>> THIS IS THE ASIA TRADE. >> YOUR TOP STORIES THIS HOUR, ASIAN MARKETS SET TO OPEN IN THE SHADOW OF RECORD GOLD AND SILVER PRICES. OIL IN FOCUS AS THE TOP LEADER OF IRAN WARNS ABOUT A REGIONAL WAR.AND MONEY MANAGERS INCLUDING BLACKROCK SHORING UP THEIR PORTFOLIOS AGAINST A FRESH BOUT OF INFLATION IF THE FED CHAIR NOMINEE BACKS DEEPER RATE CUTS. THE MODI GOVERNMENT UNVEILS A CAUTIOUS BUDGET TO PROTECT INDIA. SHERY: WE WILL WATCH FOR MARKET GYRATIONS GIVEN THE BIG MOVES WE SAW IN THE LAST COUPLE OF SESSIONS. ...

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The service aims to identify deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks, which are available at a discount [1] - It also seeks wide moat stocks, which are high-quality businesses with sustainable competitive advantages, often referred to as "Magic Formula" stocks [1] - Monthly updates and watch lists are provided to keep investors informed about potential investment opportunities [1]

Core Insights - Japan's largest banking groups are actively pursuing the development of JPY-backed stablecoins, with all major "megabanks" now entering the market since the first stablecoin was launched in October 2023 [1][2][6] - SBI Group has announced plans to launch its own stablecoin in the second quarter of 2026, joining Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho in this competitive landscape [1][2] Regulatory Framework - The groundwork for yen stablecoins was established in 2023 through amendments to the Payment Services Act (PSA), which created a legal framework for their issuance and redemption [2] - JPYC Inc. was the first issuer to receive regulatory approval, marking the beginning of Japan's stablecoin race [2] Competitive Landscape - A collaboration among Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho received support from the Financial Services Agency's fintech hub, enhancing their project [3] - The entry of SBI into the stablecoin market increases competition among Japan's megabanks [3] SBI Group's Strategy - SBI has partnered with Startale Group to develop its stablecoin, positioning it as an institutional settlement rail for foreign exchange and tokenized asset flows [4] - The planned stablecoin aims to provide a yen-denominated alternative in a market that is predominantly focused on U.S. dollar assets [4] SBI's Business Focus - SBI is primarily focused on trading and investment rather than retail banking, which differentiates it from traditional megabanks [5] - The group has a significant presence in Japan's digital asset and blockchain ecosystem, including a major crypto exchange and a joint venture with Ripple [5][7] Tokenization Initiatives - In addition to stablecoins, SBI is also focusing on tokenized real-world assets (RWA) and has entered a joint venture with Startale to create an on-chain trading platform for tokenized stocks and other RWAs [7]

Financial Performance - Sumitomo Mitsui shares experienced a jump following the announcement [1] - The Japanese bank increased its profit forecast [1] - The bank boosted dividends [1] - The bank unveiled plans to buy back stock [1]

Group 1: Market Dynamics - Michael Burry, known for his short position against the U.S. housing market, is closing his hedge fund and has taken a $9.2 million short position on Palantir stock, though the status of this position is uncertain [1] - A significant divide is emerging between Federal Reserve governors, who are leaning dovish, and regional bank presidents, who are less so, indicating potential volatility in future monetary policy [2] - Expectations for a Federal Reserve rate cut in December have shifted dramatically, with the likelihood now being described as a "coin flip," moving the next fully priced rate cut to March [3] Group 2: Stock Market Performance - U.S. stock markets experienced significant declines, with major indices posting their largest falls in a month, particularly in consumer discretionary and technology sectors, which fell by 2.7% and 2.4% respectively [4] - The dollar index decreased by 0.4%, marking its sixth decline in seven sessions, while Bitcoin fell below $100,000, reaching its lowest point since May [4] Group 3: Fiscal Policy and Inflation - Both the U.S. and Japan are employing fiscal stimulus as a tool to combat inflation, with U.S. President Trump proposing a $2,000 check to households funded by increased tariffs, despite previous intentions to use tariff revenues to reduce the budget deficit [10][11] - Japan's new Prime Minister Takaichi is also advocating for expansionary fiscal policies, preparing a stimulus package likely exceeding last year's $92 billion, aimed at mitigating rising prices [14] - The approach of using fiscal stimulus to address inflation is seen as unorthodox and potentially counterproductive, as both countries are not currently facing economic crises, with steady growth and low unemployment [17][19]

