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: Taking some stocks on the move today in Asia. I'm
Speaker 3: Caroline HEPCA JOHNI US now as Bloomberg's market supporter Anthony Stephens.
Speaker 3: Good to speak to Anthony. It looks like the first
Speaker 3: signs of dispersion in the tech trade in career, even
Speaker 3: as we're seeing the cosp actually with a big leg
Speaker 3: lower again today.
Speaker 1: Yeah, and that's led by the market heavywet so Samsung
Speaker 1: and Henix are down sharply here on the memory trade,
Speaker 1: Bari in mind, Samsung just had results, they were excellent,
Speaker 1: and then the stock proceeded to get clovered. And that
Speaker 1: shows you the kind of a depth of positioning on
Speaker 1: the memory trade which is getting challenged here now as
Speaker 1: the you know, the the forward looking estimates of AI
Speaker 1: spen is getting challenged. So on the other side of that,
Speaker 1: you have a big laggart LG Electronics, which beat on
Speaker 1: earnings and is getting rewarded. That's our four percent kind
Speaker 1: of stemming some of the slide in the cospy. But
Speaker 1: the COSPY is so heavily weighted to Samsung and Heiniz
Speaker 1: at around forty percent of the index between the two
Speaker 1: of them. If they fall, market can't go anyway. And
Speaker 1: what is really interesting about today is where the technicals
Speaker 1: are kind of meeting the fundamentals. The COSPY is very vulnerable,
Speaker 1: having broken eight thousand, it's below it's fifty day moving average,
Speaker 1: and it's traded through yesterday's limit down halt level, so
Speaker 1: things are quite vulnerable here. Foreigners are embarking on an
Speaker 1: epic selling spree twelve days in a row and at
Speaker 1: one point two over one hundred billion dollars already.
Speaker 3: Wow. Yeah, that is quite some move, isn't it, given
Speaker 3: how much we've seen South Korea, Taiwan and other markets
Speaker 3: again over the course of this year and sort of
Speaker 3: overtake a lot of the European markets. How's the Hang
Speaker 3: Seng Tech Index faring given Chinese AI play.
Speaker 1: Yes, So Chinese ai has been the other shoe of
Speaker 1: the foot on the AI trade. Right. So, the USAI
Speaker 1: ecosystem has been rallying very strongly in the first half,
Speaker 1: and as you mentioned, koreenta On were huge beneficiaries of that.
Speaker 1: Up around fifty percent. You know, still year to date,
Speaker 1: Hong Kong was the other side, and recently the Chinese
Speaker 1: internet spaces started to innovate on the technological side, just
Speaker 1: as it is a beneficiary on the floor rotation side.
Speaker 1: So the new models from ten Cent and Mathoon have
Speaker 1: been very strong, and they've also started to show discipline
Speaker 1: on the cost side. So for example, Ali Baba is
Speaker 1: tying up with Lazada, so Alibaba is having one of
Speaker 1: its biggest moves in since twenty twenty five. It's up
Speaker 1: eleven percent. Ten Cent has been strong for days on
Speaker 1: end and is up again, and h steck is up.
Speaker 1: The Hong Kong Index is up four percent and h
Speaker 1: Steck is leading. This is a huge dispersion with COSTPI,
Speaker 1: so that if you're talking about at the heights today,
Speaker 1: the dispersion was ten percent on the tech trade. So
Speaker 1: whether the investors will chase this dispersion further or it
Speaker 1: just shakes Peaple out of equities altogether remains to be seen.
Speaker 3: One cloud though, roots reporting that China might restrict access
Speaker 3: to the most advanced AI models. The US and China
Speaker 3: maybe following down the same path here.
Speaker 1: So speaking to traders, what's interesting is the reaction function
Speaker 1: to that news. People are surprised that China thinks that
Speaker 1: its models are good enough to get from people in
Speaker 1: the first place, So that has been actually taken really positively.
Speaker 1: One of the names that is in that kind of
Speaker 1: consultation Jupu two P five one three h K that's
Speaker 1: up eighteen percent today after its lockup expired. So normally
Speaker 1: when a huge lockup expires, that's pretty negative for the stock.
Speaker 1: But you had the holders of the stock come out
Speaker 1: and say they would hold their lockup shares, and then
Speaker 1: you had this reaction to the Chinese headline where it's
Speaker 1: got this one company up very strongly, and that's seen
Speaker 1: as a bellweather for China's AI ecosystem overall.
Speaker 3: Yeah, apparently according to that I reported, it was the
Speaker 3: Chinese Commerce Ministry speaking to Ali Baba, Byte Dance and.
Speaker 2: Z dot Ai.
Speaker 3: That's yeah, exactly, yeah, jope exactly. In terms of oil price,
Speaker 3: it's just a quick thought on that os is rising.
Speaker 3: Does that have an impact on stocks? Obviously this revocation
Speaker 3: of the waiver allowing new sales of Iranian oil, that
Speaker 3: does have an impact, doesn't it.
Speaker 1: Look in terms of the oil impact, it's more putting
Speaker 1: extra macro pressure on what is already a teetering trade
Speaker 1: as far as the semiconductor space is concerned. So semiconductor
Speaker 1: and AI investment in the US is by nature a
Speaker 1: long duration trade. People are borrowing money, like Amazon, for example,
Speaker 1: to build out data centers far into the future, and
Speaker 1: you know they need rates very hardly anchored for that.
Speaker 1: Any flare up in inflation expectations from oil pressures that
Speaker 1: at the margin. But for now, in terms of Asian markets,
Speaker 1: no one is really talking about oil as a primary driver.
Speaker 1: We're still in the tech driving.
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