What Worked Japan - 03 Mar 2017 - Value did not work for the first time since last December

What Worked

Value, particularly PBR, was hurt this week. This is really the first week since last December that low PBR names have not done well. Low PBR names that were down included Ogaki Kyoritsu Bank (8361) down 10%, Showa Denko (4004) down 8% and Inpex (1605) down 5%.

High Beta names were also down this week. As with Value, this is the first week this year that high Beta names were hurt. Toshiba (6502) is down 5%, Taiyo Yuden (6976) is down 5% and Ibiden (4062) is also down 5%. With Value and Beta down, there was a slight move into high ROIC names. Morinaga (2201) is up 7%, Unipres Corp (5949) is up 6% and Nippon Paint Holdings (4612) is up 6%.

Who Moved

Only 25 names moved on volume this week. On the positive side, Mitsui Mining and Smelting (5706) is up 11%, Morinaga (2201) is up 7% and Morinaga Milk Industry is up 6%. On the other side, Ogaki Kyoritsu Bank (8361) is down 10%, Pola Orbis Holdings (4927) is down 7% and Park24 (4666) is down 6%.

Summary

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What Worked Asia - 24 Feb 2017 - Low PBR and short-term momentum names did well this week in Asia

What Worked

Value and high Beta names dominated in China this week. Both PBR and Beta were the strongest factors in China over the last month. Low PBR names that did well were Greenland Hong Kong up 12% and Sunac China Holdings up 9%. As with China, low PBR names continue to do well in Hong Kong. In Hong Kong, PBR is the strongest factor over the last 3 months. HNA Holdings Group is up 22% and Esprit Holding is up 19%.

High dividend yield names did well in Singapore this week. Sembcorp Marine is up 12%. In South Korea, Value and high Beta names were hurt this week. ViroMed is down 8% and LG International is down 6%. Large-cap names dominated in Indonesia. Bank Rakya Indonesia Agroniaga is up 18% and Indo Tambangraya Megah is up 13%. In the Philippines, positive momentum names did very well this week. Premium Leisure is up 11% and Belle Corp is up 5%.

Who Moved

291 names moved on volume this week. A good number of the names came in the Financial and Electronic Technology sector.  At the country level, HK/China made up one third of the volume spikes. On the positive side, Jindal Steel and Power is up 26%, HNA Holding Group is up 22% and AEON (Malaysia) is up 24%. On the other side, Sun Art Retail is down 19%, GeniuS Electronic Optical is down 13% and Season Pacific Holdings is down 13%.

Summary

Asia ex Japan Factor Performance

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What Worked Japan - 24 Feb 2017 - Most factors insignificant, short-term momentum names hurt

What Worked

Interesting week. With TOPIX basically flat, none of the Value or Growth factors stood out this week. There was a slight selloff in high ROIC names. Nissan Chemical Industries (4021) was down 7%, Tokuyama Corp (4043) was down 6% and Taiheiyo Cement Corp (5233) was down 6%.

Momentum, particularly short-term momentum, names also did not do well this week. Daifuku (6383) was down 4%, Mitsui Mining and Smelting (5706) was down 5% and Daido Steel (5471) was down 4%. All other factors were insignificant this week.

Who Moved

42 names moved on volume this week. The volume spikes look to be spread across all sectors. On the positive side, Toyo Tire & Rubber is up 25%, Mitsui Mining and Smelting is up 19% and MinebeaMitsumi is up 19%. On the other side, Iida Group (3291)is down 11%, Nikon is down 10% and Asics Corp (7936) is down 9%.

Summary

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What Worked Asia - 17 Feb 2017 - More than 400 names moved on Volume in Asia this week

What Worked Large-cap names and Value did well in China this week as low Debt to Equity names were hurt. Hisense Kelon Electrical Holdings is up 17% and Beijing Enterprises Clean Energy is up 15%. Nothing stood out in Hong Kong.  Names down over the last month bounced up in South Korea. EO Technics is up 12% and Hankook Tire is up 8%. In Taiwan there was a slight selloff in Size and Quality names. Win Semiconductors is up 24% and General Interface Solution is up 13%.

