# Chipmakers Lead Asia Stock Gains

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 22 Jul 2026, 20 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/ffd80191-f392-4cf3-999a-b48f00251818/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. Stocks in Asia climbed for a second day as chipmakers at the heart of the artificial intelligence boom extended their rebound, offsetting concerns over rising oil prices after renewed escalation in the US-Iran conflict. The rally in technology stocks followed weeks of volatility in the year's best-performing corner of the market as investors questioned whether massive AI spending will translate into commensurate returns. We speak to Winnie Hsu, Bloomberg's Asia Equities Reporter. And for more analysis on the latest moves in the market, Bloomberg TV hosts Shery Ahn and Haidi Stroud-Watts spoke to Kyle Rodda, Capital.com Senior Market Analyst. See omnystudio.com/listener for privacy information.

## Transcript

[0:00] Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
[0:10] Speaker 2: Welcome to the Daybreak Asia Podcast. I'm Doug Krisner. Semiconductor
[0:14] Speaker 2: shares rebounded in the US. We had the Philadelphia Semiconductor
[0:17] Speaker 2: Index jumping more than five percent on Tuesday.
[0:21] Speaker 3: Now.
[0:21] Speaker 2: Sentiment was supported by strong chip export data from both
[0:24] Speaker 2: South Korea and Taiwan. And then on top of that,
[0:27] Speaker 2: TSMC reportedly spoke with clients about price increases of as
[0:32] Speaker 2: much as ten percent in twenty twenty seven. The nie
[0:36] Speaker 2: K reports these increases would cover the cost of rising
[0:39] Speaker 2: manufacturing materials. The term chipflation comes to mind. So this
[0:44] Speaker 2: morning and Soul, you've got a rally in both sk
[0:47] Speaker 2: Heinez and Samsung helping to send the COSTPY higher, extending
[0:51] Speaker 2: Tuesday's rally. For a closer look at the price action,
[0:54] Speaker 2: let's bring in Bloomberg's Winnie Sue. Winnie is one of
[0:57] Speaker 2: our Asia equities reporters and she joined from our studios
[1:01] Speaker 2: in Hong Kong. Thank you for being here. It's always
[1:03] Speaker 2: a pleasure. I was struck when I was reading the
[1:05] Speaker 2: m Live blog today on the Bloomberg that strategist Garfield
[1:09] Speaker 2: Reynolds was talking about the volatility and the costp. He
[1:13] Speaker 2: was framing it in terms of gyrations in the South
[1:17] Speaker 2: Korean equity market, and he made the point by saying, basically,
[1:22] Speaker 2: they've become a feature rather than a bug. And I'm
[1:25] Speaker 2: wondering whether you feel that investors need to have a
[1:30] Speaker 2: sense of calm before they return to the market. It
[1:34] Speaker 2: wouldn't appear to be that way today because I mean,
[1:36] Speaker 2: we've got a pretty strong rally underway.
[1:39] Speaker 3: Yeah, on a day like this, you would think that
[1:42] Speaker 3: they would jump right back in because that's what the
[1:44] Speaker 3: price action is showing. And we even got another sidecar
[1:47] Speaker 3: today and guess what. This is the thirty ninth sidecar
[1:51] Speaker 3: we've had so far this year. So it really goes
[1:53] Speaker 3: to show how volatile this market has been. And actually,
[1:57] Speaker 3: when I've been talking to the long term investors, you
[2:00] Speaker 3: would think that these kinds of volatility don't really matter
[2:03] Speaker 3: to them too much because they look very long term.
