Samsung Electronics Sinks, PetroChina Up, Bank of China Boost

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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 Now, let's look at some of the stocks on the move today in Asia. I'm Caroline Hepkin, and we're joined by Bloomberg's markets reporter, Anthony Stevens. Anthony, I wanted to talk to you a little bit about what Elon Musk has been talking about, the AI debt market shut to neoclouds. Are traders paying attention to this?

0:34 Yeah, he's not satisfied with raising his own money, his $ 40 billion. He's saying that the market is closed to everybody else. Taking special exception to Neoclouds, he was replying on X to Chamath Palapitiya, who said that Neoclouds are disorganized and poorly capitalized. He came on top of that and said that they're going to have a guppy level amount of debt. And then when he got a question whether he's just trying to buy them up for cheap, He said, SpaceX was not buying any new clouds, dot, pointless, dot.

1:03 That really hit the space in Asia. which was feeling kind of vulnerable anyway to the near cloud kind of problem because the US was a really inconclusive session. So Samsung's down 1%, Advantest and the like are down 4% almost. And we're seeing some big moves actually in China because if the near clouds are in trouble, then the Chinese technology, which is even more lagging, are potentially in bigger trouble.

1:25 So you have steep losses from the likes of Lenovo, Yang's Optical. And there was also a failed kind of IPO where the IPO went off okay, but it was in the middle of the range in the printed circuit board makers. And that's hit most of the printed circuit board makers down around 3% to 4% as well. Okay.

1:43 Anthony, for anyone who doesn't know, what is Guppy?

1:45 What is a Guppy level? Well, you buy a bunch of fish and only three out of the 300 make it.

1:52 That's it exactly you get swallowed up all right just wanted to explain that for anyone who was scratching their heads about that uh elon musk reference uh in terms of oil once again driving the macro story in asia trading it would seem what's happening there Yeah.

2:07 No guppies there. It's all the big ones are up a lot. Ineos is up 3%, PetroChina up 5%, which is quite a big move. Itochu up 3%. And this comes as the Chinese in particular are asking their state-owned oil companies to do a better job of replenishing the reserves. Goldman also saying that fuel suppliers across the region are quite weak. We see Reliance small up in India as well on that theme. Woodside in Australia, small gains as well. So, this is the one theme that is bucking the regional trend, regional weakness. Follows on from the U.S. as well, where we saw very strong earnings out of the oil services names, especially Halliburton and the like. And that's reflected in Asia as well with Kossil, which actually missed trading up quite well,

2:51 up around 5% at the highs.

2:53 Okay.

2:53 Interesting.

2:54 I mean, there's lots to run through. What's happening in China?

2:57 So China heads into the fifth plenum, 26th to 29th. There is a lot of inter-party disciplinary stuff that's out of the way, but they're also pushing a lot on state-owned enterprises to do their part in lifting the country's economic growth and to reform and to technologically advance. And the market's taking that quite well, actually. So the HSI is outperforming the rest of the region, led by the big banks who potentially have the most fat to trim and the most upside from a kind of technology adoption approach.

3:27 So CCB, which is China Construction Bank, up 1%, ICBC up 2.5%, and Bank of China up 1%. This continues a quite long-running outperformance by the state side of the Chinese economy versus the private side. So that's a big retracement of the AI optimism and people going back to shelter in China's rock-solid state-owned enterprises. That, in turn, has made the AH premium come back to life. This is a concept that has gone to sleep for years. But basically, the A share... versions of the stocks that are listed in Hong Kong are now starting to trade up at a premium because people think and traders think that the local government is going to push ETFs on show hard while foreigners remain extremely skeptical in the Hong Kong market.

4:12 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.