Core Insights - JPYC has launched a yen-pegged stablecoin, fully backed by yen deposits and Japanese government bonds, aiming to bridge traditional banking and blockchain payments [1][2] - The stablecoin market is dominated by dollar-pegged stablecoins, which account for 99.6% of the $308 billion market, while yen-pegged stablecoins represent only 0.2% [3][4] - JPYC plans to issue up to ¥10 trillion (approximately $66 billion) of the new stablecoin over the next three years, with no transaction fees at launch [5][6] Company Developments - JPYC's stablecoin complies with Japan's updated regulations on digital money, ensuring investor protection and transparency [6] - The launch coincides with Japan's three megabanks preparing to introduce their own stablecoins, indicating a competitive landscape [6][7] Market Context - Analysts predict significant growth in the stablecoin sector, with forecasts of reaching over $3 trillion by 2030 [4] - Stablecoin issuers are becoming major holders of US Treasuries, indicating their growing influence in the financial market [3][4]

Core Insights - Japan's three largest banks, Mitsubishi UFJ Bank, Sumitomo Mitsui, and Mizuho, are collaborating to launch stablecoins pegged to the Japanese yen and US dollar to compete with USDT and USDC [1][2] - The yen-backed stablecoin will initially be utilized for settlements by Mitsubishi Corporation, with plans for broader adoption across Japan [1][2] - The initiative is supported by Progmat, a blockchain infrastructure company established by MUFG, which will oversee the issuance and governance of the stablecoin [3][4] Group 1 - The three megabanks serve over 300,000 major business partners and aim to create a structure for corporate clients to transfer stablecoins under uniform standards [2] - The banks have partnered with various players in the crypto sector, including Bitbank, Avalabs, and Fireblocks, to enhance the stablecoin's infrastructure [4] - The stablecoin, named JPYC, will maintain its peg to the yen through reserves of highly liquid assets, with plans to issue 1 trillion yen (approximately $6.64 billion) over the next three years [5] Group 2 - The global interest in stablecoins is rising, with the total market capitalization recently surpassing $307 billion, where USDC and USDT dominate the market [6] - Currently, only Circle's USDC has received approval as a global dollar stablecoin for use in Japan, highlighting the competitive landscape [6]

Japan’s three major banks—MUFG, Sumitomo Mitsui, and Mizuho—are collaborating to launch a stablecoin pegged to the Japanese yen and US dollar. This initiative aims to facilitate seamless cross-border settlements, with Mitsubishi Corporation serving as the first application scenario. The three banks collectively have over 300,000 major business partners. https://t.co/CLnNZ0IgJg ...

Core Viewpoint - Investors are evaluating the value opportunities between Sumitomo Mitsui (SMFG) and National Australia Bank Ltd. (NABZY) in the foreign banking sector [1] Valuation Metrics - Both SMFG and NABZY have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - SMFG has a forward P/E ratio of 11.30, while NABZY has a forward P/E of 19.26, suggesting SMFG is more attractively priced [5] - SMFG's PEG ratio is 0.82, compared to NABZY's PEG ratio of 10.19, indicating better growth relative to its valuation for SMFG [5] - SMFG has a P/B ratio of 1.08, while NABZY's P/B ratio is 2.27, further supporting the argument that SMFG is undervalued [6] - Based on these valuation metrics, SMFG earns a Value grade of B, while NABZY receives a Value grade of D [6] Investment Conclusion - Despite both stocks having solid earnings outlooks, SMFG is identified as the superior value option based on the discussed valuation figures [7]

Core Viewpoint - The Japanese firm's SMBC unit intends to increase its ownership in the Wall Street bank to as much as 20% [1] Company Summary - SMBC is planning to raise its stake in a Wall Street bank, indicating a strategic move to strengthen its presence in the U.S. financial market [1]