WEBVTT - Samsung Electronics Down, JD.com Bump, Marico Up

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<v Speaker 1>Bloomberg Audio Studios.

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<v Speaker 2>Podcasts.

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<v Speaker 3>Radio. News.

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<v Speaker 2>The Stock Movers Report. Your roundup of companies making moves

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg data.

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<v Speaker 1>Take a look at some of these stocks on the

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<v Speaker 1>move today in Asia. I'm Caroline Hepkin. I'm joined by

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<v Speaker 1>Bloomberg's markets reporter, Anthony Stephens. Good to speak to you, Anthony.

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<v Speaker 1>The Tyrex and the Kospi are both down close to 4% today.

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<v Speaker 2>Why? Why?

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<v Speaker 3>We have a continued follow-on from the US sell-off where

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<v Speaker 3>the details actually matter. The Nasdaq was quite bad, but

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<v Speaker 3>there were some subsections of the Nasdaq that were horrendous.

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<v Speaker 3>And most notably, that was in the semiconductor space. We

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<v Speaker 3>had follow-on selling in Intel after its poor results. Marvell

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<v Speaker 3>and Lumentum both got hammered after their mega deal. And

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<v Speaker 3>it's that kind of data center play that is getting

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<v Speaker 3>hit very hard in Taiwan. The breadth on the downside

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<v Speaker 3>is quite astonishingly bad. It's glowing red. Over 80% of

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<v Speaker 3>the stocks are down. And of the stocks that are down,

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<v Speaker 3>you know, solid 20% of them are down more than 5%.

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<v Speaker 3>So it's a really bad day for Taiwan. Local retail

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<v Speaker 3>is extremely leveraged in Taiwan. And they've opened a bunch

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<v Speaker 3>of new accounts here near the highs and they're getting

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<v Speaker 3>hit quite badly. most notably in names like Nanya Tech,

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<v Speaker 3>Media Tech, the big ones, you know, ASE, all these

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<v Speaker 3>names are down 8%. And in Korea, Samsung and Hynix

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<v Speaker 3>are down 4% to 5%. So just across the board,

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<v Speaker 3>tech is quite bad. Also, it's actually quite bad in

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<v Speaker 3>the A shares. We can get into the internet names later,

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<v Speaker 3>but the A share hardware names are down over 10%

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<v Speaker 3>as you guys come in. especially the optical names related

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<v Speaker 3>to the momentum deal. Zongji Inolite is down 12% as

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<v Speaker 3>an example.

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<v Speaker 1>Yeah, absolutely.

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<v Speaker 4>I mean, European stock futures have declined or down about 1.2%

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<v Speaker 4>this morning. So, it's also not expected to be a

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<v Speaker 4>great day in Europe, although, as you say, not as

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<v Speaker 4>bad as what we're seeing in Asia. But then on

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<v Speaker 4>the other hand, lower oil prices do seem to be

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<v Speaker 4>helping some parts of the Chinese market.

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<v Speaker 3>Yeah, and that has some glimmer of hope for the

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<v Speaker 3>European situation. We see a lot of China's consumer-related names

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<v Speaker 3>bouncing very hard here. Some of them are internet names

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<v Speaker 3>because that is for the most part what Chinese internet does.

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<v Speaker 3>JD.com is up around 4%. Meituan is up around a percent.

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<v Speaker 3>Trip.com is up 5%. So a lot of these consumer-facing

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<v Speaker 3>internet plays are quite strong, alongside consumer plays like Macau,

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<v Speaker 3>which is bouncing after a long time.

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<v Speaker 2>It's up 5%.

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<v Speaker 3>And the Chinese sportswear manufacturers, Antal, Leaning, they're up 5%

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<v Speaker 3>as well. Alongside, you know, pretty much every consumer name,

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<v Speaker 3>China Among You Dairy, you know, Heidi Lau, whether you're

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<v Speaker 3>talking about hot pot or milk, it's up.

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<v Speaker 1>Okay. Hot pot or milk. I like that. What about

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<v Speaker 1>Indian stocks? Also doing well.

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<v Speaker 4>But actually, this creates something of a tough position for

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<v Speaker 4>a lot of Asian investors.

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<v Speaker 1>Again, why is that?

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<v Speaker 3>India has been, you know, a consensus underweight. It's been

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<v Speaker 3>really badly impacted by the higher oil price. It doesn't

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<v Speaker 3>have an AI kicker to it. And people have been

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<v Speaker 3>really underweight. Now, earning season has come in in India

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<v Speaker 3>and it's been quite strong across the board, benefiting not

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<v Speaker 3>just from Narendra Modi's infrastructure push but also the broadening

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<v Speaker 3>out of the consumption base past the normal urban centers.

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<v Speaker 3>And we're seeing consumer names like Marico and ITC beat.

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<v Speaker 3>Marico is up 7.5%. Obviously, the oil drop is a

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<v Speaker 3>big kicker there. The banks up 2%. Bharti is up 2.2%.

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<v Speaker 3>India is a position that very few people have, and

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<v Speaker 3>it's benefiting from both the rotation out of Korea and

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<v Speaker 3>Taiwan and from the lower oil price. So, this is

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<v Speaker 3>a very uncomfortable underweight, especially if this market continues to

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<v Speaker 3>go in the last two months of the year.

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<v Speaker 1>Okay. I think that's interesting. Last word on the U.S. midterms.

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<v Speaker 4>How do you think investors in Asia are going to

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<v Speaker 4>be thinking about the sort of post-midterm fallout?

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<v Speaker 3>So I've done a lot of, you know, ringing the

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<v Speaker 3>fences around the investor base today. And a lot of

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<v Speaker 3>people are taking the books down, like this kind of

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<v Speaker 3>drawdown right into that event. If you're thinking about formal

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<v Speaker 3>risk management, professional risk management, you have to take the

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<v Speaker 3>risk down. You're not gambling into that event after taking

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<v Speaker 3>a markdown like what you've taken down today, right? Especially

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<v Speaker 3>in the big markets, Korea, Taiwan. Japan's closed today, thankfully

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<v Speaker 3>for them. And you've gotten hit in your shorts in

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<v Speaker 3>India and China. So it's been a disastrous last couple

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<v Speaker 3>of days for anybody taking institutional risk in equities. And

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<v Speaker 3>they are not going to take a big punt on

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<v Speaker 3>the election. They're taking books down. They'll watch the election

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<v Speaker 3>and then see what happens.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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