In India there was a slight move into Size and away from high Beta names. Tata Motors is down 11% and Advanced Enzyme Technologies is down 12%. Growth names were hurt in Singapore this week. Hutchison Port Holdings is down 13% and Japfa is down 4% this week. Low PBR and Momentum names did well in the Philippines this week.

Who Moved – A very high 404 names moved on volume this week. All the volume spikes were spread across the region. However a quarter of the volume spikes came in the Financial Sector. On the positive side, PT Medco Energi Internassional is up 64%, Goldin Financial Holdings is up 50% and Formosa Sumco Technology is up 40%. On the other side, Luen Wong Group is down 28%, PChome Online is down 15% and Season Pacific Holding is down 18%.

Summary

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What Worked Japan - 17 Feb 2017 - Low PE did well this week, Large-cap continues to underperform

What Worked – After not really working since the end of last November, low PE name did well this week. Toyo Tire & Rubber (5105) is up 25%, MinebeaMitsumi (6479) is up 19% and DMG MORI (6141) is up 14%. High Dividend Yield names also did well this week. DIC Corp (4631) is up 7%, NSK (6471) is up 6% and Toda (1860) is up 6%. Large-cap names continued to underperform and have been beaten up since last June.

There have really only been three weeks since last June when large-cap name have outperformed. Large-cap names that were down this week were Toshiba (6502) down 23%, Iida Group (3291) down 11% and Nikon (7731) down 10%. There was also a slight move into high Beta names. High Beta names have quietly been outperforming since the beginning of the year. Mitsui Mining and Smelting (5706) is up 19% and Tokio Marine Holdings (8766) is up 5%.

Who Moved – 42 names moved on volume this week. The volume spikes look to be spread across all sectors. On the positive side, Toyo Tire & Rubber is up 25%, Mitsui Mining and Smelting is up 19% and MinebeaMitsumi is up 19%. On the other side, Iida Group (3291)is down 11%, Nikon is down 10% and Asics Corp (7936) is down 9%.

Summary

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What Worked Asia - 10 Feb 2017 - Value (PBR) and Beta did well in Asia ex this week

What Worked –Value, particularly low PE, and Beta dominated in China this week.  Guangzhou Automobile is up 14% and Greenland Hong Kong Holding is up 13%. To a slight lesser degree PE and Beta also were strong in Hong Kong. NewOcean Energy Holding is up 43% and Country Garden Holdings is up 20%. In South Korea, PBR continued to dominated. PBR is clearly the strongest factor in South Korea over the last month. SK Networks is up 16% and LS Corp is up 13% this week.

Low PE names did well in Singapore. Oxley Holding is up 18% and Yangzjiang Shipbuilding is up 7%. Low Debt to Equity names did not do well this week in Singapore. Beta and low PBR names did very well in Malaysia. DRB-Hicom is up 6% and UEM Sunrise is up 6%. Large-cap names did well in Taiwan after a good selloff the previous week. In India nothing really stood out this week.

Who Moved – 305 names moving on volume this week. A good number of the volume spikes came in Taiwan and India. Almost half of the volume spikes came in the Finance and Electronic Technology sectors. On the positive side, PT Bank Rakyat Indonesia Agroniaga is up 55%, NewOcean Energy is up 43% and TPK Holding is up 38%. On the other side, Korea Zinc is down 15%, Korea Aerospace Industries is down 11% and SK Materials is down 9%.

Summary

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What Worked Japan - 10 Feb 2017 - Beta and Price Momentum continue to drive the market

What Worked – High Beta and short-term (3-month) momentum names continued to do well this week. Over the last month, these two factors have driven the market. High Beta names that outperformed this week were Ibiden (4062) up 20%, Asahi Glass (5201) up 10% and Taiyo Yuden (6976) up 9%. Momentum names that did well this week were Disco (6146) up 19%, Yahoo Japan (4689) up 17% and Nippon Electric Glass (5214) up 12%.

Low PBR names also did well this week. Low PBR name have not done this well since the end of November last year. Other Value factors were pretty much insignificant this week. Low PBR names that outperformed were Kobe Steel (5406) up 9% and Sankyo (6417) up 7%. Growth continued to not work. Growth factors have consistently not done well since the middle of December last year. Yamaha (7951) is down 12% and Teijin Limited (3401) is down 8%. ROE / ROIC names also continue to not do well this year.

