WEBVTT - SK Hynix Up, Tencent Lower, Alibaba Dips 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, 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 3>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move in Asia. I'm Caroline Hepga and joining

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<v Speaker 3>me from Hong Kong. It'spinberg's market supporter, Anthony Stevens Antonie.

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<v Speaker 3>Great to speak to you Asia, Taking, as you've put it,

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<v Speaker 3>a glass half full view of the FED decision to

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<v Speaker 3>hold us interest rates steady, which equities are making gains

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<v Speaker 3>and what is the thinking in your part of the world.

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<v Speaker 1>Yeah, the decision that investors face now is which equities

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<v Speaker 1>or which sectors can offset this rise in interest rates

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<v Speaker 1>that may be coming in the short term. And they've

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<v Speaker 1>decided upon tech, specifically tech around the AI semiconductor space

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<v Speaker 1>and the AI semiconductor supply chain, and those names are

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<v Speaker 1>moving very sharply higher in a Korea and Japan in particular,

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<v Speaker 1>you have Heinex up seven percent, Murata up over ten percent,

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<v Speaker 1>and a whole range of these specialty chemical makers and

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<v Speaker 1>supply chain names that are up five to eight percent

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<v Speaker 1>in Taiwan, Japan and Korea. China is a bit more

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<v Speaker 1>mixed on tech. But even in China, you see the

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<v Speaker 1>semiconductor space up three to five percent.

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<v Speaker 3>Chinese hyperscalers though following American well, the American Frenomi is lower.

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<v Speaker 1>Yeah, that's you know, that's been a theme for a

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<v Speaker 1>while now, but the FED has kind of made that

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<v Speaker 1>a lot worse. So hyperscaler capex will pay off only

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<v Speaker 1>in the future as they invest today to sell Uai tomorrow,

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<v Speaker 1>but the FED rate decision makes it a bit harder.

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<v Speaker 1>And you saw the mag seven sell off in the US,

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<v Speaker 1>and now you're seeing names like ten Cent and Baba

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<v Speaker 1>Alibaba down around two to three percent, leading the HS

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<v Speaker 1>tech lower. So that dichotomy in China continues to be

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<v Speaker 1>quite hard, between software being down and hardware being up.

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<v Speaker 3>Yeah. Meanwhile, there's one kind of industry specific story that

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<v Speaker 3>I wanted to talk about. This is China's rules around

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<v Speaker 3>food delivery. There's been actually a number of statements around

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<v Speaker 3>food delivery companies or actions around it. They've taken a

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<v Speaker 3>bite out of Ali Baba's shares. Just tell us what

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<v Speaker 3>these draft rules are all about.

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<v Speaker 1>So the government continues to be concerned about destructive competition

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<v Speaker 1>or involution as the Chinese call it, which is basically

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<v Speaker 1>people throwing money out the window to corner the food

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<v Speaker 1>delivery market, and Methuan is the competitor to Ali Baba,

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<v Speaker 1>and both these companies have dug a deep hole in

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<v Speaker 1>their balance sheet to corner this market. Ali Baba also

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<v Speaker 1>has to contend with the broader weakness of the Chinese consumer,

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<v Speaker 1>So Chinese consumer retail sales for very weak on the

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<v Speaker 1>data dump yesterday, and that has been a long term trend. Also,

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<v Speaker 1>Bloomberg is reporting the China consumption consumer debt is denting

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<v Speaker 1>China consumption. These macro factors are constraining Ali Baba's ability

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<v Speaker 1>to win this food delivery war and also what returns

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<v Speaker 1>they will get even if they do win it. So

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<v Speaker 1>the government is very concerned that it's it's potential. AI

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<v Speaker 1>giants are busy spending money on food delivery, which is

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<v Speaker 1>obviously not a national security item, instead of spending money

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<v Speaker 1>on AI like the US.

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

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