Japan's 'Seven Samurai' & How to Trade Japan Stocks in SG

Jul 9 18:23

1.0 Nikkei225 index and the 'Seven Samurai' surged since 2023

The Japanese market has set a number of records this year: the Bank of Japan announced an increase in benchmark interest rates, marking the era of negative interest rates comes to an end. Besides, the Nikkei 225 index scaled a 34-year peak and rose by over 30% in 2023, leading the global stock market.

Japan's 'Seven Samurai' boasting up to a 60% surge in Q1, which has a greater performance than US 'Mag Seven'. The concept of Japan's 'Seven Samurai' in Japanese stocks was proposed by Bruce Kirk, Japan equity strategist at Goldman Sachs, benchmarking the 'Magnificent Seven' of the US stock market. Janpan's 'Seven Samurai' includes Mitsubishi Corp, one of Warren Buffett favorite five trading companies, 2 automaker giants Toyota and Subaru, and 4 semiconductor giants: Screen Holdings, Advantest, Disco and Tokyo Electron.

2.0 The 'Seven Samurai'

2.1 Buffett's top bet: Mitsubishi Crop.

In Japan, Mitsubishi Corporation, Mitsui&Co., Itochu Corporation, Sumitomo Corporation, and Marubeni are the top 5 trading enterprises in Japan. These 5 major consortium control nearly 99% of Japan's large-scale manufactorers and trading companies, in which Mitsubishi Crop is the largest one.

Established in 1950, Mitsubishi Corporation's businesses covers various fields, including petroleum production, chemicals and metals, agriculture, logistics, real estate and finance. As of 10th April, Mitsubishi Corpoation cumulative increase in 2023 soared 150%. In Feburary, Mitsubishi announced spending 500 billion yen (approximately 3.37 billion US dollar) to repurchase up to 10% of its shares. This is Mitsubishi Crop.'s largest repo plan since 2016.

2.2 Automablie leaders: Toyota Motor Crop and Subaru

Toyota Motor was founded in 1937 by Kiichiro Toyoda. It is one of the largest automobile manufacturers worldwide and has been the top selling car brand of four consecutive years. Toyota Motor Crop is one of the leading companies which propels the Nikkei index's rise, which has a 100% increase of its share price since the beginning of 2023.

Toyota Motor is the largest external shareholder of Sabura presently, holding around 20% of its stake. Due to the outstanding performance of fuel vehicle markets, Sabaru predicted its comprehensive net profit of this fiscal year would rise by 70% to 340 billion yen.

2.3 Semiconductor giants: Tokyo Electron, Advantest, DISCO and Screen Holdings

Established in 1963, Tokyo Eletron is the largest semiconductor equipment manufacturer in Japan and the top 3 worldwide. It takes the first or second place of market share in terms of the four dominant equipments (deposition, lithography, etch, cleaning). With the increasing demand of semiconductor chips, TEL's overall revenue will grow steadily. Because of the artificial intelligence wave, the share price of Tokyo Electron has surged over 200% since 2023, making TEL be the third largest enterprise in Japan and the second weighted stock of Nikkei 225 index.

Advantest is a giant among the semiconductor testing equipment industry, whose market share took 56.06% in SoC and 46.58% in memory test systems in 2022. Its share price has soared by over 200% since the beginning of 2023, with a 42% increase in Q1, making it the third weighted stock of Nikkei 225 index.

Screen Holdings is the leader in the wafer cleaning equipment sector, which was founded in 1943, entered the semiconductor industry in 1975, invented the first rotary wafer cleaning system in 1983. The global semiconductor cleaning equipment market is highly concentrated, with four enterprises Screen Holdings, TEL, LAM and SEMES occuping over 90% of the market share, in which Screen Holdings accounts for 45.1% of the global market share in semiconductor cleaning equipment sector. The share price of this company has a significant rise which has climbed over 300% since the start of 2023.

Established in 1937, DISCO is one of the semiconductor manufacturing giants. According to EET China, the top 3 enterprises in the global dicing machine market are DISCO, ACCRETECH and ADT, in which DISCO has the largest market share, accounting for around 70%. From the perspective of the trend of its stock price, this company is aslo the winners in the AI wave, As of 2nd April, its cumulative increase since 2023 has exceeded 353%.

3.0 How to invest Japan stocks on Moomoo

3.1 Trading hours

Morning session: 9:00 AM - 11:30 AM JST (11:30 AM - 2:00 PM SGT)
Afternoon session: 12:30 PM - 3:00 PM JST (11:30 AM - 2:00 PM SGT)

(Opening and closing auctions occur at the start and end of both the morning and afternoon sessions)

3.2 Trading rules

Minimun trading unit: trades are typically in 100-share lots.
Order types: various order types are accepted, including limit, market, and conditional orders (stop limit, stop market, trailing stop limit, and trailing stop market orders)
Time-in-force: day (DAY) and good-till-cancelled orders (GTC) are supported.

3.3 How to access the Japan market on moomoo:

1. Tab Markets >> JP

2. Tap trade on any Japan stock page to start trading.

To help you track market movements, moomoo offers:

Instant access to real-time quotes for TSE-listed stocks and TOPIX index
Live quotes for Nikkei 225 index

If you are optimistic about the Japanese stock market, you can take the first step to invest in Japanese stocks on Moomoo SG.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content.

Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.

In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd.，Futu Securities (Australia) Ltd, Moomoo Financial Canada Inc., and Futu Malaysia Sdn. Bhd. are affiliated companies.

Source:

Japan's 'Seven Samurai' Rivaling U.S. 'Mag 7': Who Will Lead the Next Investment Surge?

Buffett's Lucrative Bet on Japan: What Investors Can Learn from His Success

Japan Stock Trading is now available on moomoo! Want to invest in the best of Japan?

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