iShares MSCI South Korea ETF
Micron Banks on 3D XPoint to Boost Its Future Growth
Micron Technology (MU) forecasts that 16% of the mainstream server market would be equipped with 3D XPoint by 2020.
Must-know: Is Japan’s fixed investment waking from a deep sleep?
Fixed investment in Japan The below graph reflects the flat lining of Japan’s fixed investment environment. As the Japanese yen had appreciated from 140 to the US dollar to 75 to the US dollar from 1998 to 2011, global fixed investment capital flocked to China, leaving Japan in the dust. However, as the Japanese yen […]
Apple Watch Sales May Fall: Can It Remain a Dominant Player?
According to KGI, Apple Watch (AAPL) sales will fall more than 25% in 2016. KGI forecasts sales of 7.5 million units in 2016 compared to estimated sales of 10.6 million units in 2015.
South Korea’s Economic Growth amid Geopolitical Tensions
South Korean economy The South Korean (EWY) economy is currently affected by security threats from North Korea and several chaebols, or family-controlled companies. Samsung Electronics (SSNLF) (HYMLF), a chaebol, has been involved in a corruption scandal, like companies in many other emerging markets. However, on a positive note, most macroeconomic factors look promising thanks to new […]
Here’s What Triggered China’s Price Probe into Micron and Others
Over the last two years, DRAM prices have more than doubled due to growing demand for high-performance devices.
What Were EA’s Important Gaming Metrics in Fiscal 1Q17?
The GAAP digital revenues for Electronic Arts (EA) in fiscal 1Q17 rose by 11% year-over-year to $689 million.
How the US Dollar’s Rise Could Impact Oracle’s Growth in 2017
The strengthening US dollar (UUP) has been pressuring the entire technology sector, and growth in Oracle’s (ORCL) top line is vulnerable to fluctuations in the dollar.
Lower Demand for Steel Products: Rig Count Hits 12-Year Low
The OCTG segment has been hit hard by lower demand and higher inventory. This would put pressure on U.S. Steel (X) and Nucor’s (NUE) tubular operations.
Will “Abenomics” bring real growth to Japan’s economy?
Japan’s economy versus the U.S. economy The below graph reflects trends in Japan’s gross domestic product (GDP) measured in U.S. dollars as of 2005 and 2013. Japan’s Gross Domestic Product (GDP) in 2012 was approximately $6 trillion USD, versus the U.S. GDP of approximately $16 trillion USD (so Japan’s economy is approximately 38% the size […]
Dynamic Random-Access Memory Spot Prices Fall
Spot prices of 2GB (gigabyte) DDR3 (double data rate 3) DRAM fell 2.4% from $1.01 on March 4, 2016 to $0.99 on March 16, 2016.
Hewlett-Packard Leads Market in Mobile Workstations
At the end of 4Q15, Hewlett-Packard maintained the top position in mobile workstations with a share of 42% and held first place in the commercial segment.
Taiwan’s Economy Expands, Russia Keeps Rates Unchanged
Taiwan’s economy came out of the recessionary phase. The GDP for 2Q16 grew by 0.69%—compared to a contraction of 0.68% in the previous quarter.
Qualcomm to Pay $200 Million Fine to Korea after Ten-Year Appeal
Qualcomm’s (QCOM) business practices have come under regulatory scrutiny in various countries including China, South Korea (EWY), Europe, and the United States.
Japanese Equities Rose from a Five-Month Low
South Korea’s KOSPI gained 0.1% on June 5 after ending almost flat the previous day. EWY rose 0.71% on June 4.
Why the South Korean Economy Expanded More Slowly in 2Q17
Slower growth in exports, manufacturing, and investments impacted economic activity in South Korea (EWY) in 2Q17.
Why we could see a new trend in Japan’s exports and imports
Japan’s import and export dynamics The below graph provides a clearer picture of the import and export dynamics of the Japanese economy. By using 2005 as a base year and adjusting for inflation or deflation, the graph shows how exports and imports have changed on a “real” basis, as opposed to a “nominal” basis. Viewing […]
Hang Seng Falls 2.4%, KOSPI over 3%, NIKKEI ~1%
Hong Kong’s Hang Seng Index, which generally follows the mainland’s lead, closed 2.39% lower at 28,311,07 on May 9.
What’s behind Malaysia’s Large Trade Surplus in June 2017?
Malaysia’s trade surplus jumped to 9.9 billion Malaysian ringgit (MYR) (about $2.3 billion as of August 11, 2017) in June 2017—an 80% rise YoY.
