Daily Brief Japan: Nidec Corp, Hoya Corp, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Nikkei 225 Sep Annual Review Predictions – 3 In, 3 Out
Nikkei 225 March 2023 Rebal On The Follow – Predictions (3 In, 3 Out) & Problems
Tighter ESG-Wash Monitoring Will Follow the New Securities Report Disclosure Rule in in 2 Years?

Nikkei 225 Sep Annual Review Predictions – 3 In, 3 Out

The Nikkei 225 Annual Review is in September based on end-July data. Jumping the gun, I propose 3 additions and 3 deletions with granular data and details offered per sector.
I see ¥600bn to buy and a funding trade of 99% of that. There are 15+ names with more than 1 day of ADV to sell (funding only).
The impact on Real World Float is non-negligible. One name in particular is deserving of attention.

Yesterday I published Nikkei 225 Sep Annual Review Predictions – 3 In, 3 Out. Assuming correct, and we move the last 6mos of data 6mos forward, March23 Rebal is below.
This too is 3 in, 3 out. But it is complicated. “Required” changes would move the sector balance further out of whack.
And while some of the trades are “interesting”, the rebal is smaller and the bigger question is “What comes after that?”

Only a while ago, there was debate in ESG Investing about “how effective ESG factors are in performance,” and rather skeptical viewpoint prevailed among investors. Where have these debates gone?
Since there is serious shortage of human resources of ESG analysts, the FSA is expected to take a certain amount of time to monitor the systems of investment management companies.
FSA will strengthen its monitoring ESG wash to ensure that there are no misstatements in the reports as listed companies will be required to include sustainability in their securities reports.

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