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 1: Let's take a look at some stocks on the move
Speaker 1: today in Asia. I'm Stephen Carroll with Caroline Hepka Antwerth
Speaker 1: joined Vire Markets reporter Anthony Stevens. Anthony. A good day
Speaker 1: for banks around ASA then benefiting from the flows from taxtocks.
Speaker 3: Yeah, they got off to a pretty good start even
Speaker 3: though tech has bounced intraday in the session. They're holding
Speaker 3: on today, gains led by the Japanese banks Mitsubishi UFJ
Speaker 3: and Sumito moment Misspishi SMFG. It's quite interesting to see
Speaker 3: the banks and tech trade in opposite directions in Japan
Speaker 3: pretty conclusively. People want to stay in the market, so
Speaker 3: they're just rotating from one to the other to play
Speaker 3: the Japanese kind of earnings growth and economic momentum. The
Speaker 3: story is very similar in Taiwan, with the banks benefiting
Speaker 3: from a massive wealth search from the tech boom there.
Speaker 3: But the tech boom itself is growing quite long in
Speaker 3: the tooth and you're seeing some pretty big drawdowns, so
Speaker 3: not much news on some days, and whenever that happens,
Speaker 3: you see the banks benefit.
Speaker 4: Okay, that's interesting. China's consumer slowdown, though, is hitting some
Speaker 4: big names in the Hong Kong market.
Speaker 3: Yeah, this earnings roundup has really highlighted the weakness of
Speaker 3: the Chinese consumer. It's whether you're talking about the consumer
Speaker 3: Internet space or the PopMart or what have you. And
Speaker 3: a couple of the names that I've got hit today
Speaker 3: are in the EV space. You have choupanging down around
Speaker 3: eight percent. Neo as well. This kind of space has
Speaker 3: really struggled from the over competition in the Chinese EV space.
Speaker 3: It's good for the country, but it's bad for the
Speaker 3: sector in terms of profitability.
Speaker 1: Meanwhile, China's hard engineering prices is showing up in earnings
Speaker 1: as well. Tell us more.
Speaker 3: Yeah, two of the big mega trends in China have
Speaker 3: been the biotech boom in the recent times, and that's
Speaker 3: coming through on earnings. You're seeing pretty decent earnings from
Speaker 3: Wushi x DC, which is kind of a generics maker.
Speaker 3: They had a blowout earning Scott it was up around
Speaker 3: ten percent. And on the real hardware engineering side, you
Speaker 3: have a young se Optical also seeing some huge moves
Speaker 3: and Kingboard Laminetes beating on earnings massively. So the chairman
Speaker 3: of Kingboard Laminets in his guidance said that you know,
Speaker 3: this quarter is bigger than last year put together. And
Speaker 3: that's one of those companies with yangsh Opticle that is
Speaker 3: really benefiting from China's hard engineering. They have an integrated
Speaker 3: supply chain to make circuit boards down to the electric
Speaker 3: cloth and the component wires. So this is something that
Speaker 3: is very China specific. Not even Taiwan has that level
Speaker 3: of vertical integration, and they're really benefiting now as everything
Speaker 3: AI increases in price.
Speaker 4: Okay, a thought on the debasement trade for US. I
Speaker 4: know you've been writing about this this morning and today
Speaker 4: and thinking about whether this will help the euro the
Speaker 4: kind of concerns that there are around dollar dominance, dollars
Speaker 4: strain for maybe a return to sort of the weakness
Speaker 4: that we saw last year.
Speaker 3: Yeah, the euro is probably the last leg of the
Speaker 3: short dollar trade, right, so it's the one that doesn't
Speaker 3: have that much of a carrier difference. You know, the
Speaker 3: Euro is very dispersed in terms of economic outcomes, but
Speaker 3: now things are turning around on the Euro leg of things.
Speaker 3: So the ECB, it is important to remember, is very
Speaker 3: fiscally prudent, monetarily prudent, right, and they wanted to raise
Speaker 3: rates anyway in response to the Iran oil crisis. So
Speaker 3: you have a hawkish ECB into a FED and FOMC
Speaker 3: that is kind of playing weight and see and trying
Speaker 3: to control you. So you have that dynamic in play.
Speaker 3: And now the data in Europe is starting to change, right.
Speaker 3: So Germany's data is much better in terms of the
Speaker 3: industrial production, and there's signs from a sector basis that
Speaker 3: Europe's heavy industrials are really starting to play a role
Speaker 3: in the energy and infrastructure build out around the AI boom.
Speaker 3: So it's kind of Europe's time in the sun to
Speaker 3: get paid on the boom after the semiconductors in Asia,
Speaker 3: and that probably raises the bar to any further European weakness.
Speaker 3: Now Europe against everything else is a very different story
Speaker 3: because there's a carry trade on in really big size
Speaker 3: and that is helping out the G ten carry currencies
Speaker 3: as well as the emerging market effects.
Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with
Speaker 2: us throughout the day for the latest roundup of companies
Speaker 2: making news on Wall Street and for the latest market
Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube,
Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with
Speaker 2: the Bloomberg Business app.