Why emerging markets offer far less “fiscal baggage”
Finally, the majority of the emerging market countries have much less “fiscal baggage” than their developed market counterparts.
Analysis: Why China’s export growth rates are slowing
China’s export growth declines The below graph reflects an apparent decline in the rate at which Chinese exports and imports have been growing. The red line reflects the rate at which exports exceed imports (trade surplus). Though growth rates in trade declined in the wake of the year 2000’s dot com bubble and the 9/11 […]
Are we seeing the end of Japan’s 30-year investment collapse?
This series explains why Japan’s investment decline happened and what might happen in the future under “Abenomics.”
Does “Abenomics” mean a new era of yen depreciation?
A change in yen appreciation? The below graph reflects a potential big change in Japan post-2012—has yen appreciation turned the corner as a result of post-2012 “Abenomics“? In the mid 1970’s, the U.S. dollar bought 300 yen, and by the mid-1980’s, the U.S. dollar bought 250 yen. By the end of the 1980s, the dollar […]
Is Japan’s investment turning the corner, or beyond help?
Japan’s fixed capital formation The below graph reflects the ongoing decline in fixed capital formation in Japan. Since Japan’s bubble economy burst in 1990, investments have been in a long-term phase of winding down. However, there has been a slight, though potentially ominous bounce recently. This article examines the trend in capital formation in Japan […]
When Will Hewlett-Packard’s Supplies Revenue Stabilize?
Hewlett-Packard’s (HPQ) revenue from its Printing segment fell 16% YoY (year-over-year) to $4.6 billion in fiscal 2Q16.
South Korean Stock Market Surges despite Geopolitical Tensions
South Korea’s (EWY) stock market soared to a new high recently, posting large gains across the Asia-Pacific region (VPL)(EPP). In this series, we’ll discuss what we can expect from South Korea for the rest of the year.
China tightens monetary policy: Will this be a Japan 1990 redux?
Interbank lending rates The below graph reflects the effects of the China Central Bank’s monetary tightening policies on interbank lending rates. The interbank seven-day lending rate spiked in June. Rates on government bonds have also risen, with the three-month yield on Chinese bills rising from 2.65% to 3.50%, and the ten-year bond yield rising from […]
What Lam Research’s Fiscal 3Q18 Earnings Say about Memory Market
Lam Research (LRCX) was among the first semiconductor companies to release its fiscal 3Q18 earnings for the quarter that ended on March 25.
China and South Korea Are Important Semiconductor Markets
The semiconductor industry has been at the center of the US-China (FXI) trade war as the two countries together account for the majority of worldwide semiconductor sales.
An Instructive Rundown of Micron’s Business Strategies
Two business strategies that Micron can use to beat competition include innovating processes that reduce costs and developing next-generation products.
Apple’s Older iPhone Models in Patent Battles
A few iPhone models face the risk of an import ban under Apple’s ongoing patent infringement lawsuit with Qualcomm and South Korea.
Western Digital Remains Optimistic about NAND
At the end of 3Q17, Statista estimated Western Digital (WDC) to have a share of 17.5% in the NAND (negative AND) Flash memory market.
Japanese wage growth: Off to the races?
What can the policies of Japan’s new Prime Minister provide in order to convince consumers to spend more and grow the overall economy? Prime Minister Abe has some fairly radical ideas.
Why “Abenomics” deserves more (consumer) credit
Japan’s consumer credit The below graph reflects modest growth in consumer credit in Japan. Over the past two years, consumer credit balances have grown about 11.0%. That isn’t a bad growth rate for a country whose real GDP (gross domestic product) output rate is still stuck at 2005 levels. Given that Japan’s GDP is roughly […]
Some Emerging Markets Can Likely Handle Soft Growth in China
In 2013, when the Fed announced that it would gradually end its QE (quantitative easing) program, many emerging markets (ABE)(FEO) saw huge outflows of funds.
KOSPI, ASX 200, and NZ 50 Gain, Singapore Index Is in the Red
South Korea’s KOSPI remained in the green on May 15. The index gained 0.53% on the day to end at 2,092.78.
A Look at Apple’s and Qualcomm’s Argument over Licensing
Apple has acknowledged that Qualcomm should be paid for its SEP (standard essential patent), but it argues that the latter is charging an unreasonably high price for the license.
Why Japanese ETFs outperform Chinese and Korean ETFs on “Abenomics”
Thanks to “Abenomics” and a weaker yen, Japanese equities have risen and have also outperformed both U.S. and E.U. equities and avoided the fate of Chinese, Korean, and emerging market shares.
