WEBVTT - Kioxia Slides, SK Hynix Tumbles, BayCurrent Rises

0:00:02.520 --> 0:00:07.440
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.560 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.480 --> 0:00:15.880
<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

0:00:16.680 --> 0:00:18.280
<v Speaker 3>Let's take a look at some stocks on the move

0:00:18.320 --> 0:00:20.919
<v Speaker 3>today in Asia. I'm Stephen Carroll with Caroline Hepker, and

0:00:20.920 --> 0:00:24.360
<v Speaker 3>we're joined by our markets reporter Anthony Stevens for more

0:00:24.400 --> 0:00:28.360
<v Speaker 3>anti the technology story back driving markets today, particularly over

0:00:28.560 --> 0:00:31.560
<v Speaker 3>the latest reports of Chinese advancements and chip make chrip

0:00:31.560 --> 0:00:35.120
<v Speaker 3>equipment making. Let's start this is playing out in the

0:00:35.200 --> 0:00:36.240
<v Speaker 3>Japanese markets.

0:00:36.960 --> 0:00:40.840
<v Speaker 1>Yeah, morning, guys. Again, it's this momentum of Chinese technological

0:00:40.880 --> 0:00:43.279
<v Speaker 1>improvement that is hurting the air chip trade one thing

0:00:43.320 --> 0:00:45.760
<v Speaker 1>at a time. And now we're on the hardware side

0:00:45.800 --> 0:00:49.080
<v Speaker 1>of things. So there is speculation reported by the Information

0:00:49.200 --> 0:00:53.360
<v Speaker 1>that Channel will be able to mass produce deep ultraviolet

0:00:53.400 --> 0:00:57.480
<v Speaker 1>technology etching machines into twenty twenty seven, up to around

0:00:57.480 --> 0:00:59.800
<v Speaker 1>twenty machines. Now this is a very small part of

0:01:00.080 --> 0:01:03.200
<v Speaker 1>kind of ASML's overall market, but it does point to

0:01:03.240 --> 0:01:06.400
<v Speaker 1>the possibility that Channel will be able to manufacture much

0:01:06.600 --> 0:01:09.720
<v Speaker 1>wider range of chips with a much higher capacity, and

0:01:09.760 --> 0:01:13.160
<v Speaker 1>that is smashing kind of simpler chips across Japan. So

0:01:13.160 --> 0:01:16.000
<v Speaker 1>for example, Kyoksha that makes more of the simpler memory

0:01:16.360 --> 0:01:19.200
<v Speaker 1>in the nand space is down eighteen percent. Some of

0:01:19.240 --> 0:01:22.600
<v Speaker 1>the MLCC capacitor names, the testing names, these are down

0:01:22.720 --> 0:01:26.760
<v Speaker 1>double digits. For example, Ibiden is down eleven percent, Tokyo

0:01:26.760 --> 0:01:29.120
<v Speaker 1>Electron is down eleven percent. And these are some of

0:01:29.120 --> 0:01:31.920
<v Speaker 1>the biggest moves that you've seen in single names within

0:01:32.000 --> 0:01:35.080
<v Speaker 1>the Japan index in a very long time on a

0:01:35.160 --> 0:01:38.240
<v Speaker 1>single day. What's keeping the index up, on the other hand,

0:01:38.319 --> 0:01:41.080
<v Speaker 1>kind of ironically, is the people that consume the chips,

0:01:41.120 --> 0:01:42.360
<v Speaker 1>so Nintendo and Sony.

0:01:43.800 --> 0:01:45.560
<v Speaker 4>Yeah, that's really interesting. Look, we're going to have to

0:01:45.560 --> 0:01:48.680
<v Speaker 4>watch a SML. You know, their share price was down

0:01:48.720 --> 0:01:52.960
<v Speaker 4>as a result of that reporting, as you say, representative

0:01:53.280 --> 0:01:55.560
<v Speaker 4>for SML decline is common. I mean, it's going to

0:01:55.560 --> 0:01:58.000
<v Speaker 4>be a very very interesting story getting forwards, isn't it.

0:01:58.280 --> 0:02:01.720
<v Speaker 4>What all of this means having that also massive volatility

0:02:01.840 --> 0:02:05.240
<v Speaker 4>to tying a written markets how the big chip names

0:02:05.800 --> 0:02:06.560
<v Speaker 4>taking the news.

