In today’s briefing:
- Short Note: The Tide Has Turned for Hong Kong Real Estate
- Ohayo Japan | Rotation Out of Growth
- Japan Morning Connection: Further Sector Rotation on the Cards as Risk-Off Mood for Tech Continues
- # 50 India Insight: Vedanta Deleveraging Strategy, JIO Foreign Investment, Hero Motors Files IPO
Short Note: The Tide Has Turned for Hong Kong Real Estate
- HK Property stocks are up 4-5% today. We think the tide has turned for HK real estate. As discussed, we identify HK to benefit if Fed starts a rate-cut cycle
- Powell’s speech at Jackson Hole meeting confirmed the change of monetary policy and will start a rate cut cycle. Despite fundamental issues remain for HK, market is forward-looking
- A buy in HK RE names will be a good value trade for next 6-12 months and we discuss potential trade ideas
Ohayo Japan | Rotation Out of Growth
- The Dow Jones Industrial Average closed at a record high of 41,240 on Monday, rising 0.1%, while the S&P 500 and Nasdaq Composite fell 0.3% and 0.9%, respectively.
- Technology stocks lagged as Nvidia dropped 2% ahead of its earnings report, with Broadcom and Tesla also sliding
- Resonac Holdings plans to invest about 30 billion yen to boost production of advanced power semiconductors for EVs starting in 2027
Japan Morning Connection: Further Sector Rotation on the Cards as Risk-Off Mood for Tech Continues
- Tech weakness in Japan to continue, following the profit taking lead out of the US with NVDA numbers on Wednesday.
- Defence related may get a lift after yesterdays weakness, with Middle East tensions rising, Japan warding off a Chinese spy plane and ex-Defence Minister announcing candidacy for LDP leader.
- Typhoon Shanshan is expected in Kyushu. Resulting weakness on related names is usually short-lived and largely retail investor driven, making reverse positioning into the moves the more attractive tactic.
# 50 India Insight: Vedanta Deleveraging Strategy, JIO Foreign Investment, Hero Motors Files IPO
- Japanese Investors Begin Pulling Out from India Midcap Funds, Yet Overall Inflows Stay Positive
- Vedanta Prepares Rs 30,000-Crore War Chest for Deleveraging and Growth
- Jio Financial Services Gains Approval to Raise Foreign Investment Cap to 49%
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