Advantest Gains, NetEase Dips, Daiichi Sankyo Drops

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0:08 The Stock Movers Report. Your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg data.

0:16 Let's talk about the stocks on the move today in Asia. I'm Caroline Hipka and I'm joined by our markets reporter, Anthony Stevens. Great to speak to you, Anthony. You've been... So kind talking to us about Anthropic, which has turbocharged AI stocks around the world. It's fading a little bit today, obviously, because, you know, we're so many hours after the initial news, but there's still huge focus on this business, private business now, you know, going to become public, going to list on the NASDAQ.

0:46 Yeah, there's also the small matter of the meta upside. So we are going to see some pressure in terms of actual capital raising from Meta. The anthropic IPO is a little bit away, and that is a different kettle of fish. But in the current market environment, you're going to see quite a flood of issuance from the likes of Meta. So that's probably going to be damping sentiment.

1:06 We'll get into what's getting hurt the most by that. But for now, Hynix, for example, is up 5%. Hynix is also being a little bit of a good corporate citizen in Korea. They're thinking about a shareholder return program. that is several degrees more generous than they thought about the last time around. So the local retail invest base is really looking at Samsung and Hynix earnings this week to really put a line under sentiment in Korea. Advantest is up 9%. There was a lot of worry that America was running out of capital to continue to invest in the AI semiconductor supply chain. That's been addressed somewhat by the Anthropic raise as well as the huge raises from SpaceX and Broadcom. Alongside that, it's also revived fortunes

1:49 in SoftBank, which is up 5%. And in Korea, the printed circuit board maker Samsung Electromechanics is up 7.5%. And that team is strong pretty much across the region, up around 4% to 5% amongst the big printed circuit board makers in the region.

2:03 Yeah.

2:03 I mean, it is extraordinary, isn't it? Meta is asking for $ 95 billion. Broadcom wants $ 63 billion of investments. And then it's tens of billions that Anthropic will ask the market to deliver in terms of investment. I mean, there is a question in some senses about whether investors are happy to deliver that. It seems that they are. Look, in terms of other stocks that you're keeping an eye on for us, Chinese stocks seem to be struggling more today.

2:31 Why is that?

2:33 And there is an aspect of something that you mentioned, right? It's just a flood of money that you're talking about that has to go into these new issuers. Some of it has to come out of something else, right? And we are seeing a lot of that come out of the Chinese tech ecosystem on the other side. We do see Chinese bond yields hitting record lows. That's a really good example of the kind of pessimism around the Chinese economy that's building, despite pretty strong industrial profits, pretty resilient state-owned enterprises. But that's not an exciting story for the Chinese tech industry. And we continue to see the Star 50 getting absolutely lit up here as we speak. It's down 5% now, which, you know, accelerating from just down

3:12 one or something like that. And a lot of these high-tech names in China are down, limit down. But let's run through the big ones. In Hong Kong, NetEase is down 4%. Meituan is down 3%. And just the Chinax index is also down 3.4%. So a lot of the stuff that was ripping in Asia is down in China. And it really does look like the Chinese ecosystem is seeing some give-ups from clients and market people who are just bored of staying around in China and want to chase the U.S. theme. Yeah.

3:43 Okay. Interesting. What about HSBC? This sort of sets us up for the European bank earnings in a lot of ways. Third quarter earnings out today, but investors don't seem that pleased with it.

3:56 HSBC has become a strange animal as a European bank. They're very much an Asian wealth manager at this stage. And that part of the business is going well. New Asian money is going well. Despite the Chinese tax crackdown, you continue to see new money in Hong Kong continue to do well. But the fee income on that looks to be a shade under expectation. We also have net interest in income, also a shade under expectation. And what was really interesting and maybe more relevant to the rest of the European banks is how these higher bond deals are hurting their capital adequacy ratios. Now, Europe is obviously a bit different from the U.S. in that that's a very strict requirement. There's little wiggle room. There's all this

4:35 regulatory headache around it. And the market is kind of worried about this. On the offsetting side, they do have a buyback that they've announced, a pretty big buyback. But Hong Kong recently has stopped being impressed by buybacks.

4:48 If they cared about buybacks, Tencent would be higher. 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.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.