SK Hynix Drops, BHP Slides, Enflame Jumps

0:00brought to you by Apple Card. Apply for Apple Card and earn daily cash back on back to school purchases, including 3% back on everything at Apple. Subject to credit approval, Apple Card is issued by Goldman Sachs Bank USA Salt Lake City Branch, terms and more at Applecard.com. Bloomberg Audio Studios Podcasts, Radio, News The Stock Movers Report, your round up of companies making moves in the stock market, harnessing the power of Bloomberg data. Now, let's look at some of the stocks on the moves day in Asia. I'm Caroline Hepkin. I'm joined by Bloomberg Market's reporter, Winnie Sue. When he good morning, what has been the impact of deep seeks new model? I know it's moving in a number of stocks where you are. Yeah, it's quite an interesting development because what's so special about this model, the V4.1 Flash model from deep seek is two things. One is that it is more efficient. And second, it is that it is cheaper. So overall, it claims that the performance is better than the likes of moon shots,

1:05Kimi K3, although still not as good as what OpenAI and Thropic offers. Now, when it comes to the cost, it says that it's charging just as little as a fraction of a cent per million tokens. And the fact that it's so cheap is actually hurting some of these AI labs in China, the likes of Minimax and Jupu extending losses for a second day. And this is because it's basically driving further price competition among these companies. So the price war is really not coming to an end at all. Now, on the efficiency side of the equation, it is efficient because it only requires one fourth of the high bandwidth memory. And because of that, you are seeing memory chip stocks, the likes of SK high exempts electronics being the top decliners or the top contributor to the losses in Asia today, given that some investors are worried about the overall demand for these chip makers.

2:05However, I have to say that longer term, most investors are pointing to how this efficiency and the cheap side of it can actually mean further adoption of these models. So potentially the demand will still remain quite strong in the longer term. It's just that there's a lot of macro headwinds for these tech stocks. Yeah, okay. So that's on the tech space. Copper, I mean, this is interesting. It has been rallying really hard. But now this week, it may sit first, lost since June. And all of this is around how people were positioning because of US tariffs. What's been the result in Asia? Yeah, exactly. So as you mentioned, copper has been really rallying, but we saw that the metal was down more than 3% on Thursday. So it's on the concerns about how the US might be pushing back their decision, whether to impose the import tariffs or not. And what we've learned from the media report is that the officials are basically raising

3:10some concern about how the higher copper prices locally could mean higher manufacturing costs. And that basically goes against the purpose or the benefits of encouraging more domestic mining. So that's why you're seeing that the trend and copper prices really reversing. And that's hitting lots of these copper related stocks in Asia, specifically in Australia, Rio Tinto and BHP, both down about 3% to 4% and even in Japan, Sumiton Momentum mining also down about 7%. Yeah. Just lastly, stronger yen, weaker dollar, what is the fallout? You've been writing about this today. The yen rallying means that it puts global stocks on watch just briefly. Why? Yeah, so I think the, so for Japanese stocks, the major concern is that it might be weighing on earning specifically for exporters when they translate their profits from US dollar back

4:15into the Japanese yen. So that's the biggest, biggest risk that we are seeing in the equity space. However, people are mentioning how it reminds them of the meltdown we saw back in 2024. When we saw the unwinding of the carry trade really having a spill over effect on global equities, when investors have to pair back some of their yen bets and they are doing that by cutting their exposure in the top performing stocks and positions that they have. And this time around tech stocks, especially Eskihinics, Samsung Electronics, for example, these that have been rallying and also have higher liquidity are under further pressure. But the key point is that this time can be quite different from back in 2024 when we have a very different environment when now there's a lot more priced in for the Bank of Japan to raise rates. This 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,

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