April 23, 2025 • 17 mins
Asian stocks traded in a tight range Thursday as a global relief rally started to give up momentum after mixed signals from the Trump administration on its plans for China tariffs. A regional gauge of stocks swung between small gains and losses as market enthusiasm got curbed after Treasury Secretary Scott Bessent cast doubt on a timely resolution to the US-China trade war. That trimmed the S&P 500's gain Wednesday to 1.7%. The yen reversed two days of losses and the dollar weakened in early Asian trade. Gold jumped 1.4% in increased demand for the traditional safe-haven asset. Global equities and long-dated Treasuries rose on Wednesday on signs US President Donald Trump is rethinking the most-aggressive elements of his stances on trade and the Federal Reserve. We get reaction to the day's headlines from Mark Cranfield, Bloomberg MLIV Strategist in Singapore.
Plus - SK Hynix reported a 158% jump in March-quarter operating income, driven in part by stockpiling ahead of US tariffs, and maintained its forecast for a doubling in demand for high-bandwidth memory. The company warned of increased volatility in the second half of 2025 due to uncertainty surrounding US tariffs, despite resilient demand for AI memory chips from big tech providers. We hear from SK Kim, Executive Director at Daiwa Securities.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio News.
Speaker 2 (00:10):
Welcome to the Bloomberg Daybreak Asia Podcast. I'm Doug Chrisner.
Earlier today, US Treasury Secretary Scott Besson seemed to cast
doubt on a timely resolution to the US China trade war.
He said the White House had not offered to cut
tariffs on China on a unilateral basis now. Those remarks
came in response to a report indicating the US was
(00:31):
considering slashing levies on Chinese goods. The Wall Street Journal
reported in some cases, tariffs could be cut by more
than half. Prior to the report, China signaled it was
open to trade talks with the US. Here is Treasury
Secretary Besson speaking at an event hosted by the Institute
for International Finance in Washington.
Speaker 3 (00:51):
If China is serious on less dependence on export led
manufacturing growth and a rebalancing toward a domestic economy, I
think they use the term dual circulation. Well it's right now,
it's really singular circulation. And if they want to rebalance,
(01:12):
let's do it together.
Speaker 2 (01:13):
That is Treasury Secretary Bess. And he went on to
say a full rebalancing of trade might take two to
three years. Then later in the day after the closing bell,
President Trump said China may receive a new tariff right
in the next two to three weeks. Here's Trump.
Speaker 4 (01:29):
We're dealing with a lot of countries right now, and
it could be with China. But maybe we'll make a
special a deal and we'll see what it will be.
Right now, it's one hundred and forty five percent. That's
very high. It got there because of the fentanyl. They're
sending massive amounts of fentanyl into a country.
Speaker 2 (01:48):
At the same time, President Trump dismissed a report in
The Financial Times that he's planning to spare carmakers from
some of his most onerous tariffs. He told reporters he's
not considering change to tariffs on autos or on auto parts. Earlier,
The FT had reported a move is being considered to
exempt car parts from the tariffs on US imports from China,
(02:10):
but in place to counter fentanyl production. Now car makers
reportedly would also get a break from tariffs on steel
and aluminum. For more, we heard from Bloomberg m Live
market strategist Mark Cranfield. He spoke with Bloomberg's Paul Allen
and Marcson.
Speaker 5 (02:26):
More soothing rhetoric coming out of the Oval Office today,
and we did see the US dollar strengthen stocks rally
as well. But considering how dependent markets seem to be
on newsflow at the moment, how sustainable does this rally look?
Speaker 6 (02:40):
Not very? I would suggest chaotic conditions are not what
investors need, particularly if you're a medium term, long term
portfolio manager. You need things to be a little bit clearer.
Colleague in New York, Cameron Christ was writing overnight that
the realized volatility on the S and P five hundred
is getting close to sixty percent. We've never seen those
(03:02):
kind of levels except during the global financial crisis and
the Wall Street crash in the nineteen thirties, So that
shows you how extreme these kind of day to day
swings are that we're seeing in the most important financial
index in the world.
Speaker 3 (03:17):
Now.
