In today’s briefing:
- HK RE Series (4) With Macro Backdrop in US & China, HK Is Positioned for a Strong Rerating, Buy Now!
- Will China’s Stock Market Rally Lead to a Shift in FPI Flows from India?
- Ohayo Japan | Slight Gains Despite Powell Comments
- Japan Morning Connection: Selective Rebound Expected After Yesterday’s Panic
- # 63 India Insight: L&T to Raise INR 400 Billion, NLC Targets 1 MTPA Capacity, Tata Motors Start JLR
- Furniture/Furnishings Weekly – F/F Stocks Poised for a Breakout (?)
- Japan Healthcare: Strong Yen to Negatively Impact Financial Performance; Volatility to Continue
- Higher Exchanges Recap – Exploiting the Low-Cost Advantage with Grown Rogue CEO Obie Strickler
- Biopharma Week in Review – September 30, 2024
HK RE Series (4) With Macro Backdrop in US & China, HK Is Positioned for a Strong Rerating, Buy Now!
- The wait is finally over. The Fed delivered a 50bps rate cut in September meeting, kick- starting a new rate cut cycle
- The rate cut is an absolute game changer for Hong Kong real estate. Physical market will recover with lower mortgage rate and companies will enjoy lower borrow rate
- With the macro backdrop in US and China, Hong Kong is well positioned for as strong re-rating with mega catalysts ahead – Buy HK real estate, especially SHKP and NWD
Will China’s Stock Market Rally Lead to a Shift in FPI Flows from India?
- China’s SSE Composite Index surged 18% due to government stimulus measures, focusing on real estate and financial sector revival.
- Stimulus boosts global commodity demand, while India’s domestic market remains resilient despite minor FPI rebalancing towards China.
- China’s recovery doesn’t significantly impact India’s growth, driven by strong domestic inflows and stable market conditions.
Ohayo Japan | Slight Gains Despite Powell Comments
- U.S. stocks closed September and the third quarter with fresh records despite Federal Reserve Chair Jerome Powell’s signaling no rush for further rate cuts
- Shigeru Ishiba, newly elected president of Japan’s ruling LDP, announced plans to dissolve the lower house and hold a general election on October 27.
- SoftBank’s Vision Fund will reportedly invest $500 million in OpenAI’s $6.5 billion funding round, valuing the AI startup at $150 billion
Japan Morning Connection: Selective Rebound Expected After Yesterday’s Panic
- Plenty of Ishiba trades to pickup this morning after yesterday’s panic.
- Defence related saw some initial profit taking after pricing in some gains, but KHI and NEC remain attractive on the long side.
- Selective Inbound tourism, domestic revitalization, and China plays should snap back fairly quickly with Ishiba unlikely to upset voters ahead of elections.
# 63 India Insight: L&T to Raise INR 400 Billion, NLC Targets 1 MTPA Capacity, Tata Motors Start JLR
- Larsen & Toubro (L&T) plans to generate INR 40,000 crore in pre-sales revenue through aggressive land acquisition and portfolio expansion.
- NLC India aims to reach a mining capacity of 1 MTPA for critical minerals by FY30
- Reliance’s Viacom 18-Disney Merger Approved, Creating India’s Largest Media Empire
Furniture/Furnishings Weekly – F/F Stocks Poised for a Breakout (?)
- Furniture and Furnishing stocks performed well against the major market indices, where the relative calm at the level of the overall indices belied the leadership churn and rotation back into tech following the recent Fed rate cuts (1).
- The Water Tower Research Commercial/Contract Furniture index (+0.5%), Residential Manufacturers & Suppliers (+4.5%), and Home Goods Retailers index (+1.0%) we up all up more than the DJ30 and SP50 (both +0.3%) while the Mass Retailers index (-1.5%) and R2K (-0.2%) were both down.
- In a market where technology stocks are again leading and big caps are outperforming smaller caps, the relative outperformance of the Water Tower Research indices is notable.
Japan Healthcare: Strong Yen to Negatively Impact Financial Performance; Volatility to Continue
- Since the BoJ interest rate hike in July, the Yen appreciated ~5% to ¥142.74. Considerable amount of appreciation may be dilutive on the overall performance of export-oriented industry.
- Top healthcare players have assumed a higher exchange rate (than the current prevailing rate) for their respective full-year FY25 guidance.
- With benefit of favorable foreign exchange gradually fading and potentially diminishing guidance, investors need to be selective in picking healthcare bets in Japan.
Higher Exchanges Recap – Exploiting the Low-Cost Advantage with Grown Rogue CEO Obie Strickler
- Higher Exchanges is a weekly cannabis-investing conversation hosted by WTR’s Head of Cannabis Jesse Redmond and Morgan Paxhia, co-founder of Poseidon.
- Those interested can listen to the show on Apple Podcasts, Spotify, or X Spaces.
- This week’s show began with a discussion about Senator Ron Wyden’s Cannabinoid Safety and Regulation Act, which proposes more regulation for the hemp industry.
Biopharma Week in Review – September 30, 2024
- We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
- Last week, BMY received landmark antipsychotic approval, while BHVN finally scored a win in rare genetic SCA.
- AMGN had approvable data in atopic dermatitis and gMG, but not enough to dethrone REGN and ARGX.
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