[2:06] Speaker 3: But surprisingly, I'm really seeing and hearing investory's sentiment turning
[2:12] Speaker 3: quite a bit because of this extreme volatility. I was
[2:15] Speaker 3: just talking to East Spring yesterday. The fund manager there
[2:19] Speaker 3: told me that the one when you look at the one,
[2:22] Speaker 3: your return and this month has just been terrible in
[2:26] Speaker 3: terms of performance, and they don't want that volatility anymore
[2:29] Speaker 3: if they can just in fact get the chip exposure
[2:32] Speaker 3: through Taiwanese stocks. So that's what he's doing. He is
[2:35] Speaker 3: in fact trimming a bit more Korea and buying Taiwanese stocks,
[2:39] Speaker 3: and he just preferred to stay on the sidelines until
[2:43] Speaker 3: all these leveraged and these volatility is being washed out furthermore.
[2:48] Speaker 3: And when I talk to Fidelity as well, I was
[2:51] Speaker 3: asking them how they are kind of managing this type
[2:55] Speaker 3: of volatility right. They mentioned two things that was quite interesting.
[2:58] Speaker 3: One is that they have smaller sizes of their trades
[3:04] Speaker 3: because volatility has really spiked up about three times or
[3:07] Speaker 3: so since December. That means from the risk management perspective,
[3:13] Speaker 3: they actually have to trim their positions smaller to a
[3:16] Speaker 3: third to balance that risk exposure. And then they also
[3:24] Speaker 3: need to manage their margin of safety to have it bigger.
[3:27] Speaker 3: In the past, it might be fifteen percent drawdown than
[3:29] Speaker 3: you buy the dip, but because it swings so much,
[3:32] Speaker 3: the drawdown now is about maybe twenty five percent when
[3:35] Speaker 3: they actually see a good entry point to buy the dip.
[3:40] Speaker 3: So I find that quite interesting as sentiment kind of
[3:43] Speaker 3: sours about the overall outlook for South Korea.
[3:46] Speaker 2: So this story on the chips is basically a story
[3:49] Speaker 2: about artificial intelligence. We know that, and we've been talking
[3:53] Speaker 2: on the podcast here in the last few days about
[3:56] Speaker 2: moonshots Kimmy K three AI model and the impact that
[3:59] Speaker 2: it having on market psychology. One of the things that
[4:02] Speaker 2: I understand reading a bit about Kimmy K three is
[4:06] Speaker 2: that it requires a substantial capacity of high bandwidth memory.
[4:12] Speaker 2: Now we know that as k Heinex plays in that space,
[4:14] Speaker 2: primarily Samsung a little bit, not as much as sk Heinix.
[4:19] Speaker 2: And then we have this Chinese firm, chun Ching Memory Technologies,
[4:24] Speaker 2: which is a big memory producer on the mainland, and
[4:27] Speaker 2: I guess Chunctionin is ready to do an IPO here
[4:31] Speaker 2: before the end of the month, is that right, Yeah.
[4:34] Speaker 3: That's a really exciting one that we're watching, right. We're
[4:36] Speaker 3: expecting it to IPO on Monday in fact, And just
[4:42] Speaker 3: kind of to your point about the benefits to these companies.
[4:47] Speaker 3: So interestingly, when you look at the initial reaction when
[4:51] Speaker 3: we got this news on the moonshot AI development, markets
[4:56] Speaker 3: actually plunged because the concern back then was if we
[4:59] Speaker 3: have cheaper, more efficient Chinese AI models. What does that
[5:03] Speaker 3: mean for the massive spending of these US hyperscals and
[5:07] Speaker 3: if that's justified or not, if the demand for these
[5:11] Speaker 3: advanced chips will remain solid or not. But then as
[5:15] Speaker 3: people really digest that information, as you mentioned, and that's
[5:18] Speaker 3: probably also tied to the reason the past few days
[5:21] Speaker 3: how chip stocks are coming back, is that in the
[5:24] Speaker 3: end it benefits the overall demand. If we see that
[5:29] Speaker 3: these cheaper models are being implemented, that actually means more
[5:34] Speaker 3: adoption across the industry and that would require more chips.
[5:39] Speaker 3: So that's a good part. And CXMT is such an
[5:43] Speaker 3: interesting case because it is the world's fourth biggest dram
[5:49] Speaker 3: company and the IPO would actually make it China's second
[5:55] Speaker 3: biggest IPO ever and the biggest of Asia twenty twenty two.