Speaker 6 (03:18):
The only way for this to resolve itself is either
we go through a quiet period a few weeks of
limited trading where volatility gradually dies because the ranges are smaller,
or the market needs have declined substantially to take out
that extreme level of volatility. One or the other needs
to happen. And when you see that, the trade talks
(03:40):
so far have been pretty inconclusive. There seems to be
a lot of changing of mind about what they mean
where they're going to be imposed. Investors are not going
to take this well. They're going to take a defensive approach,
and that likely means that US equities need to decline further.
That will be the outcome that resolves this extreme period
price action, which cannot is unsustainable. It cannot go on
(04:04):
like this without big things breaking, and the way for
that to happen is for money to gradually ease out
of the markets and for US markets to lose their
premium over the rest of the world. We already begin
to see flows into Europe, into China, parts of Asia.
That is likely to continue, and the result also will
lead to a weaker US dollar as well. Even though
(04:26):
mister Besson might not have a clear target for the
yen himself, financial markets seems to have decided. Investors seem
to prefer the idea that the US dollar is still
overvalued and it needs to adjust, with the yend, the
euro and the Swiss frank the main beneficiaries of that.
That is likely to continue for a while. So this
theme of sell American assets looks as though it still
(04:50):
has quite a way to play out unless we have
a very quick resolution to all the trade talks, which
doesn't seem to be on the cards for now.
Speaker 5 (05:00):
Certainly, UBS is out with a note today as well,
with the dollar weakness continuing to be a theme there.
Although we have seen yields on some of these longer
dated US notes starting to fall a little. Pimco saying
they're looking attractive. What messages the bond market sending.
Speaker 6 (05:15):
Here instead a very mixed signal. I mean to be honest,
Investors listening to this wouldn't expect anything else from Pimco.
Pimco is a fixed income fan manager. What else are
they going to do with their money apart from buy bond,
so you would expect them to be supporting the market.
Steepening of the curve is the bigger theme Here's flattened
slightly this week, but every US Treasury auction continues to
(05:40):
be a landmine. We have a big one coming up
next week, which is a ten year auction. To get through,
every auction this week has been pretty dice. They've had
to cheapen up the yields, even the five year last night,
which is usually a very easy one to sell. They
had to squeeze some extra yield out of the market
to make it go through. There's a seven year tonight,
which is going to be pretty tricky as well. Foreign
(06:00):
investors are the key to this, and that's where people
will get the idea whether they really support the US
yield curve or not. Most likely they will stand back
until yields are very attractive and the curve is much
deeper to compensate them. For the fact that if the
US continues on this policy path, investors will be expecting
the major rating agencies to downgrade the United States. It
(06:24):
seems inevitable that there will have to be. The fiscal
situation of the States is unsustainable, the trade situation is unsustainable.
They need to stop the growth. The growth projections in
the United States are getting lower and lower. That means
that it will affect the credit rating. People are starting
to price that in and the simple way to do
(06:44):
that is to steepen the US Treasury curve, which ultimately
means that long en yields will need to go higher.
Speaker 5 (06:51):
We also heard some remarks from President Trump about j
Powder Day. Of course, it was twenty four hours ago
that he said that he had no intention to fire Jaypowell,
and now Trump's saying, look, he might pick up the
phone and call him regarding rates. I mean, it's a
bit of a tightrope act here for the Fed chare.
That does suggest though, that the two haven't spoken yet.
(07:13):
What's the path ahead for Japowell here? How does he react?
Speaker 6 (07:17):
It's an extremely difficult situation for everybody at the Federal Reserve.
When you have the President speaking so often, it's a
very unusual situation. People in the Central Bank in the
United States are not used to almost daily messaging coming
from the White House. They're usually left alone to do
their job, set monetary policy, and once in a while
they report to Congress, usually twice a year, to give
(07:39):
them an update. That's usually as far as it goes.
The big question for investors is the independence of the
Central Bank in the United States. So far, President Trump
has not addressed that at all. He speaks about mister
Powell on a personal level, he does not speak about
wanting to sustain Federal Reserve independence. That is what investors
(08:00):
want to see. That's what they have been relying on
for years and years. If they don't get that clarification again,
it will mean there has to be a discount for
US assets, particularly for treasuries and the US dollar, because
that is where foreign money assesses every country based on
partly whether the central Bank can make decisions for monetary
(08:22):
policy based on the data it sees, not by looking
over its shoulder to see whether President thinks it's good
or bad. Foreign investors need that clarity and reassurance that
the Federal Reserve can make its decisions based on the
data it sees and do its job for the time being.