Why we’re seeing a brand new housing bubble—Japan style
Residential investments in Japan The below graph reflects the ongoing decline in the rate at which residential investments are being made in Japan. As with other forms of fixed investment noted earlier in this series, Japan has seen a long-term decline in the housing market since the peak of the economic bubble, which was accompanied […]
China’s Great Wall of worry: The top ten causes for concern
The strength of Japanese equities The below graph reflects the strong performance of Japanese equities over Chinese and Korean equities since the election of Japan’s new Prime Minister, Shinzo Abe, in November last year. Hopes of ending deflation in Japan have led to a strong performance in Japanese markets, while Japan’s neighbors, China and Korea, […]
The Dynamics of May Steel Import Data
In May, US steel imports from South Korea and Russia fell 39% and 65%, respectively, in May. Steel imports from Japan and Brazil increased 20% and 11%, respectively.
Must-know: Will deflation end China’s investment boom?
The importance of capital formation The below graph reflects the historical dynamics of capital formation—the percentage amount of gross domestic product, or GDP, at which capital is invested—in the United States, Japan, and China. As the graph reflects, China exhibits a tremendous level of investment as a percentage of GDP relative to the more mature […]
Which ETFs Give You Exposure to South Korea?
There are a plethora of options for investing in South Korea equities via ETFs.
KOSPI Trails as the ASX 200 Posts Gains
KOSPI, the benchmark index in South Korea, fell 1.2% on May 16 to end up at 2,067.69.
Taiwan’s Economy Expands, Bank Indonesia Keeps Rates Unchanged
Taiwan’s economy rose by 0.7% on an annual basis in 2Q16—compared to a contraction of 0.29% in the previous quarter and slightly above estimated forecasts.
Must-know: China’s equity market implications
Major equity indices The below graph reflects the relative performance of major equity indices since the year 2000. The economic growth histories of China and Korea have contributed to superior performance over the US and Japanese equity markets over this timeframe. However, the below graph reflects how sensitive Chinese and Korean markets are to US […]
The Role of the US Dollar in Oracle’s Performance
Oracle, like its peers IBM (IBM) and Microsoft (MSFT), generates a significant portion of its revenues from outside the United States.
Xilinx’s Stock Jumps 18% as 5G Drives Earnings in Q3
Today, Xilinx (XLNX) stock is beating the charts with an increase of over 18%, and it’s still growing as its third quarter of fiscal 2019 earnings and guidance beat analysts estimate by a huge margin.
Should Brexit Encourage You to Consider Asia-Pacific Funds?
Both passively managed and actively managed funds (MDPCX) (VPACX) have found the year challenging so far.
When Will Hewlett-Packard’s Supplies Revenues Stabilize?
Hewlett-Packard expects the trajectory of revenues from the Supplies subsegment to stabilize by 2017. The average selling price rose quarter-over-quarter on a constant currency basis.
Chinese exports will face more competition from Japan and Korea
Chinese yuan appreciation The Chinese yuan has appreciated approximately 3% per year since the launch of exchange rate reform in 2005, appreciating from 8.25 to 6.15 versus the U.S. dollar. The Chinese Central Bank “pegs” its exchange rate to the U.S. dollar—though it has allowed its currency to appreciate against the U.S. dollar more aggressively […]
Slow growth in United States and European Union cool China export
GDP in the United States and European Union The below graph reflects ongoing trends in the gross domestic product (GDP) growth rates in the United States and European Union, major destinations of Chinese exports. With slow economic growth in the United States, and the EU gross domestic product finally hitting positive territory (+ 0.3%) after […]
Will China’s large-cap ETF, iShares’ FXI, stop underperforming?
For Baidu, Apple, and Google China, the improvement in the domestic consumption area has been encouraging, though construction and manufacturing still aren’t firing on all eight cylinders.
India, South Korea to Foster Bilateral Trade, Singapore Trade Surplus Up
In order to strengthen bilateral ties between India and South Korea, there was a review meeting to discuss the India–South Korea free trade agreement, also known as the Comprehensive Economic Partnership Agreement.
Will Micron and Samsung Have a Better 2016?
Heavyweights in the memory space such as Micron (MU), Samsung (SSNLF), and SK Hynix (HXSCF) may see an improvement in DRAM (dynamic random access memory) prices.
How US Dollar Affected Oracle’s Fiscal 2Q18 Earnings
North America and Latin America continued to be the largest market for Oracle (ORCL). The Americas region accounted for 56% of the company’s total revenues in fiscal 2Q18.
