Daily Brief Thematic (Sector/Industry): Japan Weekly | Insane AI Demand and more

• U.S. stocks showed a “slightly bullish” trend this week, driven by stronger-than-expected September Retail Sales, which pushed the S&P 500 up 0.9%
• Japan’s stock market experienced a volatile week, with the Nikkei 225 Index declining 1.6% and the broader Topix Index down 0.6%
• ASML’s cautious guidance hit Japanese SPE Stocks, but AI-related chip demand remains “insane” according to TSMC

• Precious Metals and the associated equities have been a high-conviction investment idea for us in 2024
• Gold is up 39% YTD and a representative index of gold miners is up 32%
• Should we take the money and run? Is it over?

• The Global Emerging Markets Weekly summarises the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
• Macro data points: Chinese inflation, net exports, GDP growth, industrial production, and retail sales data.
• Companies mentioned:Taiwan Semiconductor (TSMC) (2330 TT), Alibaba Group Holding (9988 HK), Baidu (9888 HK)

• Australia has recommended against the approval of Eisai Alzheimer’s disease drug Leqembi. Daiichi Sankyo’s Enhertu received conditional approval in China for the treatment of non-small cell lung cancer.
• Nihon Kohden has revised its financial forecasts for H1FY25. Shanghai Junshi Biosciences’ toripalimab has been approved for marketing in India for treatment of recurrent or metastatic nasopharyngeal carcinoma.
• Akeso Biopharma raised ~$250M, for funding its R&D activities. Celltrion has filed phase 3 clinical trial application in Europe for Cosentyx biosimilar in patients with moderate to severe plaque psoriasis.

• Reportedly, Government of Pakistan is planning to enter into agreement with 5 power producers in Pakistan for premature termination of their Power Purchase Agreement (PPA). This includes 2 listed names, i.e. base power plant for Hub Power (HUBC), and Lalpir Power Limited (LPL), and 1 indirect listed name, Roush Power (through Altern Energy), and 2 unlisted players, Saba Power and Atlas Power.
• Based on the news reports, 4 of the above are set to sign agreement with the Governments, while 1 (HUBC) is expected to sign it soon.
• The objective behind early termination of these plants is to avoid any further capacity payments to the producers, thus taking one step ahead out of many to reduce power cost in the country. This step may result in benefit of Rs0.6/Kwh, as per news.

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