That is not a clear outcome.
Speaker 2 (08:41):
That's Bloomberg Market Live strategist Mark Cranfield there in conversation
with Bloomberg's Paul Allen here on the Daybreak Asia podcast.
Welcome back to the Daybreak Asia podcast. I'm Doug Chrisner.
Earnings this morning from the South Korean chip maker s
(09:02):
k Heinez, the company's operating profits soared by one hundred
and fifty eight percent. Now, this reflects a global race
in AI as well as a stockpiling ahead of US
tariffs of both advanced chips and memory chips used in
both PCs and smartphones. We heard earlier from sk Kim,
the executive director at Diewah Securities. Here's mister Kemon conversation
(09:26):
with Bloomberg's Paul Allen in Sydney, s K.
Speaker 5 (09:30):
A blow out set of numbers here. I just want
to stop by getting your initial response to what we've
seen this morning.
Speaker 2 (09:36):
Yeah, yeah, s K.
Speaker 1 (09:37):
Heinez announce some the upbit the market expectations. So I
think that the upside is coming from dram so especially
the pischiment. Growth of the extra reserve is higher than
previous to company's guide them so, which means that we
(09:59):
did the more stage of the high valued product such
as the HPM and d DR five. But on the
other hand, land flash business remain weak.
Speaker 3 (10:10):
Uh.
Speaker 7 (10:11):
You think in line with the our our market estimate,
how much of what we have seen today can you
put down the front loading and around fear about the
tariff uncertainty.
Speaker 5 (10:24):
Least sorts of numbers are going to be sustainable in
future quarters as the clouds around the trade will gathered.
Speaker 2 (10:31):
Yeah.
Speaker 1 (10:32):
Clearly there's some food in demand from the terraf terrafy issue,
but also at the same time there is some additional
demand from the deep sick uh in the demand from
China and also the China government. Uh, the similar measure.
Speaker 7 (10:48):
Uh, that is some Uh.
Speaker 1 (10:50):
Yeah, we see some the higher demand for commodity memory
uh and uh yeah, I'll call you to the company
is the data point they already guided for the higher
shipment growth for the second quarter. It's almost double digit
growth for both dam and land flesh, so, which means
the power with the strong resarch will continue in the
(11:15):
second quarter as well.
Speaker 5 (11:17):
Certainly, under normal circumstances that increased demand from China would
seem encouraging. But considering that the changes that we're seeing
on trade and tariffs and the news flow that comes
out of the White House is quite unpredictable at the moment,
how challenging is it to make accurate forecasts about future
quarters for Eskeheinix and other chip makers as well.
Speaker 1 (11:39):
Yeah yeah, yeah, that's correct, Yeah, but very reasonally. We
see some concerns on the therapy was e g H
and also some you know, AI demand seems to remain
so originally AI demand, Uh, it's a little bit uh
(12:02):
you know, uh uh safe from the there's a therapy
issue because of even the there's the AI demanders now
it is from everywhere. Uh and yeah, so the concern
is more about some you know, the second half. Uh,
it's for the commodity side, because of which is an
(12:23):
unexpected uh you know demand uh concentrated in the commodity
to even but HPM UH is a you know, the
Heenechs have leading they're reading in h pm, so they're
relatively uh their lavine portion of HPM is way higher
than other supplier. Uh so in their perspective. So the
(12:47):
s K highexes I think they're owning and performance we're
a rather depending on the AI, which means uh some
loadmap of the NBDIA GV three hundred which are used
uh you know, twelve high HPM three product. And also
i'd rather see some potential riskers from some experts control
(13:09):
from the US government. Uh And yeah, and relatively we
can over our we can say that the AI demand
is a US as a lot of comport over and
more uh you know, bits over compared with the commodity
design in previously.
Speaker 5 (13:28):
Definitely, the story around the AI driven demand seems very robust.
But you mentioned that d RAM a little bit earlier.
How about d RAM demands it's connected to some of
those more traditional markets like uh PCs and smartphones. How
do you see demand on that sector.
Speaker 3 (13:44):
Yeah.