[6:01] Speaker 3: So all eyes are on that because it really is
[6:05] Speaker 3: in the center of this tech rivalry between the US
[6:08] Speaker 3: and China. But interestingly, foreign investors, they don't have much
[6:14] Speaker 3: access to the IPO because it's listed on the mainland
[6:18] Speaker 3: and they won't be able to buy until this stock
[6:22] Speaker 3: is available through the stock connect. So we're seeing foreign
[6:26] Speaker 3: investors buying up these different proxies to get exposure to
[6:30] Speaker 3: this IPO, whether it's buying Chinese banks that are investors
[6:35] Speaker 3: of these IPOs, or even some of the hardware names,
[6:40] Speaker 3: names of CXMT suppliers for example. And we really saw
[6:44] Speaker 3: these stocks rallied in the past few months, so you
[6:47] Speaker 3: can already sense that excitement around this IPO that is
[6:51] Speaker 3: being very much overdy subscribed as well.
[6:54] Speaker 2: Before I let you go, I have to ask about
[6:56] Speaker 2: some news regarding potential expansion plans on the part of
[7:01] Speaker 2: sk Heinix. We know that since the Biden administration in
[7:04] Speaker 2: the US, there has been an effort to try to
[7:06] Speaker 2: reshore American semiconductor manufacturing or reshore semiconductor manufacturing. I guess
[7:14] Speaker 2: you have to go back a long time before American
[7:17] Speaker 2: firms were actually building chips in the US. We know
[7:21] Speaker 2: that there was the Chips Act. The Trump administration has
[7:23] Speaker 2: kind of leaned into that as well, requiring companies like
[7:26] Speaker 2: sk Heinex and Samsung commit to building US facilities. And
[7:30] Speaker 2: there was a report that sk Heinix was planning to
[7:33] Speaker 2: acquire a facility owned by Intel. Do you have any
[7:36] Speaker 2: information on that.
[7:38] Speaker 3: Yeah, that came out this morning, and you know it
[7:41] Speaker 3: was quite interesting the local report saying that Skhinis considering
[7:47] Speaker 3: acquiring the ohio plant of Intel, and in fact we
[7:53] Speaker 3: actually just heard that sk Heinis denied that their plan.
[7:57] Speaker 3: They have that plan to acquire. But what this potentially
[8:00] Speaker 3: mean is that it will do two things. First, it
[8:06] Speaker 3: will help ESK high Nex handle that pressure from the US,
[8:10] Speaker 3: as you just mentioned, to invest further in the country
[8:14] Speaker 3: and also help Khnis to expand capacity further given how
[8:21] Speaker 3: the markets are also expecting them to expand their supply.
[8:25] Speaker 3: Given the constraints that we are seeing right now, esk
[8:28] Speaker 3: Highnis did still have this plan of being able to
[8:32] Speaker 3: manufacture these memory chips in the US in the next
[8:35] Speaker 3: within the next five years, so we will still be
[8:38] Speaker 3: very closely monitoring to see how other plans they have
[8:42] Speaker 3: to expand further in the US. But this could actually
[8:45] Speaker 3: be interesting as well, just because the Intel Ohio plant
[8:49] Speaker 3: is actually one of the newest plans that Intel has
[8:53] Speaker 3: and it the operations were in fact postponed to twenty
[8:59] Speaker 3: thirty or so, just because Intel has been struggling to
[9:02] Speaker 3: secure its clients. So this big manufacturing plant could have
[9:07] Speaker 3: really brought a lot of capacity for Skhiinex and it's
[9:10] Speaker 3: planned to develop further in the US.
[9:13] Speaker 2: And as long as we're talking about Intel, the stock
[9:15] Speaker 2: rallied by more than eight and a half percent in
[9:17] Speaker 2: the US session on Tuesday on plans to cut more jobs. Curiously, Winnie,
[9:23] Speaker 2: thank you so very much. It's always a pleasure. Bloomberg's
[9:26] Speaker 2: Winnie Sue, who is one of our Asia equities reporters,
[9:29] Speaker 2: joining from Hong Kong here on the Daybreak Asia podcast.
