Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the stocks
Speaker 3: on the move in Asia. I'm Caroline Hepga and joining
Speaker 3: me from Hong Kong. It'spinberg's market supporter, Anthony Stevens Antonie.
Speaker 3: Great to speak to you Asia, Taking, as you've put it,
Speaker 3: a glass half full view of the FED decision to
Speaker 3: hold us interest rates steady, which equities are making gains
Speaker 3: and what is the thinking in your part of the world.
Speaker 1: Yeah, the decision that investors face now is which equities
Speaker 1: or which sectors can offset this rise in interest rates
Speaker 1: that may be coming in the short term. And they've
Speaker 1: decided upon tech, specifically tech around the AI semiconductor space
Speaker 1: and the AI semiconductor supply chain, and those names are
Speaker 1: moving very sharply higher in a Korea and Japan in particular,
Speaker 1: you have Heinex up seven percent, Murata up over ten percent,
Speaker 1: and a whole range of these specialty chemical makers and
Speaker 1: supply chain names that are up five to eight percent
Speaker 1: in Taiwan, Japan and Korea. China is a bit more
Speaker 1: mixed on tech. But even in China, you see the
Speaker 1: semiconductor space up three to five percent.
Speaker 3: Chinese hyperscalers though following American well, the American Frenomi is lower.
Speaker 1: Yeah, that's you know, that's been a theme for a
Speaker 1: while now, but the FED has kind of made that
Speaker 1: a lot worse. So hyperscaler capex will pay off only
Speaker 1: in the future as they invest today to sell Uai tomorrow,
Speaker 1: but the FED rate decision makes it a bit harder.
Speaker 1: And you saw the mag seven sell off in the US,
Speaker 1: and now you're seeing names like ten Cent and Baba
Speaker 1: Alibaba down around two to three percent, leading the HS
Speaker 1: tech lower. So that dichotomy in China continues to be
Speaker 1: quite hard, between software being down and hardware being up.
Speaker 3: Yeah. Meanwhile, there's one kind of industry specific story that
Speaker 3: I wanted to talk about. This is China's rules around
Speaker 3: food delivery. There's been actually a number of statements around
Speaker 3: food delivery companies or actions around it. They've taken a
Speaker 3: bite out of Ali Baba's shares. Just tell us what
Speaker 3: these draft rules are all about.
Speaker 1: So the government continues to be concerned about destructive competition
Speaker 1: or involution as the Chinese call it, which is basically
Speaker 1: people throwing money out the window to corner the food
Speaker 1: delivery market, and Methuan is the competitor to Ali Baba,
Speaker 1: and both these companies have dug a deep hole in
Speaker 1: their balance sheet to corner this market. Ali Baba also
Speaker 1: has to contend with the broader weakness of the Chinese consumer,
Speaker 1: So Chinese consumer retail sales for very weak on the
Speaker 1: data dump yesterday, and that has been a long term trend. Also,
Speaker 1: Bloomberg is reporting the China consumption consumer debt is denting
Speaker 1: China consumption. These macro factors are constraining Ali Baba's ability
Speaker 1: to win this food delivery war and also what returns
Speaker 1: they will get even if they do win it. So
Speaker 1: the government is very concerned that it's it's potential. AI
Speaker 1: giants are busy spending money on food delivery, which is
Speaker 1: obviously not a national security item, instead of spending money
Speaker 1: on AI like the US.
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