In today’s briefing:
- Ohayo Japan | Market Ignores Slump in Consumer Confidence
- Japan Morning Connection: Improved Sentiment in China Puts the Focus on Squeeze Targets
- China & HK Strategy: Time for The “Dogs” To Revenge?
- Sustainable Investing Surveyor – Focus on Alto Ingredients, Inc. (ALTO)
Ohayo Japan | Market Ignores Slump in Consumer Confidence
- The S&P 500 rose 0.25% to a record 5,733 on Tuesday, buoyed by a nearly 4% jump in Nvidia shares
- U.S. Consumer confidence dropped sharply in September to 98.7, down from 105.6 in August, marking the largest decline since August 2021
- Activist investor, City Index Elevens, has taken a 5.08% stake in Aichi Steel, a Toyota affiliate
Japan Morning Connection: Improved Sentiment in China Puts the Focus on Squeeze Targets
- China names will be in focus with yesterdays gains holding overnight in the US.
- Worth looking at Japanese names previously bucketed as China plays which could now be squeeze targets with large short interests.
- The list is long, but some names which could squeeze on the improved sentiment include Shiseido, Daikin, TOTO, Yamaha Corp and Nabtesco.
China & HK Strategy: Time for The “Dogs” To Revenge?
- While the worst-performing stocks in 2023 have gone down by an average of 17.6% YTD, their pick-up in the last month is significant at 19.9%.
- The cut in US interest rate and the Chinese government’s stimulus measures will benefit the HSI, providing room for shifting position from heavily overweighted names to underweighted.
- Li Ning (2331 HK), Meituan (3690 HK), Wuxi Biologics (2269 HK), and Zhongsheng Group (881 HK) are the key “dogs” in last year that are worth a look.
Sustainable Investing Surveyor – Focus on Alto Ingredients, Inc. (ALTO)
- The WTR Sustainable Index was up 2.2% W/W versus the S&P 500 Index (up 1.4%), the Russell 2000 Index (up 2.1%) and the Nasdaq Index (up 1.4%).
- Energy Technology (13.5% of the index) was up 0.7%, while Industrial Climate and Ag Technology (47.4% of the index) was up 2.2%, ClimateTech Mining was up 2.1%, and Advanced Transportation Solutions (20.0% of index) was up 3.6%.
- Top 10 Performers: REE, NGPHF, LICY, SUNW, MVST, FTCI, ENG, GCEH, ORGN, IPWR
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