Who Moved – 42 names moved on volume this week. On the positive side, Ibiden Co (4062) is up 20%, Disco (6146) is up 19% and Yahoo Japan (4689) is up 17%. On the other side, Yamaho (7951) is down 12%, Teijin Limited (3401) is down 8% and Kaneka Corp (4118) is down 7%.

Summary

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What Worked Asia - 03 Feb 2017 - Large cap names were hurt across the region this week

What Worked – With Chinese New Year this week, not a lot stood out in China / Hong Kong. In South Korea, there was a good sell-off in high Beta names and a slight move away low PE names. High Beta names that were hurt were Jeil Pharma is down 19% and AmorePacific Group is down 10%. Large-cap names took a big hit in Taiwan this week. Eclat Textile is down 11% and POYA International is down 6%.

To a lesser degree large-cap names also did not do well in Singapore. Frasers Centrepoint is down 4% and Ascott Residence Trust is down 4%. In India, low PBR and high Beta names did well this week. The low PBR name outperformance looks to be concentrated in the Financial sector. Vijaya Bank is up 31% and Bank of Maharashtra is up 16%. Large-cap names were also hurt in the Philippines this week. GT Capital Holdings is down 6% and Bloomberry Resorts is down 5%.

Who Moved – 78 names moved on volume this week. More than half of the volume spikes came in India this week. On the positive side, China Oriental Group is up 49%, Idea Cellular Limited is up 42% and C.banner International Holdings is up 21%. On the other side, Jeil Pharma is down 19%, Bharti Infratel is down 16% and Hyundai Wia Corp is down 11%.

Summary

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What Worked Japan - 03 Feb 2017 - Slight move away from high Beta names and into Quality

What Worked – Slight sell-off in high Beta names and names with a high % of Institutional Investors this week. Both factors turned positive this week after three weeks of underperformance. High Beta names that did not do well were Nippon Steel Glass (5202) down 15%, Konica Minolta (4902) down 12% and Mitsubishi Heavy Industries (7011) down 11%. Names with a high % of Institutional Investors that went down were Hokuriku Electric (9505) down 11%, Tokyo Ohka Kogyo (4186) down 11% and Fuji Heavy (7270) down 10%.

Low Debt to Equity names did well this week. Looking back, low Debt to Equity name have not done well since the middle of last December. This week Canon Marketing Japan (8060) is up 13%, Chugai Pharma (4519) is up 11% and Itochu Techno-Solutions (4739) is up 8%. There was also a slight selloff in low PE name this week.

Who Moved – Despite Chinese New Year this week 32 names moved on volume. On the positive side, MonotaRO Co (3064) is up 25%, Yakult Honsha (2267) is up 15% and Start Today (3092) is up 14%. On the other side, Kakaku.com (2371) is down 22%, NEC (6701) is down 17% and Capcom (9697) is down 13%. All moved on strong volume.

Summary

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What Worked Asia - 27 Jan 2017 - Large cap and high Beta the only factors to stand out this week

What Worked – With the Chinese New Year starting up, none of the Value or Growth factors worked in China / HK. However in both regions, there was a slight move into high Beta names. In Hong Kong, Ground International Development was up 18% and MMG was up 17%. In South Korea none of the Value or Quality factors stood out as well this week. Value, particularly PE, worked in Taiwan. Yageo Corp was up 15% and Elite Material was up 10%.

In Singapore, large-cap names did well this week. Large cap names that outperformed were Dairy Farm International up 11% and Japfa up 9%. High Beta name did very well in India this week. Adani Enterprises was up 17% and Bharat Financial Inclusion was up 12%. In Malaysia, Value and high Beta names did well at the expense of Growth names. UMW Holdings was up 13% and Eco World Development was up 10%.

Who Moved – 122 names moved on volume this week. The volume spikes look to be evenly distributed across Sectors and Regions. On the positive side, United Co RUSAL was up 31%, Trent Limited was up 18% and Aluminum Corporation of China Limited was up 18%. On the other side, Cosmo Lady (China) Holdings was down 16%, Dong-A-Socio Holdings was down 13% and TPI Polene Public was down  12%.

Summary

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