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 Hepker, and
Speaker 1: we're joined by our equity supporter Winnie Sue for more.
Speaker 1: Let's start with optical shares in China and Japan reacting
Speaker 1: to possible new US roles to ban Chinese components from
Speaker 1: data centers.
Speaker 3: Yeah, that one is a very interesting one because we're
Speaker 3: seeing really these stocks in the region moving as well
Speaker 3: as some of these related stocks overnight moving elsewhere as well. Now,
Speaker 3: what we've learned from well the report is that the
Speaker 3: US is drafting this ban on imports of these Chinese
Speaker 3: data centers components to protect US data center infrastructure, because
Speaker 3: they are saying that this is to prevent Chinese firms
Speaker 3: from potentially installing these malware or stealing data from the
Speaker 3: data centers in the US. Now you're seeing the Chinese manufacturers,
Speaker 3: the likes of jointing in a light and I ope
Speaker 3: to link falling on that front. And remember the interesting
Speaker 3: thing is that these two names or some of these
Speaker 3: major Chinese companies actually account for about half of the
Speaker 3: global market share for the optical transceivers. And that's why
Speaker 3: we're also hearing from strategists that this is actually most
Speaker 3: likely just a negotiation tactic from the US ahead of
Speaker 3: the President Trump's meeting with China's shi and just because
Speaker 3: how much the US relies on these Chinese manufacturers. And interestingly,
Speaker 3: we are seeing the competitors, the likes of Fujikura, for example,
Speaker 3: in Japan, are rising on that front.
Speaker 4: Yeah, so it's all of the jost link between the
Speaker 4: US and China when it comes to AI. On the
Speaker 4: flip side, some companies are benefiting from the news that
Speaker 4: the US might not subject Chinese open weight AI models
Speaker 4: to US government testing.
Speaker 3: Yeah, exactly. That one was also in a very interesting
Speaker 3: development when we heard from the White House saying that
Speaker 3: these open weighted models that have been developed by the
Speaker 3: Chinese competitors are not subject to or won't be subject
Speaker 3: to the government testings under the new AI safety framework.
Speaker 3: So that is kind of helping the sentiment when it
Speaker 3: comes to these AI models in China. We're seeing the
Speaker 3: likes of Minimax and also Jupou surging out on that front.
Speaker 3: But I think something that's important to highlight is that
Speaker 3: right now there's this really heated debate about how to
Speaker 3: handle these Chinese Chinese open weight AI models, especially after
Speaker 3: how they were able to show that their capabilities are
Speaker 3: really going beyond what strategists initially thought about. When you
Speaker 3: think about how just this week we had that updated
Speaker 3: new model from Ali Baba's three point eight Max that
Speaker 3: is said to be able to rival the likes of
Speaker 3: Anthropics Fable, and also we had Deep six new version
Speaker 3: that is also just second to communicate three now with
Speaker 3: Mini Max. They also had that AI video model that's
Speaker 3: a new version, saying that they only require cost of
Speaker 3: about half of what their peers require. So you can
Speaker 3: see that with all these new models coming up and
Speaker 3: how they require less cost, it's really shifting the overall
Speaker 3: landscape that we see when it comes to the AI
Speaker 3: development globally. Yeah.
Speaker 1: Indeed, and just briefly then on sk Hihene's shares rising today.
Speaker 3: Yeah, very interesting. It's actually also outperforming Samsung Electronics. And
Speaker 3: the difference here is that there are some expectations that
Speaker 3: the company will be unveiling some buybacks in more shareholder
Speaker 3: return very soon because we had this standard twenty five
Speaker 3: day quiet period for sk high next that's ending, that
Speaker 3: was ending yesterday, and that is coming after they had
Speaker 3: their adr shares back in July. So with that overhang lifted,
Speaker 3: investors are expecting the company to roll out more of
Speaker 3: these announcements. And remember back in July when they had
Speaker 3: their earnings called, investors were pretty disappointed that there was
Speaker 3: a lack of clarity when it comes to the shareholder return.
Speaker 3: That's why stocks fail so much, and that is why
Speaker 3: there is a bit more optimism this time around in
Speaker 3: terms of the timing.
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