logo
Hedge funds dumped Japanese stocks ahead of upper house election, says Goldman

Hedge funds dumped Japanese stocks ahead of upper house election, says Goldman

Yahoo5 days ago
By Summer Zhen
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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Comcast (CMCSA) Looks Oversold: Here's Why Dividend Investors Should Take a Second Look
Comcast (CMCSA) Looks Oversold: Here's Why Dividend Investors Should Take a Second Look

Yahoo

time5 minutes ago

  • Yahoo

Comcast (CMCSA) Looks Oversold: Here's Why Dividend Investors Should Take a Second Look

Comcast Corporation (NASDAQ:CMCSA) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds. A couple watching their favorite show on TV, enjoying the entertainment network service. The company, led by NBC Universal, is a leading creator of content and experiences through its media outlets, studios, and theme parks. It reaches more than 100 million households in the US and continues to have a strong global presence despite already capturing 80% of its domestic audience. What often goes unnoticed is Comcast Corporation (NASDAQ:CMCSA)'s ability to generate substantial revenue. Its connectivity and platforms division serves 52 million customers, each paying over $100 for cable TV and/or internet services. Approximately half of this revenue contributes directly to the company's adjusted EBITDA. Comcast Corporation (NASDAQ:CMCSA) is also a solid dividend payer. It has raised its payouts for 21 consecutive years and currently offers a quarterly dividend of $0.33 per share. As of July 25, the stock has a dividend yield of 3.92%. While we acknowledge the potential of CMCSA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio

Liverpool role reversed after Alexander Isak's latest move in transfer chase
Liverpool role reversed after Alexander Isak's latest move in transfer chase

Yahoo

time15 minutes ago

  • Yahoo

Liverpool role reversed after Alexander Isak's latest move in transfer chase

The last time Liverpool were on a pre-season tour of Hong Kong, the wantaway player citing injuries and hankering for a move was their own in Philippe Coutinho, who was desperate to force through a transfer to Barcelona. Flash forward eight years and as the Reds are put through their paces in the Far East once more, it is Alexander Isak whose name is making headlines where the Premier League holders are now concerned. Having sounded out Isak's availability earlier this summer, an adamant Newcastle were insistent that their star striker was simply not for sale. It's difficult to believe such a clandestine enquiry, which was apparently made earlier this month, was not done without a fair idea of the Sweden international's willingness to move to Anfield, however, should the Magpies have entertained the possibility of a fee upwards of £120m. READ MORE: Virgil van Dijk on Florian Wirtz chat, Liverpool transfer spend and message for Hugo Ektike READ MORE: I was on holiday when a message from Liverpool sporting director Richard Hughes changed my life How much appetite and ability Liverpool have now to resume their fledgling pursuit of the gifted frontman on the back of the latest developments is the major question that, for now at least, lingers on unanswered. Having committed the thick end of £300m on seven new arrivals already this summer, the idea of breaking the British transfer record for Isak seems faintly fanciful for a club who have, rightly or wrongly, developed a reputation as cautious and conservative during the player trading months. This summer, though, sees Liverpool firmly in uncharted territory. A free-wheeling June already made this window the most expensive in club history before a further £79m was committed to prise Hugo Ekitike away from Eintracht Frankfurt this week. It had initially looked as though Ekitike was something of a pivot after the hands-off message about Isak but could both yet join the frontline department at Anfield this summer? For Liverpool to hurtle through the £400m barrier this summer, however, those drunk on transfer discourse might have to sober themselves and factor sales into the equation. A lot will depend on the movements of those interested in the likes of Luis Diaz and Darwin Nunez in that sense. Liverpool are braced for further contact from Bayern Munich having turned down a bid shy of £60m recently and while the Colombia international is not formally in the shop window, Diaz is determined to increase his bottom line and feels he has to move away from Anfield to do just that, with the champions not entertaining talks of a new deal as things stand. Despite the reluctance to offload Diaz, though, the feeling persists that a deal may be struck if Bayern - or other interested parties - offer a fee that is difficult to refuse on Merseyside. That is a subplot that is expected to ramp up in the coming days as the Bundesliga champions mull over their next play. For Nunez, Napoli had been frontrunners but talk of a move to the Serie A champions has quietened in recent days, while claims of Saudi Pro League interest lingers in the background. Al-Hilal made an advance for the Uruguay striker in January but have yet to reignite their interest. It seems impossible that any move for Isak will be made while Liverpool have their current crop of options available to them but the agitation being shown currently might be enough to quicken the Reds' pulse and kickstart some movement up top. With three years left on his contract at St James' Park, Newcastle might justifiably adopt a relaxed stance over the developments of recent days. Their insistence that their star man is not available has merit but there is no escaping that it's been a tortuous summer for Eddie Howe and his backroom staff as they have struggled to land target after target, including Ekitike, who Liverpool initially sounded out about a deal way back in January. Liam Delap, Bryan Mbuemo and Dean Huijsen were all wanted at various points, while Chelsea were able to steal a march on land Joao Pedro from under their noses also. A deal for goalkeeper James Trafford also looks no closer with Manchester City said to be leading that particular race. Benjamin Sekso, of RB Leipzig, is now reportedly a target as the club look to contemplate life without Isak through gritted teeth. A British-record fee for a player who is seeking pastures new and already appears to have downed tools would go a long way towards rectifying a dreadful few weeks off the pitch for a club who had designs on significantly bolstering their squad for another crack at the Champions League this coming campaign. However Newcastle choose to deal with the internal strife overshadowing their pre-season plans, though, there is little denying that the ball has been firmly volleyed into Liverpool's court. What happens next will be fascinating.

Chubb Limited (CB): An Oversold Insurance Giant with a Growing Dividend
Chubb Limited (CB): An Oversold Insurance Giant with a Growing Dividend

Yahoo

time35 minutes ago

  • Yahoo

Chubb Limited (CB): An Oversold Insurance Giant with a Growing Dividend

Chubb Limited (NYSE:CB) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds. A close-up of an insurance agent's hand pointing to a marine insurance policy, highlighting the company's expertise in marine coverage. Chubb Limited (NYSE:CB) ranks among the largest publicly traded property and casualty insurers in the world. In recent years, the company has worked to grow its presence outside of North America, with particular focus on markets in Asia, Latin America, and Europe. Its strategy centers on disciplined underwriting, meaning it takes a careful approach to selecting which risks to insure and how to price them, while also aiming to manage risk across multiple product lines and regions. In the second quarter of 2025, Chubb Limited (NYSE:CB) reported P&C net premiums written of $12.39 billion, which showed a 5.2% growth from the same period last year. Net income rose to $2.97 billion, marking an increase of 33.1%, while core operating income reached a record high of $2.48 billion, reflecting a 12.9% gain. Property and casualty underwriting income reached a record $1.63 billion, representing a 15.0% increase, while the combined ratio stood at 85.6%. Chubb Limited (NYSE:CB)'s cash position also remained stable during the quarter. The company's operating cash flow came in at $3.55 billion and ended the quarter with cash and cash equivalents of $2.4 billion. During the quarter, the company also returned $388 million to shareholders through dividends. In addition, it holds a 32-year streak of consistent dividend growth. The company offers a quarterly dividend of $0.97 per share and has a dividend yield of 1.44%, as of July 25. While we acknowledge the potential of CB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store