Weekly Thoughts

China’s rerating continues, pressuring global funds to raise weightingsAs we have noted we have little doubt that the speed of China’s stock rerating has sent tremors through halls of global asset allocators.…

Not long after the yen carry trade unwind, comes another macro-driven shock as Chinese government’s sudden change in urgency in reflating its economy, practically pledging that they will do everything it takes…

Stocks bounce on global risk-on mode while BOJ turns more dovishDollar/yen rate rebounded from its 140 support line last week despite the Fed’s 50bps rate cut which we thought was prudent given…

Japan stocks performance likely to continue to disappoint in the near termWith dollar/yen rate continuing to head lower as BOJ has finally begun correcting its big policy mistakes of the past two…

Besides less than a handful of Asian technology names which we continue to like, namely TSMC which has topped our buy list since May of last year, we have become increasingly concerned …

For Japan stock market participants, the big rally which have pushed key market indices close to their 1989 highs could not have provided a better start to 2024. Japan has become overseas…

Looking back at our last year’s predictions, the calls turned out to be a mixed bag. Although we correctly predicted that China will disappoint bullish market expectations at the time, our calls for…

The Federal Reserve’s surprise guidance for looser monetary policy sometime next year seemed partly intended for the US central bank to regain some control of the narrative as the market had already…

The yen’s most recent snap-back seem to have Japan equity analysts, especially those covering multinationals and exporters, hurrying back to their earnings models to adjust their estimated forex benefits in their forecasts…

Despite most recent headwinds from stronger yen on shares of exporters, the Topix has generally held on to its November gains, closely following the US market’s broader melt-up on a sudden shift…