Speaker 1 (13:44):
So over the PC smartphone demand demand remain uh. It's
a week uh as we can say it's a stable,
it's not as strong. But this year clearly the replacement
cycle for p se uh from because of the window
microsoftware stop supplying support for the window ten. So we
(14:08):
already see some signal of the replacement cycle demand from
the PC UH and the smart phone. The smart phone
is a little bit the Questo map, but I think
that the iPhone UH this year Apple, while there's uncertainty
in you know U s, but the you know Apple
(14:31):
is working with the Chinese local uh you know AI
companies such as Ali Baba and the preparing AI uh
the models the China markets. So that with resulting the
higher shipment and also h some some you know the
positive numbers from Chinese smartphone maker early this year. Uh
(14:53):
So yeah, some some AI only device AI demand UH
caustiously anticipate late this year, but we see the more
viability in the piece side.
Speaker 5 (15:04):
Now, SK before we let you go, I just want
to get your thoughts on the share price artwork for
sk Heinex. Person. If we take a look at this
performance over the past year, it's been a wild ride,
but it's essentially flat on. Yeah, we've got short selling
of s k Heinex at a record. What's your price
(15:25):
target for the stock?
Speaker 1 (15:27):
Yeah, our target price is two hundred and sixty seven
thousand and one, so we still see some upside closed,
it's way higher than like more more than forty percent.
The reason that the weaknesses come from the the short
selling band in Korea, some short selling from the end
(15:51):
of March, and also the one of the reasons is
that the shurt price of Micron is a kick competitors
in the ASTA. Micron share price is down so much
so now the valuation gap between Skinich and Micron it's
quite narrow narrowing, so that is kind of pressure on
the subprice. Uh until now, but uh kiss, they show
(16:18):
that it's a strong awning uh performance, it's based on
the it's a leadership and then yeah, according to the
some research from the sk Heinich they achieved number one
market share position in dram you know reason today. So yeah,
if if we see if there is some say uncertainty
(16:41):
is there and maybe Korean government in the US government,
they would uh yeah, discuss on the traffic maybe tomorrow.
So we will see, but hopefully uh some the better
uh situation for the semiconductor industry. And then I think
there's offside in the show, right, there's a buying opportunity
(17:03):
of investors, all.
Speaker 5 (17:05):
Right, ts k I will have to leave it there.
Thanks so much for joining us. That is Skkim, executive
director and analysts at Die with Securities.
Speaker 2 (17:14):
Thanks for listening to today's episode of the Bloomberg Daybreak
Asia Edition podcast. Each weekday, we look at the story
shaping markets, finance, and geopolitics in the Asia Pacific. You
can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
or anywhere else you listen. Join us again tomorrow for
insight on the market moves from Hong Kong to Singapore
(17:37):
and Australia. I'm Doug Prisoner and this is Bloomberg
Bloomberg Audio Studios, podcasts, radio News.
Speaker 2 (00:10):
Welcome to the Bloomberg Daybreak Asia Podcast. I'm Doug Chrisner.
Earlier today, US Treasury Secretary Scott Besson seemed to cast
doubt on a timely resolution to the US China trade war.
He said the White House had not offered to cut
tariffs on China on a unilateral basis now. Those remarks
came in response to a report indicating the US was
(00:31):
considering slashing levies on Chinese goods. The Wall Street Journal
reported in some cases, tariffs could be cut by more
than half. Prior to the report, China signaled it was
open to trade talks with the US. Here is Treasury
Secretary Besson speaking at an event hosted by the Institute
for International Finance in Washington.
Speaker 3 (00:51):
If China is serious on less dependence on export led
manufacturing growth and a rebalancing toward a domestic economy, I
think they use the term dual circulation. Well it's right now,
it's really singular circulation. And if they want to rebalance,
(01:12):
let's do it together.
Speaker 2 (01:13):
That is Treasury Secretary Bess. And he went on to
say a full rebalancing of trade might take two to
three years. Then later in the day after the closing bell,
President Trump said China may receive a new tariff right
in the next two to three weeks. Here's Trump.
Speaker 4 (01:29):
We're dealing with a lot of countries right now, and
it could be with China. But maybe we'll make a
special a deal and we'll see what it will be.
Right now, it's one hundred and forty five percent. That's
very high. It got there because of the fentanyl. They're
sending massive amounts of fentanyl into a country.
