Samsung Drops, Xiaomi Dips, Telkom Indonesia Bounces

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0:16 Now, let's have a look at some of the stocks on the move today in Asia. I'm Caroline Hepkin. I'm joined by our markets reporter, Anthony Stevens. Anthony, good morning. Look, tech really struggling today. Even though the Philadelphia Stocks Index in the US was up yesterday, you got this big sell-off in Asia today tied to AI.

0:35 Why? We had a little bit of the rally yesterday in Asia. We led kind of the U.S. There was a 5% intraday rally in Korea. And then we had some upgrades in the tech space from the U.S. You know, Goldman upgraded Covive. And then Covive still finished down, right? So there was a little bit of hesitance coming into today.

0:54 And that's gotten significantly worse as the days went on. The European investor incrementally has come in and sold very hard. We have Samsung down 3%, Hynix down 4%. And this little IPO that's causing a big headache, which is called Elise, the worst timed kind of data center IPO probably in history.

1:12 It's the worst IPO above $ 100 million in Korean history. That's down 36%. So that kind of shows you what the sentiment around the data center space looks like. There are some headlines doing the rounds on social media and in the U.S. press about how the lack of power is starting to constrain data center spending in the U.S.

1:31 So apparently Amazon and others have millions of dollars of server components and GPUs sitting around. waiting to be connected to power. And we've known that's been a constraint for a while, but that's starting to really feed into markets. And Korea feels it because memory is very expensive now. But what if all of this supply gets mothballed for lack of power for the foreseeable future? Will it still hang on to its pricing power?

1:58 Yeah, absolutely. I mean, You mentioned Corweave. Shares were kind of really, yeah, it was very choppy yesterday and dropped 25% last week. In terms of Hong Kong, back after a holiday, again, the Hang Seng is down also this morning. What's happening with Chinese stocks?

2:17 An interesting dispersion in Hong Kong. The financial sector and the consumer sector catch up to China, which had pretty good economic data yesterday. And you see the tech sector catch down to the rest of the region. So you have weakness in the likes of Tencent, which is down 2%, Lenovo, which is down around 9% at the lows. So that's reflecting the global tech sentiment. But domestic China is doing reasonably well. And you have Xiaomi up one and a half.

2:41 And the banks in Hong Kong, China are reasonably resilient following their mainland cousins. Yeah.

2:48 And in terms of Indonesia, so we're following this story closely because of that warning from MSCI about a double downgrade to the stock market. And you've seen a big impact on bonds and stocks in Indonesia. What's happening there?

3:02 The exchange did meet MSCI yesterday. They did not share the details of what they spoke about, but they've come back with at least one remedy that seems to be on the right path. They're looking to kick out some of these cross holdings, which are concentrated shareholdings. out of the main Jakarta index. That's got people excited about a potential path to rehabilitation. After all, what MSCI wants is enforcement action to kind of prevent the kind of cross-trading or coordinated trading they've been warning against. And the index is up around 4%. We have the big banks in Indonesia, BBCA and BBRI, up around 4% to 8%. And the big telco, which should not have been down in a normal market anyway, that's up 14%.

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