Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The Stock Movers podcast, 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 Kral with Caroline Hebker, and
Speaker 1: joining us now is Boomberg Equities reporter Winnie Sue Winnie.
Speaker 1: Good morning. Let's start with the results then from TSMC.
Speaker 1: What have we learned?
Speaker 3: Yeah, a pretty exciting set of results, so overall, quite positive,
Speaker 3: lots of beats. We have net income here at twenty
Speaker 3: two billion US dollars for the June quarter and that
Speaker 3: is above the analyst average by about thirteen percent, so
Speaker 3: quite impressive. And then with that you also have gross
Speaker 3: margins coming at sixty seven point seven percent versus a
Speaker 3: estimate of sixty seven point one percent. But also last
Speaker 3: year in June we are at fifty eight point six percent,
Speaker 3: so you can see that those margin numbers are also
Speaker 3: looking pretty pretty strong. So with the set of data,
Speaker 3: it's really showing you how you know, we talked about
Speaker 3: the June revenue growing at thirty six percent earlier this week,
Speaker 3: so it all together shows how the demand really remains
Speaker 3: strong and the pricing power of TSMC also remains quite solid.
Speaker 3: We did see stocks rising about one percent until the
Speaker 3: closing until the numbers came through, so the expectations have
Speaker 3: somewhat been built in into the numbers and given how
Speaker 3: we have really seen, for example, the really good results
Speaker 3: from Samsung nineteenfold revenue sorry profit jump earlier a few
Speaker 3: sessions back as well, but that really didn't in press
Speaker 3: investors as well. So we will have to see how
Speaker 3: investors take this set of positive results if that is
Speaker 3: actually enough to boost their optimism or not.
Speaker 4: Yeah, okay, so that's TSMC in terms of their results.
Speaker 4: South Korea looking to rain and leverage ETFs tied to
Speaker 4: some sing An skh Inex it seems, and the overall
Speaker 4: market is down together today again, lots of volatility. What
Speaker 4: more do we know?
Speaker 3: Yeah, so we are expecting that to come this afternoon,
Speaker 3: and the measures really is to kind of have the
Speaker 3: market a bit more stable after so much volatility being
Speaker 3: driven by these leveraged ETFs that are tied to the
Speaker 3: likes of sk high Inex and Samsung. So these ETFs
Speaker 3: have really been driving the volatility up and we're talking
Speaker 3: about the thirty day volatility of cos being now at
Speaker 3: all time high, and the theory of that is that
Speaker 3: these ETFs they basically multiply daily moves in the underlying
Speaker 3: stocks by two times, and they would need these daily
Speaker 3: rebalancing flow at the end of the day to maintain
Speaker 3: the promised return ratios. So the measures potentially as far
Speaker 3: as we have learned, can be including increasing the minimum
Speaker 3: deposit requirement to invest in these kinds of leverage products
Speaker 3: or even spreading out this rebalancing activity throughout the session
Speaker 3: so that it doesn't just come at the end of
Speaker 3: the day. So we're really seeing these authorities in South
Speaker 3: Korea to come into the market for some of these
Speaker 3: measures just because they've also been blamed heavily because of
Speaker 3: such volatility in the market.
Speaker 1: And just briefly then, when we're watching shares An Ali
Speaker 1: Baba and by Do getting a boost from Apple which
Speaker 1: got approval for its AI products in China.
Speaker 3: Yeah, that is very exciting because they have been waiting
Speaker 3: for the past two years for that approval and it
Speaker 3: is approval for its Apple Intelligence AI feature to be
Speaker 3: used in China, and that includes tools for writing for
Speaker 3: generating images summarizing notifications. Even so, it is now in
Speaker 3: collaboration with the likes of Ali Baba and by Do
Speaker 3: for the Chinese version, and that's why you are seeing
Speaker 3: these two stocks specifically rising today. And the significance of
Speaker 3: this really is first, it basically gives Apple more access
Speaker 3: to this big population in China so that it can
Speaker 3: test its AI features and also to close that gap
Speaker 3: with some of its local competitors as well. Now it
Speaker 3: also goes to show how Beijing is becoming more supportive
Speaker 3: of its local technology companies after years of regulatory scruptinating
Speaker 3: as well.
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