Speaker 2 (01:48):
At the same time, President Trump dismissed a report in
The Financial Times that he's planning to spare carmakers from
some of his most onerous tariffs. He told reporters he's
not considering change to tariffs on autos or on auto parts. Earlier,
The FT had reported a move is being considered to
exempt car parts from the tariffs on US imports from China,
(02:10):
but in place to counter fentanyl production. Now car makers
reportedly would also get a break from tariffs on steel
and aluminum. For more, we heard from Bloomberg m Live
market strategist Mark Cranfield. He spoke with Bloomberg's Paul Allen
and Marcson.
Speaker 5 (02:26):
More soothing rhetoric coming out of the Oval Office today,
and we did see the US dollar strengthen stocks rally
as well. But considering how dependent markets seem to be
on newsflow at the moment, how sustainable does this rally look?
Speaker 6 (02:40):
Not very? I would suggest chaotic conditions are not what
investors need, particularly if you're a medium term, long term
portfolio manager. You need things to be a little bit clearer.
Colleague in New York, Cameron Christ was writing overnight that
the realized volatility on the S and P five hundred
is getting close to sixty percent. We've never seen those
(03:02):
kind of levels except during the global financial crisis and
the Wall Street crash in the nineteen thirties, So that
shows you how extreme these kind of day to day
swings are that we're seeing in the most important financial
index in the world.
Speaker 3 (03:17):
Now.
Speaker 6 (03:18):
The only way for this to resolve itself is either
we go through a quiet period a few weeks of
limited trading where volatility gradually dies because the ranges are smaller,
or the market needs have declined substantially to take out
that extreme level of volatility. One or the other needs
to happen. And when you see that, the trade talks
(03:40):
so far have been pretty inconclusive. There seems to be
a lot of changing of mind about what they mean
where they're going to be imposed. Investors are not going
to take this well. They're going to take a defensive approach,
and that likely means that US equities need to decline further.
That will be the outcome that resolves this extreme period
price action, which cannot is unsustainable. It cannot go on
(04:04):
like this without big things breaking, and the way for
that to happen is for money to gradually ease out
of the markets and for US markets to lose their
premium over the rest of the world. We already begin
to see flows into Europe, into China, parts of Asia.
That is likely to continue, and the result also will
lead to a weaker US dollar as well. Even though
(04:26):
mister Besson might not have a clear target for the
yen himself, financial markets seems to have decided. Investors seem
to prefer the idea that the US dollar is still
overvalued and it needs to adjust, with the yend, the
euro and the Swiss frank the main beneficiaries of that.
That is likely to continue for a while. So this
theme of sell American assets looks as though it still
(04:50):
has quite a way to play out unless we have
a very quick resolution to all the trade talks, which
doesn't seem to be on the cards for now.
Speaker 5 (05:00):
Certainly, UBS is out with a note today as well,
with the dollar weakness continuing to be a theme there.
Although we have seen yields on some of these longer
dated US notes starting to fall a little. Pimco saying
they're looking attractive. What messages the bond market sending.
Speaker 6 (05:15):
Here instead a very mixed signal. I mean to be honest,
Investors listening to this wouldn't expect anything else from Pimco.
Pimco is a fixed income fan manager. What else are
they going to do with their money apart from buy bond,
so you would expect them to be supporting the market.
Steepening of the curve is the bigger theme Here's flattened
slightly this week, but every US Treasury auction continues to
(05:40):
be a landmine. We have a big one coming up
next week, which is a ten year auction. To get through,
every auction this week has been pretty dice. They've had
to cheapen up the yields, even the five year last night,
which is usually a very easy one to sell. They
had to squeeze some extra yield out of the market
to make it go through. There's a seven year tonight,
which is going to be pretty tricky as well. Foreign
(06:00):
investors are the key to this, and that's where people
will get the idea whether they really support the US
yield curve or not. Most likely they will stand back
until yields are very attractive and the curve is much
deeper to compensate them. For the fact that if the
US continues on this policy path, investors will be expecting
the major rating agencies to downgrade the United States. It
(06:24):
seems inevitable that there will have to be. The fiscal
situation of the States is unsustainable, the trade situation is unsustainable.