[9:39] Speaker 2: Welcome back to the Daybreak Asia Podcast. I'm deg Krisner.
[9:42] Speaker 2: Stocks in both Tokyo and Sold are higher thanks to
[9:45] Speaker 2: a rebound among chip makers. The positivity on the outlook
[9:49] Speaker 2: for AI is offsetting concern over rising oil prices due
[9:53] Speaker 2: to an escalation in the conflict between the US and Iran.
[9:57] Speaker 2: And that is where we begin our conversation with Kyle Rada.
[10:01] Speaker 2: Kyle is senior market analyst at Capital dot Com and
[10:04] Speaker 2: he spoke with Bloomberg TV host Sherry On and Heidistraud Watts.
[10:08] Speaker 4: What's more compelling to investors are really led to sort
[10:13] Speaker 4: of try and ignore the geopolitics for the situation. But
[10:15] Speaker 4: does that come into play when these fed expectations really
[10:18] Speaker 4: start to change.
[10:22] Speaker 5: I think so. I mean it's a matter of urgency
[10:24] Speaker 5: and rate of change when it comes to rates. I
[10:26] Speaker 5: think this sort of energy story, I think the underlying
[10:28] Speaker 5: inflats and pressures are still strong, and the combination of
[10:31] Speaker 5: fairly loose fiscal settings as well as this AI investment
[10:34] Speaker 5: boom and the sort of pressure that's putting on physical
[10:36] Speaker 5: resources right around the global economy is going to mean
[10:38] Speaker 5: that underlying inflation pressures are going to persist and that
[10:41] Speaker 5: the FED will eventually have to tweak rates somewhere down
[10:44] Speaker 5: the line, probably more calibration hikes. But like I said,
[10:47] Speaker 5: this situation from the Middle East and the rapid rise
[10:49] Speaker 5: we've seen once again in oil suggests that there are
[10:52] Speaker 5: going to be those supply side factors coming through from
[10:54] Speaker 5: a higher energy energy prices across the globe, which will
[10:58] Speaker 5: sort of create that urgency for the FED to tweak
[11:00] Speaker 5: a little bit sooner rather than later. And of course
[11:04] Speaker 5: this comes with a high degree of uncertainty too, because
[11:06] Speaker 5: we are obviously well aware that with the push of
[11:10] Speaker 5: a truth you know, social posts, you know, the oil
[11:14] Speaker 5: price could conceiptably go back down to sort of seventy
[11:16] Speaker 5: dollars and in the space of you know, fairly quick
[11:18] Speaker 5: succession or you know, in the space for a few weeks,
[11:23] Speaker 5: you know, whereas if things escalate, things can get much worse,
[11:25] Speaker 5: and again that kind of rate volatility will pick up
[11:27] Speaker 5: even further. So you know, effectively, like I said, you know,
[11:30] Speaker 5: this is kind of mar in the markets. Obviously it
[11:32] Speaker 5: hasn't manifested too much in equity volatility recently, but if
[11:37] Speaker 5: things continue to grind high here for oil, the story
[11:39] Speaker 5: for the feed will be that it will have to
[11:41] Speaker 5: high interest rates soon it rather than later, and that
[11:42] Speaker 5: won't be obviously a positive thing for equities.
[11:46] Speaker 4: The volatility is firmly in the AI chipmeker space, right,
[11:49] Speaker 4: Is this just the way it is going forward? Because
[11:51] Speaker 4: even if we are kind of set for our high
[11:53] Speaker 4: day to day, those gains have not been so readily
[11:56] Speaker 4: translated over the last few weeks.
