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: Let's take a look at some stocks on the move
Speaker 3: today in Asia. I'm Stephen Carroll with Caroline Hebcker, and
Speaker 3: we're joined by Bloomberg Equities reporter Winnie Sue when he
Speaker 3: let's start them with TSMC shares lower today despite yesterday's
Speaker 3: upbeat results.
Speaker 1: Yeah, exactly, down seven point three percent, and that is
Speaker 1: the worst that it has seen in about a year now.
Speaker 3: The results.
Speaker 1: When we talked about earnings yesterday, it was pretty positive.
Speaker 1: But it really is the forward looking part of it
Speaker 1: that has been raising a bit of concerns, especially around
Speaker 1: its spending. So kpex coming at sixty to sixty four
Speaker 1: billion US dollars for twenty twenty six, that is at
Speaker 1: least four billion US dollars higher than the previous forecast.
Speaker 1: The question is will there be enough demand to really
Speaker 1: be able to justify these spending and if this is
Speaker 1: really running a little bit faster ahead of itself even
Speaker 1: and another concern that we're also hearing is actually with
Speaker 1: the profit margin, a growth margin at sixty seven point
Speaker 1: seven percent. That is meeting average estimate, but still coming
Speaker 1: below the street's highest estimate. So you really see that
Speaker 1: investors are very difficult to please these days, even when
Speaker 1: earnings are quite on the positive side. Now this is
Speaker 1: dragging down the broader tie X index down six point
Speaker 1: five percent, and we have the Taiwanese gauge entering a
Speaker 1: technical correction today just because TSMC accounts for forty percent
Speaker 1: of the overallweting of the Taiwanese benchmark.
Speaker 4: Okay, so that after TSMC and what's been happening this
Speaker 4: morning with those stocks slumping, there's also been a big
Speaker 4: big decline in of Kiyoshia Kyokshia. What is driving that?
Speaker 1: Yeah, exactly, it's just this very broad chip sell off
Speaker 1: that we are seeing. Honestly, you would have expected today
Speaker 1: to be a quieter day when the South Korea market
Speaker 1: is on holiday, but in fact we are seeing the
Speaker 1: pain being felt by the other countries. And you know,
Speaker 1: Kiyokxia is in fact a flesh memory maker in Japan,
Speaker 1: and it saw shares plunging sixteen percent today on these
Speaker 1: concerned around the AI spending. Now, another couple factors here
Speaker 1: is First of all, it has risen at one point
Speaker 1: six hundred percent this year and on that AI boom,
Speaker 1: and still it's up about four hundred percent at this point,
Speaker 1: so a bit of profit taking still justifies it. But
Speaker 1: remember the market cap is in fact seeing you know,
Speaker 1: it down about fifty percent in just the past month,
Speaker 1: so you can see that investors are getting quite sensitive
Speaker 1: where this AI trade is really going. And we when
Speaker 1: we look at another factor, we did also hear that Bane,
Speaker 1: which was a big investor in Kioxia, actually also exited recently,
Speaker 1: so that might mean that there can be a market
Speaker 1: market peak coming already. So those are some of the
Speaker 1: concerns that we've been hearing. And Kiyoxia was Japan's most
Speaker 1: valuable company as of last month, so things really turn
Speaker 1: around quite quickly this period of time.
Speaker 3: Yeah, it's certainly very interesting one to watch. And away
Speaker 3: from technology, then when he convenience store operator seven and
Speaker 3: I getting a boost from some M and A headlines, Yeah, exactly.
Speaker 1: Finally some good news that we are hearing. So seven
Speaker 1: and I is the world's largest convenience store operator and
Speaker 1: it is buying this Poland's top convenience store operator Zabka Group,
Speaker 1: and that is seeing it to be a tailwind four
Speaker 1: stocks for both companies. So on the seven and I part,
Speaker 1: we are seeing shares of about three point five percent today,
Speaker 1: the top performer on Japan's Topics Index, and investors like
Speaker 1: that because this actually helps seven and I to grow
Speaker 1: its overseas operation and it aligns with that long term
Speaker 1: strategic intention where it really wants to have one hundred
Speaker 1: thousand stores globally for its mid term plan, and it
Speaker 1: has already been acquiring convenience source in North America and Australia.
Speaker 1: So being able to buy this company or to have
Speaker 1: a big stake in the company would help it expand
Speaker 1: in Europe and Poland would then be this seven and
Speaker 1: Night's fourth European market, and so that is really being
Speaker 1: seen as a boost now. On the other hand, when
Speaker 1: it comes to Zapka, it's also positive for it because
Speaker 1: it really helps it to have this long term strategic
Speaker 1: partner to grow further as well.
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