They need to stop the growth. The growth projections in
the United States are getting lower and lower. That means
that it will affect the credit rating. People are starting
to price that in and the simple way to do
(06:44):
that is to steepen the US Treasury curve, which ultimately
means that long en yields will need to go higher.
Speaker 5 (06:51):
We also heard some remarks from President Trump about j
Powder Day. Of course, it was twenty four hours ago
that he said that he had no intention to fire Jaypowell,
and now Trump's saying, look, he might pick up the
phone and call him regarding rates. I mean, it's a
bit of a tightrope act here for the Fed chare.
That does suggest though, that the two haven't spoken yet.
(07:13):
What's the path ahead for Japowell here? How does he react?
Speaker 6 (07:17):
It's an extremely difficult situation for everybody at the Federal Reserve.
When you have the President speaking so often, it's a
very unusual situation. People in the Central Bank in the
United States are not used to almost daily messaging coming
from the White House. They're usually left alone to do
their job, set monetary policy, and once in a while
they report to Congress, usually twice a year, to give
(07:39):
them an update. That's usually as far as it goes.
The big question for investors is the independence of the
Central Bank in the United States. So far, President Trump
has not addressed that at all. He speaks about mister
Powell on a personal level, he does not speak about
wanting to sustain Federal Reserve independence. That is what investors
(08:00):
want to see. That's what they have been relying on
for years and years. If they don't get that clarification again,
it will mean there has to be a discount for
US assets, particularly for treasuries and the US dollar, because
that is where foreign money assesses every country based on
partly whether the central Bank can make decisions for monetary
(08:22):
policy based on the data it sees, not by looking
over its shoulder to see whether President thinks it's good
or bad. Foreign investors need that clarity and reassurance that
the Federal Reserve can make its decisions based on the
data it sees and do its job for the time being.
That is not a clear outcome.
Speaker 2 (08:41):
That's Bloomberg Market Live strategist Mark Cranfield there in conversation
with Bloomberg's Paul Allen here on the Daybreak Asia podcast.
Welcome back to the Daybreak Asia podcast. I'm Doug Chrisner.
Earnings this morning from the South Korean chip maker s
(09:02):
k Heinez, the company's operating profits soared by one hundred
and fifty eight percent. Now, this reflects a global race
in AI as well as a stockpiling ahead of US
tariffs of both advanced chips and memory chips used in
both PCs and smartphones. We heard earlier from sk Kim,
the executive director at Diewah Securities. Here's mister Kemon conversation
(09:26):
with Bloomberg's Paul Allen in Sydney, s K.
Speaker 5 (09:30):
A blow out set of numbers here. I just want
to stop by getting your initial response to what we've
seen this morning.
Speaker 2 (09:36):
Yeah, yeah, s K.
Speaker 1 (09:37):
Heinez announce some the upbit the market expectations. So I
think that the upside is coming from dram so especially
the pischiment. Growth of the extra reserve is higher than
previous to company's guide them so, which means that we
(09:59):
did the more stage of the high valued product such
as the HPM and d DR five. But on the
other hand, land flash business remain weak.
Speaker 3 (10:10):
Uh.
Speaker 7 (10:11):
You think in line with the our our market estimate,
how much of what we have seen today can you
put down the front loading and around fear about the
tariff uncertainty.
Speaker 5 (10:24):
Least sorts of numbers are going to be sustainable in
future quarters as the clouds around the trade will gathered.
Speaker 2 (10:31):
Yeah.
Speaker 1 (10:32):
Clearly there's some food in demand from the terraf terrafy issue,
but also at the same time there is some additional
demand from the deep sick uh in the demand from
China and also the China government. Uh, the similar measure.
Speaker 7 (10:48):
Uh, that is some Uh.
Speaker 1 (10:50):
Yeah, we see some the higher demand for commodity memory
uh and uh yeah, I'll call you to the company
is the data point they already guided for the higher
shipment growth for the second quarter. It's almost double digit
growth for both dam and land flesh, so, which means
the power with the strong resarch will continue in the
(11:15):
second quarter as well.
Speaker 5 (11:17):
Certainly, under normal circumstances that increased demand from China would
seem encouraging. But considering that the changes that we're seeing
on trade and tariffs and the news flow that comes
out of the White House is quite unpredictable at the moment,
how challenging is it to make accurate forecasts about future
quarters for Eskeheinix and other chip makers as well.
