SchusterWatch #858 (08/31/2026)
IPOX® Japan (IPJP) leads gains ahead of shortened U.S. trading week.
Pressure from Rates and Rotation: IPOX® 100 U.S. (IPXO) falls for 2nd week.
Big Movers: SOLS, ANDG, DAVE, 278470 KS, SN US, MICC US, SNTIA NO.
IPOs: Fast-fashion-focused SHEIN Global Holdings (625 HK) set to debut Monday.
SUMMARY: Asia-focused portfolios led the performance of the IPOX® Indexes last week, with the IPOX® Japan (IPJP) extending its YTD gain to +67.97%. Amid sticky rates, sector rotation, and a holiday-driven market, IPOX® 100 U.S. (IPXO) and IPOX® Europe (IPOE) fell for a second consecutive week.
ASIA STRENGTH: Post-earnings momentum and the ongoing rotation in favor of Japanese firms pursuing corporate actions propelled the IPOX® Japan (IPJP) by +1.97% to +67.97% YTD last week, +3663 bps YTD ahead of the Japanese market. 06/26 IPO data platform Go Inc. (581A: +22.12%), a top holding in the IPOX®-managed Rakuten Active Global IPO Fund (9I31221B JP: +1.53%), was the standout, soaring after a major upgrade by backer Goldman Sachs (GS US: -0.51%). Weakness across semiconductor exposure such as 12/24 IPO Kioxia (285 JP: -11.82%) did little to derail the otherwise strong sentiment.
Figure: IPOX® Japan (IPJP) vs. benchmarks since 08/2023
Strength extended to markets outside Japan, with the IPOX® China (CNI) adding +1.53% to -3.78% YTD. Notable was Korea-based facial mask maker APR Corp. (278470 KS: +19.87%). Held in the IPOX® International (IPXI), the 02/24 IPO reported exceptional quarterly results. Other weekly post-IPO highs included innovative American-Chinese household appliance maker SharkNinja (SN US: +5.79%). Across Europe, ice cream maker spin-off Magnum Ice (MICC US: +2.36%) and Nordic engineering firm Sentia (SNTIA NO: +11.14%) were standouts.
UNITED STATES: Renewed sector rotation amid U.S. rate anxiety continued to pressure unseasoned equities most, with the IPOX® 100 U.S. (IPXO) particularly affected. The index declined by -1.83% to +10.18% YTD, its second consecutive week of losses. Here, 70% of portfolio holdings fell, with the average (median) stock shedding -1.94% (-1.55%). Weakness among heavyweight AI plays GE Vernova (GEV US: -4.69%) and Sandisk (SNDK US: -6.96%) continued to weigh on the portfolio, with strong gains in specialty chemicals maker Solstice Advanced Materials (SOLS US: +13.12%), professional services provider Andersen Group (ANDG US: +11.08%), and financial technology company Dave (DAVE US: +6.72%) unable to fully mitigate the weekly losses.
THE IPOX® SPAC INDEX: The Index declined -3.80% last week, reducing year-to-date gains to +6.38%. Oilfield services provider National Energy Services Reunited (NESR US: +4.27%) was the best performer. Quantum computing company D-Wave Quantum (QBTS US: -16.67%) was the worst performer, as the retirement of its CFO fueled investor uncertainty. Two SPACs announced merger targets, including Black Spade Acquisition III (BIII US) with Asia-Pacific-focused satellite-to-device connectivity provider Astrum Space. Two SPACs completed business combinations, including Bleichroeder Acquisition II with France-based neutral atom quantum computing company Pasqal (PSQL US: +96.81%), whose shares surged on the first day of trading last Friday. Four new SPAC IPOs launched in the U.S. during the week.
ECM REVIEW: 16 companies went public globally last week, raising a combined $1.33 billion. New listings gained an average of +26.60% from offer price to Friday’s close (Median: -0.97%). As the global IPO calendar remained quiet post-earnings and amid the summer holiday season, the only sizable deal in accessible markets was Chinese semiconductor company Ingenic Semiconductor (3223 HK: -1.10%) in Hong Kong.
This week, the long-awaited IPO of global online fast-fashion firm SHEIN Global Holdings (625 HK) takes center stage. After initial plans to consider New York and London, the company is seeking to raise up to $1.77 billion in Hong Kong. SHEIN is targeting a valuation of around $27 billion, significantly below its reported $100 billion valuation in 2022, amid weaker sales growth and higher costs. Chinese industrial robotics and embodied AI company Mech-Mind Robotics Technologies (9615 HK) is also lined up, seeking to raise up to $300 million.
