Hedge funds dumped Japanese stocks ahead of upper house election, says Goldman
HONG KONG (Reuters) -Global hedge funds offloaded Japanese equities at the sharpest pace in almost two-and-a-half months last week, just ahead of the country's upper house election on Sunday, Goldman Sachs said in a note.
Sunday's election dealt a major blow to Prime Minister Shigeru Ishiba and his ruling coalition, just as investors who had been selling Japanese bonds and stocks in the run up to the election had expected.
Japan's benchmark Nikkei 225 and Topix have dropped 1.7% and 0.6%, respectively so far this month, bucking the rally in other stock markets.
Both indexes closed down on Friday.
Sunday's outcome further weakens Ishiba's grip on power, even though he has vowed to remain party leader to complete trade tariff negotiations with the United States.
The selling by hedge funds between July 11 and July 17 was mainly driven by increased short bets and a relatively moderate reduction in long positions, according to a Goldman Sachs prime brokerage note on Friday, seen by Reuters on Monday.
Markets in Japan were closed for a holiday on Monday, but the yen strengthened while Nikkei futures rose slightly, as the election results appeared to be already priced in.
Overall, hedge funds remain overweight Japan compared to its weight in the MSCI World Index by 0.6%, Goldman said.
Analysts said uncertainty about the prime minister's future has increased and could lead to "policy paralysis" and larger fiscal deficits.
"This marks the first time since 1955 that the LDP-led government has fallen below a majority in both the lower and upper house, potentially increasing political instability in Japan," MUFG analysts said in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Crowded by EV Rivals, Tesla Preps For Critical Earnings Report
For what feels like the third or fourth time in a row now, Tesla is gearing up for what may be the most important earnings call in its history. The electric vehicle maker reports after the bell today, holding its first call with analysts and investors at the dawn of a new era that finds the company squeezed between increased competition and a high-stakes feud involving its enigmatic CEO and the US federal government. At stake are billions in lucrative tax credits. Buckle up, things could get pretty bumpy. READ ALSO: Tariffs 'The World Can Live With': US-Japan Trade Pact Pushes Markets to Record Highs and Amazon, Meta Wear AI-mbitions on Their Wrists Credit Score After something of a shareholder mutiny earlier this year sparked by his divided attention while serving as an aide to President Trump, Elon Musk has seemingly quelled the critics. Now, Tesla must confront its myriad headwinds. First and foremost: The regulatory credits Tesla sells to combustion-engine carmakers to offset their tailpipe emissions. Selling the credits has been big business for Tesla, generating more than $10 billion in revenue since 2019 and accounting for a substantial portion of its free cash flow in 2024. Recent legislation, however, eliminates the hefty fines that traditional automakers face for failing to reach emissions standards, thus reducing the demand for Tesla's carbon credits. Tesla's credit sales already dipped in the first quarter, generating revenue of just $595 million compared with $692 million in the final quarter of 2024. Analysts at William Blair and Co. recently projected that revenue in the category might fall by 75% next year, and be virtually eliminated by 2027. Analysts at Piper Sandler, meanwhile, are slightly more bullish, recently projecting that 'Tesla will still book around $3B in credits this year, followed by $2.3B in 2026.' Many legacy automakers have long-term contracts for carbon credits from Tesla. Still, those same legacy automakers are suddenly catching up to Tesla in the EV realm: While Tesla remains the EV king in the US, its sales are shrinking just as rivals' are growing. The Automotive News Data Center estimates that Tesla sold 125,000 EVs in the US in the second quarter, down almost 17% year-over-year (Tesla doesn't break down its delivery figures by region). GM, meanwhile, reports that it sold 46,280 EVs in the second quarter and 78,167 EVs so far this year, representing a 111% increase from 2024. That puts GM's domestic EV market share at around 13%, while most estimates peg Tesla's once-dominant US market share at just 43% now. 'GM is quietly building trust while Elon burns it,' Paul Waatti, director of industry analysis for AutoPacific, recently told USA Today. Bleep Bloop: Still, Tesla has a sky-high forward price-to-earnings ratio for a reason. Thus far, at least, Musk has been able to sell investors on a future of self-driving cars and robotics. A robotaxi pilot program launched in Austin, Texas, earlier this summer. 'Outside of guidance, the market will likely be focusing on the robotaxi business, which had to navigate a slew of weather problems,' David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, told The Daily Upside. 'The company has a 'hopes and dreams' multiple, so anything focusing on [autonomous vehicles], robotics and the other innovative products should be the focal point.' This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Former Ameriprise Advisors Launch RIA, Laurel Oak Wealth Management, Backed by Goldman Sachs