[12:00] Speaker 5: I think everyone's waiting for earning season and basically tech earnings,
[12:03] Speaker 5: which we're going to start to get. And I think,
[12:04] Speaker 5: you know, maybe the rally that we've seen in the
[12:06] Speaker 5: last twenty four hours or so on Wall Street has
[12:08] Speaker 5: been very much the market's front running that I do
[12:10] Speaker 5: see a lot of similarities to where we were at
[12:13] Speaker 5: this point in the last quarter which is to say
[12:15] Speaker 5: that we were sort of marred by geopolitical risk and
[12:18] Speaker 5: interest rate uncertainty. But then it was these extraordinary profits
[12:21] Speaker 5: from the hyperscalers in particular that really fed this narrative
[12:24] Speaker 5: that monetization was happening, that the investment boom would continue
[12:27] Speaker 5: because it'd be sort of greater free crash flows to
[12:29] Speaker 5: sort of pump back into capital expenditure. And we saw
[12:32] Speaker 5: everything rise from you know, semis because obviously that expectation
[12:35] Speaker 5: that floated into sort of chip demands amongst other things
[12:38] Speaker 5: as well, along with of course, you know, those hyperscalers,
[12:41] Speaker 5: those who were sort of at the front line of
[12:43] Speaker 5: benefiting from the artificially intelligence technology themselves. So my view
[12:48] Speaker 5: is that you know, we're likely to see another earnings
[12:50] Speaker 5: period where we're going to get some solid results from
[12:54] Speaker 5: the tech giants, that what we've seen in the SEMIS
[12:57] Speaker 5: and what we've seen in the tech space will probably
[12:59] Speaker 5: is just a little bit of con validation and a
[13:00] Speaker 5: little bit of churn. But you know, obviously what will
[13:02] Speaker 5: be critical will be actually reacting to the results. My
[13:05] Speaker 5: bias is that there's results to be solid and you know,
[13:07] Speaker 5: set this sort of trends higher once again, but you know,
[13:11] Speaker 5: we'll just sort of have to wait and see. Fortunately,
[13:13] Speaker 5: you know, we've got that sort of data now, that
[13:15] Speaker 5: the earning data that the markets have been looking for
[13:17] Speaker 5: over the last few weeks, which is meant that you know,
[13:19] Speaker 5: effectively we've been waiting for that catalyst to either to
[13:22] Speaker 5: push higher or move lower, if you know, earthing's happened
[13:25] Speaker 5: to disappoint.
[13:27] Speaker 1: Especially given the more than ninety percent of S and
[13:30] Speaker 1: P five hundred companies have been in profits so far, right,
[13:33] Speaker 1: but at the same time that the ones that miss
[13:35] Speaker 1: actually were heavily punished.
[13:37] Speaker 2: What are the.
[13:38] Speaker 1: Ramifications and implications for the Asian markets when we're seeing
[13:41] Speaker 1: already so much volatility right now, the career exchange activating
[13:45] Speaker 1: the sidecar to hold the costly program buying. I mean,
[13:49] Speaker 1: it's been up and down, up and down for this market.
[13:54] Speaker 5: Yeah, I mean, you know, clearly there's been some knock
[13:56] Speaker 5: on effects I think from some of the interventions that
[13:58] Speaker 5: policy makes in South have made to try and control
[14:01] Speaker 5: what has been pretty much a wild and unruly market
[14:05] Speaker 5: in South Korea. And of course, you know, a part
[14:06] Speaker 5: of that is, you know, to do with chip demands
[14:09] Speaker 5: and the kind of choppiness that we've seen bleed through
[14:11] Speaker 5: from Wall Street trade where some you know, semi conductive
[14:13] Speaker 5: stocks have basically sort of pulled back and blown off
[14:15] Speaker 5: some froth. And that's you know, hit s k Hens,
[14:18] Speaker 5: that's H's Samsung and all those sort of big names,
[14:20] Speaker 5: you know, the other side of this, though, with obviously
[14:21] Speaker 5: South Korea, is there's just such a heavy retail griven market.
