WEBVTT - Zhongji Innolight Surges, MUFG Slips, Toyota Drops 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move

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<v Speaker 1>today in ASA. I'm Stephen Carrol with Caroline Hepker and

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<v Speaker 1>we're joined by our markets reporter Anthony Stevens for more.

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<v Speaker 1>And so let's start in China than we're drive by

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<v Speaker 1>Nvitiant optical components being used in data centers is helping

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<v Speaker 1>to lift some companies in that sector.

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<v Speaker 3>Yeah, it's interesting. The China's index is very heavy on

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<v Speaker 3>one small subsection of the air trade, which is the

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<v Speaker 3>optical transceiver. These are basically components that allow servers to

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<v Speaker 3>communicate using lightwaves to reduce obviously the speed of data transmission.

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<v Speaker 3>That's been a very hot sector and it had been

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<v Speaker 3>lifting the China est past the hstick and to be honest,

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<v Speaker 3>to keep up with the COSPY on the way up.

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<v Speaker 3>But just like the costpit had gotten crushed recently. Now

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<v Speaker 3>this new kind of validation of the optical sector by Nvidia,

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<v Speaker 3>you know, focusing investors' minds on the kind of growth

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<v Speaker 3>opportunity in that space. It's interesting that one of the

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<v Speaker 3>big names in optical, Zongji in a light, had one

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<v Speaker 3>of Hong Kong's largest IPOs in seven years. So it's

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<v Speaker 3>been very lucky timing for Hong Kong investors on that IPOs,

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<v Speaker 3>it's posted three days of strong gains. Also, it's a

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<v Speaker 3>competitive e opto link in Shanghai is also trading quite well.

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<v Speaker 4>Interesting turning data into light okay. In terms of japan

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<v Speaker 4>banks continuing to struggle after the intervention into the year.

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<v Speaker 3>Now, why it's been interesting to see the Japanese earning

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<v Speaker 3>season on banks go really well at a headline level

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<v Speaker 3>and be rewarded with pretty shocking price performance. And the

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<v Speaker 3>reason for that is the go forward picture looks a

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<v Speaker 3>lot more complex for the banks on the macro than

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<v Speaker 3>it had been during the rest of the year. So

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<v Speaker 3>now we have this question of whether the BOJ is

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<v Speaker 3>going to continue to hike crate alongside a currency intervention.

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<v Speaker 3>So it was skeptical. People were skeptical about the BOJ

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<v Speaker 3>going in the first place. Now do they go alongside

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<v Speaker 3>a tightening that comes from a stronger FX is an

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<v Speaker 3>open question, and you're seeing that pressure on banks, most

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<v Speaker 3>notably from MUFG and SMFG after their earnings, they've traded

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<v Speaker 3>quite badly. And this has been in the context of

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<v Speaker 3>a Japanese market that is struggling for direction.

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<v Speaker 1>Here we'll staying in Japan. Some AI bottlenecks are helping

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<v Speaker 1>to lift some names there.

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<v Speaker 3>Yeah, we're seeing that trade recover a little bit, helped

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<v Speaker 3>buy the kind of overall recovery from the Nvidia guidance

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<v Speaker 3>at some of these niche events that they're holding in

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<v Speaker 3>the AI space. So just like the Chinese index, you're

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<v Speaker 3>seeing a lot of the aipicks and shovels trades pick

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<v Speaker 3>up back in Japan after very sharp downturn. Names like

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<v Speaker 3>Ibiden for example, or Renaissance, these names have finally recovered.

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<v Speaker 3>And Fujikura, which happens to be in the same space

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<v Speaker 3>as the Chinese optical names, is up seven nine percent.

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<v Speaker 3>And we also have Kians, which is on the passive

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<v Speaker 3>components side, up to zeo point four percent.

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<v Speaker 4>Okay, there's also obviously a massive story in the market

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<v Speaker 4>is because of the combined US Japanese intervention in the

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<v Speaker 4>end market and the kind of comments from Scott Besst

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<v Speaker 4>on social media which are really interesting. All of this

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<v Speaker 4>are made a Japanese tenure government bond auction that saw

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<v Speaker 4>the weakest demands. It's May twenty twenty five. What does

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<v Speaker 4>all of this mean for the Bank of Japan and

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<v Speaker 4>for central bank tightening?

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<v Speaker 3>Yeah, for now. On the FX side, the US and

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<v Speaker 3>Japanese unusually well aligned. The US wants to help out

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<v Speaker 3>so that the Japanese don't end up selling some treasuries

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<v Speaker 3>to fund their intervention on their own. And you can

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<v Speaker 3>see how kind of tentative the thirty year US treasuries

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<v Speaker 3>are at the moment anyway, So that's quite well done

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<v Speaker 3>by the US. On the Japanese side, they do need

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<v Speaker 3>a little bit more legitimacy to help them strengthen the

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<v Speaker 3>end because they have not that many bullets left in

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<v Speaker 3>intervention until they come off with free floating currency mechanism.

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<v Speaker 3>So you know, both sides coming together when it matters.

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<v Speaker 3>But on the BOG front, a very interesting question to answer,

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<v Speaker 3>which is is the economy running hot enough to justify

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<v Speaker 3>an intervention and a rate hike? And there's a lot

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<v Speaker 3>of debate around that because Japan's economy has just picked

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<v Speaker 3>itself off off the flow and the currency is weakness

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<v Speaker 3>has been a big part of Japan's booming exports, So

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<v Speaker 3>you've seen that in the stock market. Exporters are really

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<v Speaker 3>struggling unless they AI related, and there's a lot of

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<v Speaker 3>doubt whether Japan can continue to grow without a weekend

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<v Speaker 3>and how much the BOG really wants to go with that,

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<v Speaker 3>the m life strategists and now internal b economists have

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<v Speaker 3>been very strident, basically saying that without hikes there is

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<v Speaker 3>no legitimacy to the intervention effort.

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

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