Daily Brief Thematic (Sector/Industry): Ohayo Japan | Recession Fears and more

• Stocks tumbled on Thursday, with the Dow Jones dropping 494 points amid recession fears
• Japan’s manufacturing PMI fell to 49.1 in July, indicating contraction. New orders declined due to weak domestic and international demand
• Hitachi’s Q1 net profit surged 2.5-fold to 175 billion yen, driven by strong AI-related demand in IT services and power distribution

• Big tech reversal after yesterdays gains and a horrible earnings print for INTC sends it -20% in AH trading setting a very bleak tone for JP tech
• AMZN miss after-mkt on its e-commerce seller services and advertising will weigh on likes of 4755 Rakuten and 4689 LY Corp.
• Flight to perceived safety in names such as P&G, CL and KMB may provide a bid for related plays in JP such as 4452 Kao, 4912 Lion, and 8113 Unicharm.

• Many Chinese solar manufacturers slowed or halted production altogether in the first half of this year, as they struggled to survive amid overcapacity and an ensuing price war, prompting an industry group to call for faster consolidation among the firms.
• “It’s rare for the whole industry to lose money,” Wang Bohua, honorary chairman of the China Photovoltaic Industry Association (CPIA), said at a solar conference in the eastern province of Zhejiang on Thursday.
• “Among the companies in the main industrial chain that have released their half-year forecasts, most are in a state of loss,” Wang said.

• JSW Cement bids for CK Birla’s stake in Orient Cement, reflecting ongoing industry consolidation.
• Dixon plans new Chennai plant for laptop production, expanding IT manufacturing capabilities.
• IndiaMART shares fall after weak subscriber growth, despite strong profit and revenue increase.

• High level macro themes include challenges of semiconductors in China and broader consumer trends
• Overall sentiment in China remains relatively positive despite concerns in the semiconductor industry
• Huawei’s comeback and success in the semiconductor market is contributing to increasing optimism in the industry, especially in the electronics sector

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