[14:24] Speaker 5: Now policymakers are realizing the systemic risk associated with having
[14:29] Speaker 5: such a highly leveraged, highly retail dominated market, not just
[14:33] Speaker 5: to it's equity markets and financial system, but also obviously
[14:37] Speaker 5: financial markets around the world because they were sort of
[14:39] Speaker 5: you know, potentially dictating even some force selling in some
[14:41] Speaker 5: of that in assets in other markets to obviously couple
[14:45] Speaker 5: losses in the in the in the in the stocks
[14:47] Speaker 5: that were sustaining losses in the South Korean market. So
[14:50] Speaker 5: I think, if anything, what we can say about the
[14:52] Speaker 5: Asian region if we do get some of these solid
[14:54] Speaker 5: if we do get solid results from some of these
[14:55] Speaker 5: tech companies, that boost that AI narrative once again starts
[14:59] Speaker 5: taking that fear away of basically you know, peaking the
[15:01] Speaker 5: AI investment and sort of peak monetization peak profits is
[15:05] Speaker 5: it will take some of the pressure of policy makers,
[15:07] Speaker 5: It takes some pressure off the market and eat some
[15:09] Speaker 5: of those technical pressures as well, so that you know,
[15:11] Speaker 5: things can basically take balance again. Stability can return to
[15:15] Speaker 5: obviously that very volatile pocket of global markets.
[15:19] Speaker 3: Kyle.
[15:19] Speaker 1: At least some relief could be the fact that pharmasauts
[15:22] Speaker 1: are really not doing much despite the fact that this
[15:24] Speaker 1: morning we got President Trump talking about generic drugs and
[15:27] Speaker 1: taxing them what one hundred percent or so from August
[15:30] Speaker 1: twenty twenty eight. It seems that the markets have already
[15:35] Speaker 1: priced in any trade volatility, right. I mean, we'll continue
[15:38] Speaker 1: to get these headlines around new tariffs, But at the
[15:41] Speaker 1: same time, what are the implications if we actually do
[15:44] Speaker 1: get supply chain disruptions because of these tariffs, and there
[15:47] Speaker 1: are implications with higher oil from the iron war for
[15:51] Speaker 1: the Federal Reserve.
[15:54] Speaker 5: I think there is the possibility that the markets have
[15:56] Speaker 5: taken their eyes off the ball, because there's only so much,
[15:59] Speaker 5: at least from anarity point of view, that traders can
[16:01] Speaker 5: focus on at any given point in time. And I
[16:03] Speaker 5: think there has been instances over the last couple of
[16:05] Speaker 5: years where you know, it might issue might be on
[16:08] Speaker 5: the other foot, we've been sort of dominated by you know,
[16:10] Speaker 5: trade uncertainty and fears about tariffs and things of that nature,
[16:13] Speaker 5: and then being blindsided by geopolitical risk or vice versa.
[16:16] Speaker 5: What we're seeing now where you know, there is clearly
[16:18] Speaker 5: still the intention from the Trump administration to try and
[16:21] Speaker 5: push forward with its trade agenda, even though obviously pretty
[16:24] Speaker 5: much you know, President's Trump's whole second term now has
[16:26] Speaker 5: been dominated or a lease or I should say, the last
[16:28] Speaker 5: six months of Trump's second term now has basically been
[16:31] Speaker 5: dominated by foreign policy, in particular this war that's been
[16:33] Speaker 5: started in the Middle East. So I think in fact,
[16:36] Speaker 5: the markets aren't discounting this fully that you know, perhaps
[16:38] Speaker 5: the Trump administration will try and you know, more or
[16:40] Speaker 5: less you know, fighter war on two fronts, a trade
[16:44] Speaker 5: war and a hot war, and you know, when it
[16:47] Speaker 5: comes to the former, that could mean high tariff's, more
[16:50] Speaker 5: trade uncertainty, another sort of miniature supply shock, which has
[16:54] Speaker 5: been characteristic of Trump's you know, the economic philosophy for
[16:57] Speaker 5: a long time. Certainly is his second term and could
[16:59] Speaker 5: be something that is you know, maybe a bit of
[17:01] Speaker 5: a grace one for the market. So something definitely to
[17:03] Speaker 5: watch out for because again I don't think the markets
[17:05] Speaker 5: are really paying much attention to it. Perhaps you could
[17:08] Speaker 5: again argue a little bit complacent when it comes to
[17:10] Speaker 5: trade US trade policy.
