WEBVTT - TSMC Rises, Samsung Dips, Alibaba Up

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers podcast, 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 Kral with Caroline Hebker, and

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<v Speaker 1>joining us now is Boomberg Equities reporter Winnie Sue Winnie.

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<v Speaker 1>Good morning. Let's start with the results then from TSMC.

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<v Speaker 1>What have we learned?

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<v Speaker 3>Yeah, a pretty exciting set of results, so overall, quite positive,

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<v Speaker 3>lots of beats. We have net income here at twenty

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<v Speaker 3>two billion US dollars for the June quarter and that

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<v Speaker 3>is above the analyst average by about thirteen percent, so

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<v Speaker 3>quite impressive. And then with that you also have gross

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<v Speaker 3>margins coming at sixty seven point seven percent versus a

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<v Speaker 3>estimate of sixty seven point one percent. But also last

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<v Speaker 3>year in June we are at fifty eight point six percent,

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<v Speaker 3>so you can see that those margin numbers are also

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<v Speaker 3>looking pretty pretty strong. So with the set of data,

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<v Speaker 3>it's really showing you how you know, we talked about

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<v Speaker 3>the June revenue growing at thirty six percent earlier this week,

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<v Speaker 3>so it all together shows how the demand really remains

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<v Speaker 3>strong and the pricing power of TSMC also remains quite solid.

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<v Speaker 3>We did see stocks rising about one percent until the

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<v Speaker 3>closing until the numbers came through, so the expectations have

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<v Speaker 3>somewhat been built in into the numbers and given how

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<v Speaker 3>we have really seen, for example, the really good results

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<v Speaker 3>from Samsung nineteenfold revenue sorry profit jump earlier a few

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<v Speaker 3>sessions back as well, but that really didn't in press

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<v Speaker 3>investors as well. So we will have to see how

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<v Speaker 3>investors take this set of positive results if that is

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<v Speaker 3>actually enough to boost their optimism or not.

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<v Speaker 4>Yeah, okay, so that's TSMC in terms of their results.

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<v Speaker 4>South Korea looking to rain and leverage ETFs tied to

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<v Speaker 4>some sing An skh Inex it seems, and the overall

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<v Speaker 4>market is down together today again, lots of volatility. What

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<v Speaker 4>more do we know?

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<v Speaker 3>Yeah, so we are expecting that to come this afternoon,

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<v Speaker 3>and the measures really is to kind of have the

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<v Speaker 3>market a bit more stable after so much volatility being

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<v Speaker 3>driven by these leveraged ETFs that are tied to the

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<v Speaker 3>likes of sk high Inex and Samsung. So these ETFs

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<v Speaker 3>have really been driving the volatility up and we're talking

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<v Speaker 3>about the thirty day volatility of cos being now at

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<v Speaker 3>all time high, and the theory of that is that

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<v Speaker 3>these ETFs they basically multiply daily moves in the underlying

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<v Speaker 3>stocks by two times, and they would need these daily

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<v Speaker 3>rebalancing flow at the end of the day to maintain

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<v Speaker 3>the promised return ratios. So the measures potentially as far

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<v Speaker 3>as we have learned, can be including increasing the minimum

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<v Speaker 3>deposit requirement to invest in these kinds of leverage products

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<v Speaker 3>or even spreading out this rebalancing activity throughout the session

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<v Speaker 3>so that it doesn't just come at the end of

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<v Speaker 3>the day. So we're really seeing these authorities in South

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<v Speaker 3>Korea to come into the market for some of these

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<v Speaker 3>measures just because they've also been blamed heavily because of

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<v Speaker 3>such volatility in the market.

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<v Speaker 1>And just briefly then, when we're watching shares An Ali

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<v Speaker 1>Baba and by Do getting a boost from Apple which

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<v Speaker 1>got approval for its AI products in China.

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<v Speaker 3>Yeah, that is very exciting because they have been waiting

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<v Speaker 3>for the past two years for that approval and it

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<v Speaker 3>is approval for its Apple Intelligence AI feature to be

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<v Speaker 3>used in China, and that includes tools for writing for

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<v Speaker 3>generating images summarizing notifications. Even so, it is now in

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<v Speaker 3>collaboration with the likes of Ali Baba and by Do

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<v Speaker 3>for the Chinese version, and that's why you are seeing

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<v Speaker 3>these two stocks specifically rising today. And the significance of

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<v Speaker 3>this really is first, it basically gives Apple more access

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<v Speaker 3>to this big population in China so that it can

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<v Speaker 3>test its AI features and also to close that gap

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<v Speaker 3>with some of its local competitors as well. Now it

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<v Speaker 3>also goes to show how Beijing is becoming more supportive

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<v Speaker 3>of its local technology companies after years of regulatory scruptinating

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<v Speaker 3>as well.

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<v Speaker 2>The Stock Movers podcast Fromloomberg Radio. Check back with us

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