1.6%, compared with the other indexes, which fell between 1% and 2.8%.
• Both the Residential Manufacturers (-4.4%) and Home Goods Retailers (-5.1%) had rough weeks on a relatively quiet news front.
• Bassett reported its 1QFY24 results, missing our revenue and EPS estimates.

• Stocks rebounded on Friday, recuperating from the Dow Jones Industrial Average’s worst session in over a year.
• Traders scaled back their expectations of Federal Reserve rate cuts after US employers added 303,000 jobs in March, signaling a robust labor market
• Yaskawa Electric anticipates record-high consolidated net profit of 54 billion yen (up 7% YoY) for the fiscal year ending February 2025.

• The obesity problem has escalated at an alarming rate in Asia. 
• Expect strong growth for GLP-1s over the next few years, however, companies that produce next-generation drugs will take the lead.
• The significant increase in newly approved drugs will result in margin pressure – pricing will be key.

• US stocks recovered on Friday after a blow-out US jobs report. However, US 10 year yields ended the week up 19bps at 4.4%
• Japanese stocks sank for a second week as tech stocks came under selling pressure
• The 10% move in Sumitomo Metal Mining on higher copper prices highlights strength in global economy and perhaps sign of renewed growth in China

• The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points:China PMI, South Korean exports, and inflation.
• Companies mentioned:Xiaomi Corp (1810 HK), Taiwan Semiconductor (TSMC) (2330 TT), NIO (9866 HK), SK Hynix (000660 KS)

• US large banks weekly data shows loan growth now turning to negative, not a positive outlook for bank earnings or core income
• C&I loan growth is more negative than other major segments, suggesting limited demand, but also risk-aversion by banks
• Even where Jumbo Time Deposits growth is now only 59% YoY there is still likely to be major pressure on banks’ funding costs

•  ADX Energy (ADX AU)C; target price of A$1.00 per share: Sample analysis at Welchau – Compositional analysis of a gas sample at Welchau shows 92 mole % methane, 4 mole % ethane with low CO2 and no H2S.
• Criterium Energy (CEQ CN)C; target price of C$0.30 per share: Growth within cashflow – The FY24 guidance reflects a self-funded development and debt repayment programme.
• While a reduced capital programme, we believe this is a prudent strategy with upside optionality should additional funds from the Bulu sale or higher oil prices materialize.

• Penang is experiencing a new boom in semiconductor chip manufacturing, attracting investment from international companies
• Malaysia has a 50-year history in the semiconductor supply chain, with a focus on the back end processes such as packaging, assembly, and testing
• Malaysia is capitalizing on the US-China chip war and emerging as an unexpected winner in the global supply chain, receiving $12.8 billion in foreign direct investment in 2023

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• U.S. stocks experienced significant volatility with the Dow Jones plunging 530.16 points, marking its worst session since March 2023.
• Foreign investment in Japanese stocks hit a 10-year peak in fiscal 2023, reaching 7.69 trillion yen, driven by the UK, South Korea, and China.
• Nihon M&A Center Holdings [2127] plans to invest in “Korea M&A Exchange” (KMX), aligning with succession needs in Japan and South Korea.

• A number of China’s conventional carmakers have launched or announced new hybrid models in an attempt to capitalize on the growing popularity of the cars as range anxiety persists among customers curious about going electric.
• State-owned automaker Dongfeng Motor Group Co. Ltd. on Saturday unveiled the Aeolus L7 SUV, which it touted as the first model built with its novel hybrid car technology that allows the vehicle to operate as either a plug-in hybrid or an extended-range hybrid.
• Plug-in hybrids use batteries to power an electric motor and fossil fuels to power an internal combustion engine. While on the road, they can use fuel, battery power or a mix of the two to run.

• China’s economic data is continuing to surprise on the upside.
• Investors are starting to take notice and good news is not being ignored – a sign of a change in sentiment.
• Economically sensitive and commodity-related sectors a good hunting ground for absolute returns

• U.S. stocks closed mixed Wednesday as investors pondered Fed Chair Jerome Powell’s comments alongside robust economic data, hinting at prolonged higher rates
• Taiwan experienced a significant earthquake originating off its eastern coast, prompting TSMC, the world’s top semiconductor company, to halt operations on some manufacturing equipment
• Itochu Corp (8001) unveils a robust business plan for fiscal year 2025, targeting increased dividends and share buybacks to raise its total payout ratio

• A major earthquake struck Taiwan on April 3, where 25-30% of the world’s semiconductor wafers are produced
• Most semiconductor fabs are far away from the earthquake’s epicenter
• Those companies that have issued statements indicate that damage was slight, but there is still likely to be a shortage, which should boost chip maker profitability through 2024

• NTES US/1024 HK: The NPPA has released the approval results for domestic online games in March.(+/+)
• BABA US/JD US/PDD US /1024 HK: Alibaba to start charging live-streaming commissions (+)
• 241 HK: Alibaba Health updates its guidance for fiscal year 2023-24 and fiscal year 2024-25, introducing Alimama advertising revenue, but it is still not cheap（/）

• 1810 HK/1211 HK: Xiaomi SU7 pre order conversion rate estimated to be about 20-30%, reopening the Founder’s Edition to increase the conversion rate（///）
• 1810 HK: Zeekr 001 exceeded 30,000 in the first month of its launch. Zeekr + SU7 may have the biggest impact on Tesla and BBA（/）
• 1810 HK/1211 HK/XPEV/ TSLA: Su7’s aggressive pricing impacts ICE vehicles, Tesla, Zeekr, while also stimulating overall auto sales (//-/-/-)

• The government of Colombia seeks to accelerate the country’s path toward net zero emissions, while investors question the implications for the country’s oil & gas industry.
• This report is the third in a three-part WTR Energy Focus series on Colombia. It follows Oil & Gas Operators Guiding for Bottom-Up Growth… and Striking a Balance Between Energy Security and Fiscal Stability.
• Colombia’s natural gas demand will increase due to an energy transition and upstream operators with gas exposure realizing strong gas prices in an undersupplied market (as shown on right).

• This is the first edition of a quarterly summary piece to highlight my ideas and best pieces quarterly.
• This is one of the 16th-best quarters in SOXX since 2002. While it’s a pretty solid showing at a 17% quarterly return, this doesn’t compare to the incredible returns in 2020 and 2023.
• Now, the misleading thing is that SMH, a broader ETF, is up 30%.

• Stocks closed lower for a second consecutive day as the Dow Jones Industrial Average fell 1% to settle at 39,170.24
• Workers at Japanese small and midsize manufacturers secured record wage hikes averaging 4.12% this year, influenced by wage increases exceeding 5% at larger firms
• Fast Retailing Co Ltd (9983) reports a 1.5% decline in UNIQLO same-store sales in Japan for March, attributed to cooler temperatures impacting spring clothing sales

• Our insight 2024 High Conviction: Junior Copper Miners garnered significant interest in late 2023, we hereby provide an update on our favorite junior copper names.
• Copper prices have started to to tick up (+5% YTD) on the back of gold making new all-time highs late in 1Q24, and more importantly squeezed global supply.
• Entree Resources (ETG CN) has performed strongest +22% while Arras Minerals (ARK V EQUITY) has been a laggard at -18% YTD.