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.
Now, let's take a look at some of the stocks on the move in Asia. I'm Caroline Hepga and joining me from Hong Kong. It'spinberg's market supporter, Anthony Stevens Antonie. Great to speak to you Asia, Taking, as you've put it, a glass half full view of the FED decision to hold us interest rates steady, which equities are making gains and what is the thinking in your part of the world.
Yeah, the decision that investors face now is which equities or which sectors can offset this rise in interest rates
that may be coming in the short term. And they've decided upon tech, specifically tech around the AI semiconductor space and the AI semiconductor supply chain, and those names are moving very sharply higher in a Korea and Japan in particular, you have Heinex up seven percent, Murata up over ten percent, and a whole range of these specialty chemical makers and supply chain names that are up five to eight percent in Taiwan, Japan and Korea. China is a bit more
mixed on tech. But even in China, you see the semiconductor space up three to five percent.
Chinese hyperscalers though following American well, the American Frenomi is lower.
Yeah, that's you know, that's been a theme for a while now, but the FED has kind of made that a lot worse. So hyperscaler capex will pay off only in the future as they invest today to sell Uai tomorrow, but the FED rate decision makes it a bit harder. And you saw the mag seven sell off in the US, and now you're seeing names like ten Cent and Baba Alibaba down around two to three percent, leading the HS
tech lower. So that dichotomy in China continues to be quite hard, between software being down and hardware being up.
Yeah. Meanwhile, there's one kind of industry specific story that I wanted to talk about. This is China's rules around food delivery. There's been actually a number of statements around food delivery companies or actions around it. They've taken a bite out of Ali Baba's shares. Just tell us what these draft rules are all about.
So the government continues to be concerned about destructive competition or involution as the Chinese call it, which is basically people throwing money out the window to corner the food delivery market, and Methuan is the competitor to Ali Baba, and both these companies have dug a deep hole in their balance sheet to corner this market. Ali Baba also has to contend with the broader weakness of the Chinese consumer, So Chinese consumer retail sales for very weak on the
data dump yesterday, and that has been a long term trend. Also, Bloomberg is reporting the China consumption consumer debt is denting China consumption. These macro factors are constraining Ali Baba's ability to win this food delivery war and also what returns they will get even if they do win it. So
the government is very concerned that it's it's potential. AI giants are busy spending money on food delivery, which is obviously not a national security item, instead of spending money on AI like the US.
The 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 dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.