WEBVTT - Minimax Down, Nintendo Drops, MUFG Dips 

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<v Speaker 1>Bloomberg Audio Studios. Podcasts. Radio.

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<v Speaker 2>News.

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<v Speaker 1>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 1>in the stock market, harnessing the power of Bloomberg data.

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<v Speaker 3>Let's take a look at some stocks on the move

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<v Speaker 3>today in Asia. I'm Stephen Carroll with Caroline Hepker, and

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<v Speaker 3>we're joined by our markets reporter, Anthony Stevens. For more, Anthony,

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<v Speaker 3>let's start with Chinese internet companies getting rocked by a

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<v Speaker 3>deluge of share sales, but also speculation around a new

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<v Speaker 3>deep-seek AI model.

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<v Speaker 2>Yeah, we see the KWeb US ETF trade quite badly

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<v Speaker 2>in the US. That is the ETF referencing the Chinese

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<v Speaker 2>internet space. And that is following through into the Hong

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<v Speaker 2>Kong live session. We see Alibaba down 3.5%, Tencent down 2%,

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<v Speaker 2>and a lot more damage in the smaller Chinese AI

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<v Speaker 2>LLM names, Z.AI, which is down almost 9%. and Minimax,

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<v Speaker 2>which is down 7%. Now, these latter names are quite

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<v Speaker 2>exposed on the two fronts of increased supply in the

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<v Speaker 2>AI space from potential IPOs, from the likes of DeepSeek

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<v Speaker 2>and Moonshot. and fundamentally from competition from DeepSeq. Of course,

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<v Speaker 2>they've also been under pressure from the strong performance in

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<v Speaker 2>the US models from GPT-6. And now they face the

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<v Speaker 2>prospect of a new DeepSeq model that is even better.

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<v Speaker 2>So they seem locked into this AI arms race and

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<v Speaker 2>look very likely to have to raise new equity capital.

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<v Speaker 2>That's what the market is worried about here, that these

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<v Speaker 2>two companies still sitting on triple digit gains for the

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<v Speaker 2>year come into lockup period and sell more shares.

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<v Speaker 3>Really interesting. Well, there's also continuing pressure on companies that

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<v Speaker 3>need memory chips. What stands out today?

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<v Speaker 2>As you guys got to air, there was a headline

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<v Speaker 2>that the Chinese AI chip makers are increasing prices due

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<v Speaker 2>to a memory shortage. It's that very same memory shortage

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<v Speaker 2>that is hurting people that make consumer electronics. Most notably,

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<v Speaker 2>you have Nintendo standing out here. Nintendo is down 5.2%

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<v Speaker 2>as it gets crushed between these higher prices for components

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<v Speaker 2>and the stronger yen. So not a very good composition

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<v Speaker 2>for Nintendo. Similarly, in China, you have Xiaomi down 1.7%.

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<v Speaker 2>Xiaomi has to contend with the new model of iPhone

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<v Speaker 2>phones that just came out. Also higher prices for components

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<v Speaker 2>in its EV and phone business. And that stock just

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<v Speaker 2>continues to get hit and has been a downtrend all year.

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<v Speaker 3>And in Japan, we've had some new commentary from a

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<v Speaker 3>policymaker from the BOJ, Kazuyuki Masu, talking about the Bank

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<v Speaker 3>of Japan continuing to raise its benchmark rate to ensure

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<v Speaker 3>the price trend doesn't exceed 2%. So, adding to this

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<v Speaker 3>fuel and this commentary around rate hikes from the BOJ,

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<v Speaker 3>that's helping to lift Japanese banks.

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<v Speaker 2>As we've been discussing for a couple of days, the

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<v Speaker 2>BOJ is under a lot of pressure to prove the

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<v Speaker 2>credibility of the Japanese government in in strengthening the yen

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<v Speaker 2>and also getting inflation under control. The two-year JGB is

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<v Speaker 2>as high above the rate as it's been since 2005,

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<v Speaker 2>when Japan first emerged from quantitative easing. So there is

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<v Speaker 2>a lot of upward pressure on rates. Whether the BOJ

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<v Speaker 2>follows through or not is another topic. But for now,

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<v Speaker 2>it does look like the rates environment for the banks

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<v Speaker 2>is supportive. And every time tech sells off, the Japanese

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<v Speaker 2>banks take off on the other side. You have the

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<v Speaker 2>Topics Bank's index bucking the market, being flat today. The

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<v Speaker 2>Topics Bank's index is up 1.5%, led by MUFJ up 1%,

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<v Speaker 2>and SMFJ up 1.2%.

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