Daily Brief Thematic (Sector/Industry): Ohayo Japan | Stocks Stumble Ahead of Jackson Hole and more

• The S&P 500 declined 0.89% on Thursday, closing at 5,570, as investors awaited Federal Reserve Chair Jerome Powell’s speech at Jackson Hole
• Japan’s machine tool orders rose 8% year-on-year in July, marking the third consecutive month of growth
• Nippon Steel and JFE Steel are investing $1.08 billion in Whitehaven’s Blackwater coal mine in Australia

• A significant ¥22 trillion gap exists between book and market values, pushing companies to sell non-core real estate for capital efficiency. 
• 50% of TSE Prime Market firms trade below a P/B ratio of 1, reflecting low market valuations and driving asset divestitures. 
• Mizuho Trust saw an 800% surge from 13 to 110 inquiries in 2023, as firms seek to improve their P/B ratios through asset sales.

• Technological advancements are leading to a tectonic shift in computing
• Companies are currently over investing in infrastructure build out for future potential
• There are concerns about the long-term monetization and financial implications of these investments

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• US profit-taking in tech/growth will set a muted tone to start as the market holds its breath for comments from BoJ Gov. Ueda who addresses parliament this morning.
• China chip imports at record highs may add to pressure for the US to broaden its export restrictions for specific technologies as well as  for legacy node equipment.
• Koizumi leading the polls will be positive for renewable energy names which remain highly oversold after the multi-year weakness in Japanese small caps.

• 1810 HK/981 HK/AAPL US: Xiaomi’s Africa smartphone sales outgrow market in 2Q24 (+/+/-)
• XPEV US:Xpeng Motors’ revenue in the second quarter was in line with our expectations, and its losses were greater than our expectations(/)
• 1211 HK/1810 HK/XPEV US/NIO US/LI US:In the 33rd week of 2024, the delivery of new energy vehicles by Xiaomi fluctuated, Leapmotor and Li were strong, and NIO remained weak  (/////////)

• 700 HK/BABA US:Taobao Deals App Now Supports WeChat Pay for All Users. (+)
• 700 HK: <Arena Breakout: Infinite> Developing AI Technology: Voice-Command Teammates (+)
• NTES US: <Where Winds Meet> Final Pre-Launch Test Scheduled for August 28th (+)