South Korea Records Trade Surplus amid Geopolitical Uncertainty
Reliance on external sector The South Korean (EWY) economy is heavily reliant on the external sector. In 2015, it was the fifth-largest export economy (DBKO) in the world, according to the ECI (economic complexity index). China (FXI) is its largest trading partner, as the countries share a sea border. In April 2017, South Korea recorded a larger trade […]
Rising Unemployment Continues to Plague South Korea in June 2017
South Korea’s (EWY) unemployment rate rose to 3.8% in June 2017 compared to a four-month low of 3.6% in the previous month.
Why Did Semtech’s Fiscal 2016 Revenue Fall?
In fiscal 2016, Semtech’s revenue fell ~12%, driven by falling demand for long-haul optical communications and reduced demand from Korean smartphone makers.
Analysis: Why China’s real estate construction is declining
Fixed asset investment in China The below graph reflects the significant decline in fixed asset investment as a percentage of GDP as well as the significant decline in the growth rate of real estate–related construction and investment. As noted in the prior article, since 1996, overall construction in China has seen five boom and decline […]
Should you worry about the growing debt in emerging markets?
Overall, emerging markets have debt levels relative to both gross domestic product and income that are still considerably lower than those of developed markets.
Japan’s fixed asset investment and corporate profits rebound
Like the USA, Japan is once again seeing record corporate profit levels. Plus, fixed asset investment reflects a very large recovery since the new Prime Minister was elected at the end of 2012.
Emerging markets are better positioned for the end of cheap money
Most major emerging economies are engaging in various forms of multi-year reform programs in hopes of making their growth less volatile and their financial systems more stable.
The Japanese auto exports reach a 3 trillion yen record high!
This article considers the inter-temporal cost/benefit of importing oil with a weakening currency versus exporting merchandise such as vehicles for Japan.
Why liquidity, credit, and low interest support Japanese equities
The Nikkei index stands at approximately 15,000—roughly 6.0% off its December 31, 2013, close, though still below its pre-2008 crisis peak of closer to 18,000.
Japan’s GDP back to peak levels: Auto sales and Toyota benefit
This article considers the prospects for further real GDP growth acceleration and the implications for Japanese exporters like Toyota.
Are Asian equity ETFs like EWJ and FXI in purgatory for 2014?
The Japanese ETFs—DXJ and EWJ—performed very well. Meanwhile, both Korean and Chinese ETFs—EWY and FXI—have been flat, with China still in slightly negative territory.
An overall investment growth supports Japan’s economy and Toyota
This article considers the recovery in Japan’s investment data and the implications for domestic exporters such as Toyota.
Wage inflation improves China’s consumption and Baidu’s sales
Wages in China are simply growing much faster than the overall economy, which fuels inflation and real estate bubbles when banks are willing lenders.
Japan’s investment environment dependent upon government deficits
As the Japanese yen continues to weaken, and exports begin to grow, Japan will see better market data in the future.
China’s large caps: Will the iShares ETF, FXI, rally in 2014?
Both the Korean and Chinese ETFs, EWY and FXI, have been flat, with China still in slightly negative territory and the worst performer to date.
Consumer confidence improving China consumption and Baidu sales
This series examines the associated consumption growth trends in China, and considers the implications for Chinese companies like Baidu.
Japan’s business conditions haven’t been this good for a decade
This series examines the key economic indicators in the Bank of Japan’s “beige book,” as we call it in the USA in the case of our Federal Reserve Bank.
Fab Equipment Industry Outlook: What It Says about Lam Research
Lam Research (LRCX) expects its shipments to fall $100 million sequentially to $3 billion in the June quarter.
Most Asia-Pacific Indexes Gain as Markets Wait for Powell
Hong Kong’s Hang Seng Index recovered today after five straight losses.
Asia-Pacific Update: Most Indexes Fall—with a Few Exceptions
Australia’s S&P ASX 200 was the best-performing index in the Asia-Pacific region on July 3. The index gained 0.59% on the day to end near its 12-year high at 6,685.5.
How NZ50, ASX, Singapore, KOSPI Indexes Fared Today
Australia’s ASX200 lost marginally today. Although the index was trading higher until noon, it erased those gains afterward. 70 stocks gained, while 118 fell. BHP Group (BHP) outperformed the index with marginal gains, while Rio Tinto (RIO) gained 0.64%.
ASX Recovers, KOSPI Is Flat, and Singapore Index Retreats
Australia’s ASX200 recovered today after a loss on Friday. After losing 0.55% on Friday, the index rose 0.22% today. Out of 200 stocks in the index, 83 advanced, while 103 retreated. 14 stayed unchanged today. BHP Group (BHP) and Rio Tinto (RIO) were among the gainers, while News Corp (NWSA) lost 1.29% on the Australian Stock Exchange today.
