WEBVTT - MUFJ Rises, Xpeng Drops, WuXi XDC Jumps

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

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<v Speaker 1>today in Asia. I'm Stephen Carroll with Caroline Hepka Antwerth

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<v Speaker 1>joined Vire Markets reporter Anthony Stevens. Anthony. A good day

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<v Speaker 1>for banks around ASA then benefiting from the flows from taxtocks.

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<v Speaker 3>Yeah, they got off to a pretty good start even

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<v Speaker 3>though tech has bounced intraday in the session. They're holding

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<v Speaker 3>on today, gains led by the Japanese banks Mitsubishi UFJ

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<v Speaker 3>and Sumito moment Misspishi SMFG. It's quite interesting to see

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<v Speaker 3>the banks and tech trade in opposite directions in Japan

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<v Speaker 3>pretty conclusively. People want to stay in the market, so

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<v Speaker 3>they're just rotating from one to the other to play

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<v Speaker 3>the Japanese kind of earnings growth and economic momentum. The

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<v Speaker 3>story is very similar in Taiwan, with the banks benefiting

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<v Speaker 3>from a massive wealth search from the tech boom there.

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<v Speaker 3>But the tech boom itself is growing quite long in

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<v Speaker 3>the tooth and you're seeing some pretty big drawdowns, so

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<v Speaker 3>not much news on some days, and whenever that happens,

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<v Speaker 3>you see the banks benefit.

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<v Speaker 4>Okay, that's interesting. China's consumer slowdown, though, is hitting some

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<v Speaker 4>big names in the Hong Kong market.

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<v Speaker 3>Yeah, this earnings roundup has really highlighted the weakness of

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<v Speaker 3>the Chinese consumer. It's whether you're talking about the consumer

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<v Speaker 3>Internet space or the PopMart or what have you. And

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<v Speaker 3>a couple of the names that I've got hit today

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<v Speaker 3>are in the EV space. You have choupanging down around

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<v Speaker 3>eight percent. Neo as well. This kind of space has

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<v Speaker 3>really struggled from the over competition in the Chinese EV space.

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<v Speaker 3>It's good for the country, but it's bad for the

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<v Speaker 3>sector in terms of profitability.

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<v Speaker 1>Meanwhile, China's hard engineering prices is showing up in earnings

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<v Speaker 1>as well. Tell us more.

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<v Speaker 3>Yeah, two of the big mega trends in China have

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<v Speaker 3>been the biotech boom in the recent times, and that's

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<v Speaker 3>coming through on earnings. You're seeing pretty decent earnings from

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<v Speaker 3>Wushi x DC, which is kind of a generics maker.

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<v Speaker 3>They had a blowout earning Scott it was up around

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<v Speaker 3>ten percent. And on the real hardware engineering side, you

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<v Speaker 3>have a young se Optical also seeing some huge moves

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<v Speaker 3>and Kingboard Laminetes beating on earnings massively. So the chairman

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<v Speaker 3>of Kingboard Laminets in his guidance said that you know,

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<v Speaker 3>this quarter is bigger than last year put together. And

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<v Speaker 3>that's one of those companies with yangsh Opticle that is

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<v Speaker 3>really benefiting from China's hard engineering. They have an integrated

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<v Speaker 3>supply chain to make circuit boards down to the electric

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<v Speaker 3>cloth and the component wires. So this is something that

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<v Speaker 3>is very China specific. Not even Taiwan has that level

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<v Speaker 3>of vertical integration, and they're really benefiting now as everything

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<v Speaker 3>AI increases in price.

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<v Speaker 4>Okay, a thought on the debasement trade for US. I

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<v Speaker 4>know you've been writing about this this morning and today

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<v Speaker 4>and thinking about whether this will help the euro the

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<v Speaker 4>kind of concerns that there are around dollar dominance, dollars

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<v Speaker 4>strain for maybe a return to sort of the weakness

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<v Speaker 4>that we saw last year.

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<v Speaker 3>Yeah, the euro is probably the last leg of the

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<v Speaker 3>short dollar trade, right, so it's the one that doesn't

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<v Speaker 3>have that much of a carrier difference. You know, the

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<v Speaker 3>Euro is very dispersed in terms of economic outcomes, but

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<v Speaker 3>now things are turning around on the Euro leg of things.

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<v Speaker 3>So the ECB, it is important to remember, is very

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<v Speaker 3>fiscally prudent, monetarily prudent, right, and they wanted to raise

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<v Speaker 3>rates anyway in response to the Iran oil crisis. So

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<v Speaker 3>you have a hawkish ECB into a FED and FOMC

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<v Speaker 3>that is kind of playing weight and see and trying

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<v Speaker 3>to control you. So you have that dynamic in play.

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<v Speaker 3>And now the data in Europe is starting to change, right.

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<v Speaker 3>So Germany's data is much better in terms of the

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<v Speaker 3>industrial production, and there's signs from a sector basis that

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<v Speaker 3>Europe's heavy industrials are really starting to play a role

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<v Speaker 3>in the energy and infrastructure build out around the AI boom.

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<v Speaker 3>So it's kind of Europe's time in the sun to

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<v Speaker 3>get paid on the boom after the semiconductors in Asia,

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<v Speaker 3>and that probably raises the bar to any further European weakness.

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<v Speaker 3>Now Europe against everything else is a very different story

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<v Speaker 3>because there's a carry trade on in really big size

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<v Speaker 3>and that is helping out the G ten carry currencies

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<v Speaker 3>as well as the emerging market effects.

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

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<v Speaker 2>us throughout the day for the latest roundup of companies

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