SK Hynix Rallies, Largan Tumbles, ICBC Dips

0:00Hi, I'm Tom Keane, inviting you to join me for the Bloomberg Surveillance Podcast. It's about making you smarter every business day. I'm Paul Swini, we bring you complete coverage of stocks, bonds, commodities, even crypto, all the information you need to excel in the markets. And I'm Alexis Christofferis, listen to us for essential conversations with the smartest names and economics, finance, investment, and international relations. That's the Bloomberg Surveillance Podcast. Subscribe today on Apple, Spotify, or anywhere you listen. Bloomberg Audio Studios. Podcasts, radio, news. The Stock Movers Report. Your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data. Let's take a look at some stocks on the move today in Asia and Stephen Carroll with Carlin Heppker and were joined by Bloomberg's market supporter Antony Stevens. Antony, good to talk to you. The AI trade is back. Chatty PT, sex, impressing users, including Jensen Huang from Invedia.

1:01How is all of this playing out on Asian markets today? Yes, so the launch of GPT-6 was actually on the Friday morning of Asia, but not that many users had access to it. And it's really gotten going since Friday night. So a lot more use cases being developed on the weekend. We saw even more coming out on X. And basically what's shining out here is that this LLM is the first that can use software. Other people software like a human wood, whether you're talking about graphics or Excel or what have you. And the use cases have really exploded from there. And because those tasks are pretty long run, it's re-ignited the use case for memory and compute. So as a result, you see, hyenex up 7%, Samsung up 5, and in media tech, for example, in Taiwan that makes custom chips for the hyperscalers around that compute need, they are up 7.8%. But most importantly, the listed kind of play on opening it itself, soft bank is up 10% in Japan. I'm still using chat GPT without actually paying for it.

2:02Am I behind? Listers are going to have to write in some questions to ask. You might need to pay up for the Astra one years. Should I? I should be paying? I've been told there we are Anthony. Not all good news though in the tech sector. You've actually picked up a couple of stocks that are sliding even amidst this general kind of optimism. Exactly. And it's this kind of optimism. If you get downgraded in this kind of market, the market is not going to be kind to you and try to find out what is happening. They're going to sell first and think about it later. And as a result, you saw log in down, limit down into Taiwan after it gets downgraded. And similarly, Baidu is not in the southbound connect, which has come as a big surprise to everybody because of what a big stock it is. And as a result, it's sharply underperforming the rampant AI rally in China as well. It's down 5.2%. And meanwhile, China is injecting the equivalent of 45 billion dollars into its largest banks and insurers. How's that announcement playing out in stocks today?

3:03And this speaks to a rather complex situation in Chinese macro. The banks have actually been doing really well here to date. And the government is basically doing a form of opportunistic trading by taking money off the table and the banks by asking them to do a share placement. And the Ministry of Finance is subscribing. So China is basically replacing a shareholder capital with kind of long-term government money. And while that does dilute the banks and you're seeing ICBC down 2% and back of China down 2%, it does build up their capital adequacy ratios and their solvency ratios for the insurance companies. And that may pre-kind of figure a rate hike there because a rate hike in China is kind of probably necessary at this point. Growth is slowing, credit growth is quite slow. And as a result, inflation is very low. On the other side of that, you have the tech trade. So the Chinese tech index has really taken the message from this. The Chinese is up 3.2%. And it's also getting a help from upgrades from the likes of Goldman in Zhongji in a light

4:06which is up 10%. OK, that's interesting on China. But I'm also thinking about the Bank of Japan and what we have in store of the next few weeks. I mean, I was in the US last week and the focus was all on breaking the US jobs data on Friday and thinking about the CPI data out of the US this Friday. But then in between times, you go look at the BOJ, looking a bit more hawkish. Yeah, and that speaks to kind of Goldman's call that their number of reasons to be tactically bullish the year now. But it's managed to hold 156. And for me, that was the most interesting repercussion of the jobs data that nothing happened to the yen pretty much from a very strong print. Now, there is a lot of detail in that print that is suboptimal. And we also have US CPI coming out on the back end of the week. But the BOJ is under a lot of pressure to do something very quickly about the yen. The government is setting fire to a lot of money to support the yen. Japanese reserves have fallen under $1 trillion, which is potentially quite needle moving. But if the Bank of Japan does not do something, the pressure will come completely on the

5:10Ministry of Finance and other government yen supporting organs. This stock movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market moving headlines, listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg.com and on Apple CarPlay and Android Auto with the Bloomberg Business app. Hi, I'm Tom Keane, inviting you to join me for the Bloomberg Surveillance Podcast. It's about making you smarter every business day. I'm Paul Swini. We bring you complete coverage of stocks, bonds, commodities, even crypto, all the information you need to excel in the markets. And I'm Alexis Christofferis. Listen to us for essential conversations with the smartest names and economics, finance, investment, and international relations.

6:32That's the Bloomberg Surveillance Podcast. Subscribe today on Apple, Spotify, or anywhere you listen.