Speaker 1 (11:39):
Yeah yeah, yeah, that's correct, Yeah, but very reasonally. We
see some concerns on the therapy was e g H
and also some you know, AI demand seems to remain
so originally AI demand, Uh, it's a little bit uh
(12:02):
you know, uh uh safe from the there's a therapy
issue because of even the there's the AI demanders now
it is from everywhere. Uh and yeah, so the concern
is more about some you know, the second half. Uh,
it's for the commodity side, because of which is an
(12:23):
unexpected uh you know demand uh concentrated in the commodity
to even but HPM UH is a you know, the
Heenechs have leading they're reading in h pm, so they're
relatively uh their lavine portion of HPM is way higher
than other supplier. Uh so in their perspective. So the
(12:47):
s K highexes I think they're owning and performance we're
a rather depending on the AI, which means uh some
loadmap of the NBDIA GV three hundred which are used
uh you know, twelve high HPM three product. And also
i'd rather see some potential riskers from some experts control
(13:09):
from the US government. Uh And yeah, and relatively we
can over our we can say that the AI demand
is a US as a lot of comport over and
more uh you know, bits over compared with the commodity
design in previously.
Speaker 5 (13:28):
Definitely, the story around the AI driven demand seems very robust.
But you mentioned that d RAM a little bit earlier.
How about d RAM demands it's connected to some of
those more traditional markets like uh PCs and smartphones. How
do you see demand on that sector.
Speaker 3 (13:44):
Yeah.
Speaker 1 (13:44):
So over the PC smartphone demand demand remain uh. It's
a week uh as we can say it's a stable,
it's not as strong. But this year clearly the replacement
cycle for p se uh from because of the window
microsoftware stop supplying support for the window ten. So we
(14:08):
already see some signal of the replacement cycle demand from
the PC UH and the smart phone. The smart phone
is a little bit the Questo map, but I think
that the iPhone UH this year Apple, while there's uncertainty
in you know U s, but the you know Apple
(14:31):
is working with the Chinese local uh you know AI
companies such as Ali Baba and the preparing AI uh
the models the China markets. So that with resulting the
higher shipment and also h some some you know the
positive numbers from Chinese smartphone maker early this year. Uh
(14:53):
So yeah, some some AI only device AI demand UH
caustiously anticipate late this year, but we see the more
viability in the piece side.
Speaker 5 (15:04):
Now, SK before we let you go, I just want
to get your thoughts on the share price artwork for
sk Heinex. Person. If we take a look at this
performance over the past year, it's been a wild ride,
but it's essentially flat on. Yeah, we've got short selling
of s k Heinex at a record. What's your price
(15:25):
target for the stock?
Speaker 1 (15:27):
Yeah, our target price is two hundred and sixty seven
thousand and one, so we still see some upside closed,
it's way higher than like more more than forty percent.
The reason that the weaknesses come from the the short
selling band in Korea, some short selling from the end
(15:51):
of March, and also the one of the reasons is
that the shurt price of Micron is a kick competitors
in the ASTA. Micron share price is down so much
so now the valuation gap between Skinich and Micron it's
quite narrow narrowing, so that is kind of pressure on
the subprice. Uh until now, but uh kiss, they show
(16:18):
that it's a strong awning uh performance, it's based on
the it's a leadership and then yeah, according to the
some research from the sk Heinich they achieved number one
market share position in dram you know reason today. So yeah,
if if we see if there is some say uncertainty
(16:41):
is there and maybe Korean government in the US government,
they would uh yeah, discuss on the traffic maybe tomorrow.
So we will see, but hopefully uh some the better
uh situation for the semiconductor industry. And then I think
there's offside in the show, right, there's a buying opportunity
(17:03):
of investors, all.
Speaker 5 (17:05):
Right, ts k I will have to leave it there.
Thanks so much for joining us. That is Skkim, executive
director and analysts at Die with Securities.
Speaker 2 (17:14):
Thanks for listening to today's episode of the Bloomberg Daybreak
Asia Edition podcast. Each weekday, we look at the story
shaping markets, finance, and geopolitics in the Asia Pacific. You
can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
or anywhere else you listen. Join us again tomorrow for
insight on the market moves from Hong Kong to Singapore
(17:37):
and Australia. I'm Doug Prisoner and this is Bloomberg
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