Daily Brief Macro: EM Growth Funds Raise Out-Of-Benchmark Exposure to Japan and more

In today’s briefing:

EM Growth Funds Raise Out-Of-Benchmark Exposure to Japan
China Housing: Demand-Supply Fundamentals – Part #3: Solving The Construction Indicators Puzzle
TPW Advisory Friday Musings: Transition Time

EM Growth Funds Raise Out-Of-Benchmark Exposure to Japan

Active Emerging Market funds in the Aggressive Growth style group raise out-of-benchmark exposure in Japanese stocks to record levels.
Nearly a fifth of funds are now invested, with Unicharm Corp (8113 JP) and Hoya Corp (7741 JP) the key stock holdings.
Japan is the 9th largest country overweight among Aggressive Growth EM funds, underscoring the commitment of active managers in identifying Emerging Market opportunities beyond conventional indices.

It’s often not what it seems when it comes to reading China’s official data for new home sales, and the construction indicators for New Starts, Completions, and Under-Construction area
From a demand-supply perspective, the Under-Construction figures seem heavily over-estimated, given the way new starts are counted, industry practices, and ‘dead supply’; closer to 4bn rather than 7bn sqm
The gap between sales and completions has more to do with data collection and definitions than the actual ‘gap’ – a much smaller problem than publicized

Wednesday marked the first day of the US summer though here in NYC it sure doesn’t feel like it with temps running some 15 degrees below normal for this transitional time of year.
Some early mornings and late afternoons still feel like Spring, some lunch walks lead to a sense Summer is already upon us.
No surprise where this metaphor goes right? Straight to the markets which seem to be in transition time themselves… from bear to bull, from rate hike cycle to rate cut cycle, from recession fears… well, back to recession fears, from tech stocks rock to was that a pothole and on to the cyclical vs defensive debate.

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