Samsung Electronics Down, JD.com Bump, Marico Up

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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 Take a look at some of these stocks on the move today in Asia. I'm Caroline Hepkin. I'm joined by Bloomberg's markets reporter, Anthony Stephens. Good to speak to you, Anthony. The Tyrex and the Kospi are both down close to 4% today.

0:29 Why? Why?

0:31 We have a continued follow-on from the US sell-off where the details actually matter. The Nasdaq was quite bad, but there were some subsections of the Nasdaq that were horrendous. And most notably, that was in the semiconductor space. We had follow-on selling in Intel after its poor results. Marvell and Lumentum both got hammered after their mega deal. And it's that kind of data center play that is getting hit very hard in Taiwan. The breadth on the downside is quite astonishingly bad. It's glowing red. Over 80% of the stocks are down. And of the stocks that are down, you know, solid 20% of them are down more than 5%.

1:04 So it's a really bad day for Taiwan. Local retail is extremely leveraged in Taiwan. And they've opened a bunch of new accounts here near the highs and they're getting hit quite badly. most notably in names like Nanya Tech, Media Tech, the big ones, you know, ASE, all these names are down 8%. And in Korea, Samsung and Hynix are down 4% to 5%. So just across the board, tech is quite bad. Also, it's actually quite bad in the A shares. We can get into the internet names later, but the A share hardware names are down over 10% as you guys come in. especially the optical names related to the momentum deal. Zongji Inolite is down 12% as an example.

1:45 Yeah, absolutely.

1:45 I mean, European stock futures have declined or down about 1.2% this morning. So, it's also not expected to be a great day in Europe, although, as you say, not as bad as what we're seeing in Asia. But then on the other hand, lower oil prices do seem to be helping some parts of the Chinese market.

2:02 Yeah, and that has some glimmer of hope for the European situation. We see a lot of China's consumer-related names bouncing very hard here. Some of them are internet names because that is for the most part what Chinese internet does. JD.com is up around 4%. Meituan is up around a percent. Trip.com is up 5%. So a lot of these consumer-facing internet plays are quite strong, alongside consumer plays like Macau, which is bouncing after a long time.

2:27 It's up 5%.

2:28 And the Chinese sportswear manufacturers, Antal, Leaning, they're up 5% as well. Alongside, you know, pretty much every consumer name, China Among You Dairy, you know, Heidi Lau, whether you're talking about hot pot or milk, it's up.

2:42 Okay. Hot pot or milk. I like that. What about Indian stocks? Also doing well.

2:47 But actually, this creates something of a tough position for a lot of Asian investors.

2:51 Again, why is that?

2:54 India has been, you know, a consensus underweight. It's been really badly impacted by the higher oil price. It doesn't have an AI kicker to it. And people have been really underweight. Now, earning season has come in in India and it's been quite strong across the board, benefiting not just from Narendra Modi's infrastructure push but also the broadening out of the consumption base past the normal urban centers.

3:16 And we're seeing consumer names like Marico and ITC beat. Marico is up 7.5%. Obviously, the oil drop is a big kicker there. The banks up 2%. Bharti is up 2.2%. India is a position that very few people have, and it's benefiting from both the rotation out of Korea and Taiwan and from the lower oil price. So, this is a very uncomfortable underweight, especially if this market continues to go in the last two months of the year.

3:42 Okay. I think that's interesting. Last word on the U.S. midterms.

3:46 How do you think investors in Asia are going to be thinking about the sort of post-midterm fallout?

3:51 So I've done a lot of, you know, ringing the fences around the investor base today. And a lot of people are taking the books down, like this kind of drawdown right into that event. If you're thinking about formal risk management, professional risk management, you have to take the risk down. You're not gambling into that event after taking a markdown like what you've taken down today, right? Especially in the big markets, Korea, Taiwan. Japan's closed today, thankfully for them. And you've gotten hit in your shorts in India and China. So it's been a disastrous last couple of days for anybody taking institutional risk in equities. And they are not going to take a big punt on the election. They're taking books down. They'll watch the election

4:29 and then see what happens.

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