MARLTON, N.J., July 24, 2025--(BUSINESS WIRE)--A team of five New Jersey-based financial advisors who previously managed more than $2.3 billion in client assets has launched Laurel Oak Wealth Management, a new independent registered investment advisory firm. The firm delivers personalized financial planning and investment management to clients across the U.S. Founded by industry veterans Christopher Heiser, Robert Andreacchio, Louis LaSelva, Matthew Fitzgerald, and Keith Radimer, Laurel Oak combines more than 135 years of collective wealth management experience. Previously with Ameriprise Financial, the team has found success serving multigenerational families, professionals, and business owners. They stand out for customized strategies in retirement planning, legacy preservation, and complex financial transitions. "Our goal in launching Laurel Oak was to create a firm where advice is personal, communication is clear, and clients always come first," said Christopher Heiser, a founding partner. "As an independent RIA, we now have the flexibility to tailor strategies without the limitations of a corporate agenda." Going independent also meant adopting a modern tech stack, helping to streamline onboarding, reporting, and communication. This means less paperwork, faster response times, and greater transparency at every step. To support that mission, Laurel Oak chose Goldman Sachs as their custodial partner, entrusting them to securely hold client assets and execute transactions under the firm's direction. With Goldman Sachs' digital-forward platform, the team gains access to institutional-grade tools that elevate both client security and service delivery. The dedicated transition support staff helped ensure a smooth move, resolving any complications quickly and efficiently. "We are pleased to be the custodial platform of choice for Laurel Oak Wealth Management," said Bill Dalton, Head of RIA Custody Sales at Goldman Sachs. "Our digital-forward platform will enable their advisors to access Goldman Sachs' institutional-grade products and services. Our team looks forward to working with Laurel Oak Wealth Management and supporting them as they grow." "Our growth has always been rooted in one principle: showing up for people when it matters most," added Louis LaSelva. "Laurel Oak represents that mindset at scale." Laurel Oak Wealth Management's main office is located at 5 Greentree Center, 525 Route 73 N, Suite 200, Marlton, NJ. For more information, visit View source version on Contacts Media Contact Jennifer RelovskyMarketing Specialist, Business Development 856-449-8263 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
3 hours ago
- Yahoo
BYD to start first car assembly in Pakistan by mid-2026
China's BYD has announced plans to commence the assembly of its first electric car in Pakistan by July or August 2026, aiming to meet the increasing electric and plug-in hybrid vehicle demand in the region, a company executive said, according to Reuters. This development comes as part of BYD's strategic expansion in the Asia-Pacific market and follows the company's plan to initiate vehicle sales in Pakistan last year. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service The Insurance Savings You Expect BYD Pakistan sales and strategy vice president, Danish Khaliq, revealed to Reuters that the new assembly plant, currently under construction since April near Karachi, represents a collaboration between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power. The facility is expected to have an initial production capacity of 25,000 units annually on a double shift schedule. However, he did not provide details on when the plant would reach full capacity or when mass production would start. Khaliq further explained that the plant would begin by assembling imported parts and locally producing non-electric components. The initial focus will be on supplying the domestic market, with the possibility of exporting to other right-hand drive countries in the region if it makes economic sense. BYD has already commenced delivering imported EVs in the country since March, with sales surpassing internal targets by 30%, although exact numbers were not disclosed. The market for EVs and plug-in hybrid cars in Pakistan is expected to grow significantly, with Khaliq anticipating a three to fourfold increase by 2025 from around 1,000 units last year. Khaliq noted that BYD is aiming for a 30-35% market share in this segment. According to a HUBCO filing, BYD Pakistan reported a profit of around PKR444m ($1.56m) in the March quarter of this year. The Pakistani market is set to welcome the upcoming launch of BYD's Shark 6 plug-in hybrid pickup truck. The Pakistani government is promoting EV adoption by reducing power tariffs for chargers by 45% in January and encouraging the establishment of private charging stations, addressing the current lack of infrastructure for all-electric vehicles. "BYD to start first car assembly in Pakistan by mid-2026 – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