Australian Equities Rose on Boost to Chinese Infrastructure
Australia’s market was back in business today after yesterday’s holiday for the Queen’s birthday.
Nikkei 225 Gains despite Underwhelming Economic Data
The Nikkei 225 gained today after losing marginally yesterday.
KOSPI, ASX, and NZ50 Fell, while Singapore Index Held Steady
South Korea’s KOSPI, which gained yesterday, retreated today.
Hang Seng and KOSPI Recover while Taiwanese Index Falls
Hong Kong’s Hang Seng Index followed China’s lead today.
KOSPI and ASX Break Winning Streak, and Singapore Index Falls Too
South Korea’s KOSPI, which gained in the last two sessions, fell today.
KOSPI, ASX 200, NZ 50 Gain, Singapore STI Is Flat
South Korea’s KOSPI gained 0.18% on May 22 to end the day at 2,061.25. It was the index’s second consecutive gain.
ASX Gains on Surprise Election Results, KOSPI Stays Flat
Australia’s benchmark S&P/ASX 200 Index has continued its dream run while most other Asia-Pacific stocks seem to be under pressure.
South Korea, Singapore Indexes Lose, ASX 200 Gains
South Korea’s KOSPI continued to fall for the second straight day on May 17. The index, which fell 1.2% on May 16, extended its losses by another 0.58%.
China: One of Applied Materials’ Key Revenue Drivers
Applied Materials (AMAT) supplies SME (semiconductor manufacturing equipment) to chip makers all over the world.
Would China Buying More Semiconductors from US Reduce Trade Deficit?
Given that global semiconductor revenues reached $400 billion in 2017, China’s (FXI) proposal to increase semiconductor imports from the US appears positive.
How Could a Memory Collaboration with Intel Benefit China?
Whereas China (FXI) is the largest consumer of semiconductors in the world, it meets most of its needs through semiconductor imports.
When Is BlackBerry Expected to Return to Revenue Growth?
As we observed in the previous part of this series, Wall Street analysts expect a revenue decline of 27% YoY (year-over-year) for BlackBerry (BB) in fiscal 4Q18 with revenue of $216.8 million.
EA’s Mobile Gaming Revenue: Key Drivers
In the chart below, we can see that net bookings for Electronic Arts’ (EA) Mobile platform rose 5% YoY (year-over-year) to $183 million in fiscal 3Q18.
A Look at Electronic Arts’ Huge Player Base across Verticals
EA’s FIFA franchise remains one of the leading games worldwide. It has approximately 42 million players on console platforms PlayStation (SNE) and Xbox (MSFT).
What Fitbit Is Focusing On in Fiscal 2018
Fitbit in a transition phase During Fitbit’s (FIT) 4Q17 earnings call, CEO James Park stated that Fitbit is in a multiyear transition process. The company aims to leverage its core brand assets, data, and large customer community. Fitbit needs to focus on product innovation to beat competition from Apple Watch and peers Garmin (GRMN), Korea’s (EWY) Samsung […]
North Korea Could Be a Major Political Risk
While North Korea and South Korea (EWY) have initiated talks recently, North Korea’s nuclear ambitions mean that tensions will always remain in the region despite temporary overtures of peace from both sides.
Broadcom’s Response to Qualcomm’s Statements against the Takeover
Qualcomm opposes a takeover bid by Broadcom (AVGO) because it feels the latter’s management may not give justice to its transformative 5G opportunity.
Cryptocurrencies Recover from the Rout: What’s Next?
The cryptocurrency market has had a rebound. As of February 7, 2018, in the early morning hours, all digital currencies had rebounded from their previous day’s close. Bitcoin rose 22.8%.
Things to Know Before You Buy Bitcoin
The sharp rise and fall in the price of bitcoin are mainly because ownership of the currency is heavily concentrated in just a few hands.
South Korea to Implement New Cryptocurrency Regulations
Ripple struggled on Monday and couldn’t manage to post significant gains.
Cryptocurrency Market Cap: Details on Ethereum and Ripple
About $200 billion was wiped off the total market capitalization of the cryptocurrency market due to the recent fall in cryptocurrency prices.
Why Asian Markets Grabbed Investors’ Attention in 2017
Stock markets around the world rallied in 2017. Asian equities, in particular, grabbed investors’ attention in 2017, as they have been outperforming other markets.
What Qualcomm’s Licensing Business Is Doing about Legal Headwinds
Over the past two years, Qualcomm has paid ~$2.7 billion in fines to regulators in China and South Korea and is now facing a $774-million fine from Taiwan.