WEBVTT - MediaTek Rises, Innovent Jumps, Woodside Falls

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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 Hepker, and

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<v Speaker 1>we're joined by our markets reporter, Anthony Stevens. Anthony, let's start,

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<v Speaker 1>perhaps almost every day, it seems, with technology. Custom chips,

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<v Speaker 1>a big focus with the OpenAI build-out. How's that playing

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<v Speaker 1>out in the Asian session today?

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<v Speaker 3>That's a very interesting combination going into Nvidia earnings. You

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<v Speaker 3>have one of Nvidia's biggest customers coming out with competitive chips. Now,

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<v Speaker 3>OpenAI's chips are supposedly addressing the inference problems around LLM

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<v Speaker 3>models like it has itself. So it's also solving problems

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<v Speaker 3>for other LLMs. And why that's interesting is this custom

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<v Speaker 3>chip trend continues to accelerate even as Nvidia's own chips

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<v Speaker 3>are sold out. So At the moment, there is pretty

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<v Speaker 3>much insatiable demand for anything regarding computing power. But how

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<v Speaker 3>far that runway extends is a big question in the

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<v Speaker 3>Nvidia earnings. But for now, that's enough for investors in

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<v Speaker 3>Asia with the runway in Taiwan and Korea very clear.

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<v Speaker 3>You have the likes of MediaTek up 5.6%, Lagan is up,

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<v Speaker 3>limit up, and Samsung and Hynix continue their two-day rally.

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<v Speaker 3>They started off very weak yesterday and they've rallied around 6%

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<v Speaker 3>in a straight line.

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<v Speaker 4>Interesting. Pharmaceutical shares are also on the rise. What's driving that?

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<v Speaker 3>So this speaks to like a new dawn in terms

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<v Speaker 3>of drug development across a few technologies that's been brewing

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<v Speaker 3>for a while. So you have had that mRNA technology

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<v Speaker 3>that came out during COVID now finally being put to

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<v Speaker 3>use for other things, most notably skin cancer in the

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<v Speaker 3>case of Moderna. Moderna was up 14% overnight and that's

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<v Speaker 3>pretty much got all of the mRNA players in Asia

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<v Speaker 3>flying Most notably, CanSino, who again made the vaccines during COVID,

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<v Speaker 3>that's up 23% to start. And there have also been

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<v Speaker 3>some pretty strong earnings out of the Chinese pharma names

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<v Speaker 3>like Insino BioPharm and Innovant, which are being buoyed by

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<v Speaker 3>the Chinese success in the oncology space. Innovant, for example,

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<v Speaker 3>is up 9% today.

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<v Speaker 1>Meanwhile, the drop in oil prices is having an effect

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<v Speaker 1>on energy shares across Asia.

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<v Speaker 3>It has been interesting, right? As oil tracked higher, the

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<v Speaker 3>oil shares did keep up because margins on fuel products

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<v Speaker 3>are quite tight at the moment. The production capacity is

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<v Speaker 3>quite tight. So people did pile in to these oil names.

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<v Speaker 3>And now this shock kind of drop in oil on

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<v Speaker 3>the talks of Pakistan and Oman mediating a ceasefire. it

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<v Speaker 3>has really rocked positioning. You're seeing Woodside down almost 4%.

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<v Speaker 3>Ineos in Japan is underperforming the market sharply, down 2%.

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<v Speaker 3>And Eska Innovation is drastically underperforming the Korean bull market.

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<v Speaker 3>It's down 9%.

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<v Speaker 2>Yeah.

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<v Speaker 4>Very interesting isn't it in terms of all markets i

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<v Speaker 4>mean i'm just kind of going back to the pharmaceutical

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<v Speaker 4>story though that you mentioned um a moderna share price

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<v Speaker 4>last week spiking that that huge number 177 i mean

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<v Speaker 4>it was extraordinary wasn't it the kind of idea of

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<v Speaker 4>personalized vaccines and this in that late stage trial being

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<v Speaker 4>able to maybe uh reduce the recurrence of melanoma of

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<v Speaker 4>this the kind of deadliest skin cancer i mean yeah

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<v Speaker 4>it's hugely significant isn't it um Briefly, Antony, what do

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<v Speaker 4>you think of the Besant story about bond buybacks? I mean,

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<v Speaker 4>this is the big debate in bond markets, isn't it?

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<v Speaker 4>How much of a put is there in markets and

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<v Speaker 4>the size and scale of the US Treasury market? What

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<v Speaker 4>do you think of it?

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<v Speaker 3>There are two separate debates going on here. The first

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<v Speaker 3>debate is how long can you pull this off for?

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<v Speaker 3>How sustainable is it versus the pure fundamentals of the

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<v Speaker 3>US economy? And on that front, you had Stanley Druckenmiller

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<v Speaker 3>saying that it's not long-term feasible and so many others, right,

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<v Speaker 3>who point to the fact that the structural deficit in

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<v Speaker 3>the US is the big problem pushing on yields alongside

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<v Speaker 3>the kind of deluge of AI debt that's coming as well.

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<v Speaker 3>But on the short-term side of things, he is leaning

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<v Speaker 3>into a very crowded trade. So he may be trying

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<v Speaker 3>to just trigger a short squeeze, right? You have very

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<v Speaker 3>extended positioning in ultra long bond futures. You have very

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<v Speaker 3>extended positioning in options on the same trade. While yields

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<v Speaker 3>are quite high and you do have real money that

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<v Speaker 3>needs to be put to work at those yield levels.

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<v Speaker 3>So he may just be needing to trigger a short

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<v Speaker 3>squeeze to get what he wants while the situation with

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<v Speaker 3>Iran is being worked out. So in terms of timing,

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<v Speaker 3>it's very kind of a nuanced thing for people putting

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<v Speaker 3>on this trade. You can put it on structurally, but

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<v Speaker 3>you need to have the risk tolerance to let it

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<v Speaker 3>run for a little while.

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

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