0:02:07.320 --> 0:02:09.840
<v Speaker 1>Yeah, Korea as an index does not have that kind

0:02:09.840 --> 0:02:13.079
<v Speaker 1>of buffer of domestic names or any kind of offset whatsoever. Right,

0:02:13.080 --> 0:02:15.880
<v Speaker 1>it's just pure chip names. And when Heinex is down

0:02:15.919 --> 0:02:18.799
<v Speaker 1>thirteen percent, you're probably heading to a very bad day.

0:02:19.280 --> 0:02:22.120
<v Speaker 1>To add to that, every other smaller component within the

0:02:22.160 --> 0:02:25.919
<v Speaker 1>chip ecosystem is also struggling. For example, Samsung electro Mechanics

0:02:25.919 --> 0:02:28.519
<v Speaker 1>is down seventeen and a half percent, and that led

0:02:28.520 --> 0:02:31.240
<v Speaker 1>to Korea being halted today on a circuit breaker when

0:02:31.240 --> 0:02:34.000
<v Speaker 1>the market crapped out eight percent and it's kind of

0:02:34.000 --> 0:02:36.919
<v Speaker 1>stayed there and traded below that, which is generally speaking

0:02:36.960 --> 0:02:39.400
<v Speaker 1>quite a bad sign for Korea. In the past kind

0:02:39.440 --> 0:02:43.000
<v Speaker 1>of episodes of a circuit breaker, it's bounced up quite strongly.

0:02:43.080 --> 0:02:46.200
<v Speaker 1>What is in question here now is whether these Chinese

0:02:46.240 --> 0:02:49.400
<v Speaker 1>DEUV machines a love China to build out massive memory

0:02:49.400 --> 0:02:52.840
<v Speaker 1>capacity that offsets their HBM disadvantage.

0:02:53.880 --> 0:02:56.560
<v Speaker 3>And while all of this is happening and the pressure

0:02:56.600 --> 0:03:00.760
<v Speaker 3>on chip companies, some software companies right benefesting.

0:03:01.639 --> 0:03:03.920
<v Speaker 1>Yeah, this is an aspect of the kind of factor

0:03:04.000 --> 0:03:07.400
<v Speaker 1>investing that quanti investors, amongst others are engaged in. So

0:03:07.680 --> 0:03:11.160
<v Speaker 1>high momentum trades have been the standout performer in the

0:03:11.280 --> 0:03:13.960
<v Speaker 1>year as the AI trade got going, and now they've

0:03:14.000 --> 0:03:17.640
<v Speaker 1>reversed really really hard. So the GS high momentum long

0:03:17.680 --> 0:03:20.520
<v Speaker 1>shot basket was down seven percent per second day in

0:03:20.560 --> 0:03:23.400
<v Speaker 1>a row, and the other side of long momentum in

0:03:23.400 --> 0:03:26.799
<v Speaker 1>tech is short software, and so as people unwind their

0:03:26.880 --> 0:03:30.960
<v Speaker 1>long AI hardware space, they have to cover their software shots,

0:03:31.000 --> 0:03:33.920
<v Speaker 1>and we're seeing that across the region. We're seeing, for example,

0:03:33.919 --> 0:03:36.240
<v Speaker 1>in Hong Kong the HS tech trade a lot better

0:03:36.280 --> 0:03:38.960
<v Speaker 1>than the Chinese and names like king d International Software

0:03:39.000 --> 0:03:41.400
<v Speaker 1>that's up two point three percent, and even software in

0:03:41.480 --> 0:03:43.600
<v Speaker 1>Japan is trading slightly up on the day. Bay Current

0:03:43.720 --> 0:03:46.200
<v Speaker 1>is slightly up on the day, so that's probably going

0:03:46.240 --> 0:03:48.320
<v Speaker 1>to carry over to the US. We saw a very

0:03:48.320 --> 0:03:52.280
<v Speaker 1>decent dynamic on Friday, sorry yesterday, when all of these

0:03:52.280 --> 0:03:56.840
<v Speaker 1>software names for trading quite well despite tech semiconductors getting hit,

0:03:56.960 --> 0:03:59.480
<v Speaker 1>keeping the SMP flat overall.

0:04:00.040 --> 0:04:04.440
<v Speaker 2>Stockmover's report from Bloomberg Radio. Check back with us throughout

0:04:04.440 --> 0:04:07.200
<v Speaker 2>the day for the latest roundup of companies making news

0:04:07.280 --> 0:04:10.560
<v Speaker 2>on Wall Street and for the latest market moving headlines.

0:04:10.800 --> 0:04:14.800
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:14.840 --> 0:04:17.919
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:17.960 --> 0:04:19.320
<v Speaker 2>Bloomberg Business app.