[17:13] Speaker 4: Kyle, when it comes to China markets, A national team
[17:15] Speaker 4: is back, it seems, given the view on China stocks
[17:19] Speaker 4: was becoming more constructive in recent weeks and months. Anyway,
[17:22] Speaker 4: does this just add to that support?
[17:26] Speaker 5: I think it does. I mean, and it shows you,
[17:28] Speaker 5: you know, two things, that we're in an era of
[17:31] Speaker 5: huge economic competition because of what's going on with artificial intelligence,
[17:34] Speaker 5: when there's the commercial imperatives to try and make sure
[17:38] Speaker 5: that you know, every entity and every business is moving
[17:41] Speaker 5: forward to try and find ways to monetize this particular
[17:43] Speaker 5: technology and grow. And that is an interest aligned from
[17:46] Speaker 5: business interests as well as political interests in pretty much
[17:49] Speaker 5: every economy around the world. But the flip side of
[17:52] Speaker 5: it is the strategic interests obviously in trying to protect
[17:54] Speaker 5: these industries and make sure that effectively financial markets and
[17:58] Speaker 5: financial conditions and asset well enough support to make sure
[18:01] Speaker 5: that firms do remain in a position where they can
[18:04] Speaker 5: sort of, you know, try and achieve their economic objectives.
[18:06] Speaker 5: Again because they more or less aligned with those sort
[18:09] Speaker 5: of strategic comparitives of trying to make sure that you
[18:10] Speaker 5: don't get left behind in these artificial intelligence arms race.
[18:13] Speaker 5: So the fact that you know, we've had over the
[18:15] Speaker 5: last couple of days Chinese authority stepping into try and
[18:17] Speaker 5: support asset prices more broadly financial conditions as a way
[18:20] Speaker 5: of boosting sentiment, you know, boosting economic activity, you know,
[18:24] Speaker 5: boosting you know, the asset values of some of these
[18:26] Speaker 5: companies that are going to be important to you know,
[18:28] Speaker 5: the Chinese economy in the future as well as you know.
[18:32] Speaker 5: Obviously the sort of Kinney breakthrough is this sort of
[18:33] Speaker 5: deep seek moment means that I think there's the potential
[18:36] Speaker 5: we could see this sort of valuation gap that has
[18:37] Speaker 5: been pretty persistent for a little while in US markets
[18:40] Speaker 5: compared to certainly Chinese markets and those sensitive to China
[18:43] Speaker 5: close up a little bit. So I think it's a
[18:45] Speaker 5: fairly positive signal signal, especially considering, you know, valuations in
[18:49] Speaker 5: China again relative to US peers have been so depressed.
[18:53] Speaker 2: That was Kyle Rada, senior market analyst at Capital dot Com,
[18:56] Speaker 2: speaking with Bloomberg TV host Heidi Stroudwatts and Sherry on
[19:00] Speaker 2: bringing you their conversation here on the Daybreak Asia Podcast.
[19:06] Speaker 2: Thanks for listening to today's episode of the Bloomberg Daybreak
[19:09] Speaker 2: Asia Edition podcast. Each weekday, we look at the story
[19:13] Speaker 2: shaping markets, finance, and geopolitics in the Asia Pacific. You
[19:17] Speaker 2: can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
[19:21] Speaker 2: or anywhere else you listen. Join us again tomorrow for
[19:24] Speaker 2: insight on the market moves from Hong Kong to Singapore
[19:28] Speaker 2: and Australia. I'm Doug Prisner, and this is Bloomberg

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