00:00Really dramatic moves this morning. Yeah I almost don't know what to tell you Lizzie. I mean we started the
00:07day already on the back foot following on from Samsung's preliminary earnings which by the way were a beat and
00:13then the losses just accelerated. It was almost like it was downhill from there. Leverage ETFs no doubt playing that
00:19role in exacerbating the swings. But we've also seen these circuit breakers being rolled out in South Korea.
00:26Even the Thai X which started the day in the green is in negative territory. That being said you are
00:32seeing some bright spots in the region perhaps helping to cap some of the declines you're seeing on the region's
00:37benchmark in the form of Japanese South Korean financial stocks as well as Chinese internet names including Tencent and Meituan.
00:44For the boy let's rake through what we're seeing on the memory makers. So Samsung 19 fold surge in profit
00:51right. And it was almost like it was you know getting this curse the same way as Nvidia did in
00:57that it beats but it fails to impress investors.
01:00Maybe some of this was already because investors knew that following on from micron pricing demand that would look good
01:07for the full picture for memory names. We'll have to wait for SK Hynix towards the end of the month.
01:12And we are seeing these really steep declines for the moment. Consider as well the market dynamics for the likes
01:19of South Korea for example as some of our colleagues have been highlighting this month it's like the buy the
01:24dip impulse among South Korean retail investors has evaporated.
01:29So that's certainly not helping. And then as well this week we have that SK Hynix USADR. That's going to
01:35be massive when it comes online on Friday. That could also have the effect of exacerbating the concerns that overall
01:42these AI valuations are overstretched. So it looks really bad today. Lizzie.
01:48Okay. Averill thank you for the update. That's Averill Hong in Singapore. And over on Wall Street the roller coaster
01:53continues as well. NASDAQ futures as I say pointing to a lower open after a positive day yesterday.
01:59Let's go to Bloomberg MLive strategist Mark Cranfield for more. Mark I do have to wonder how far the fallout
02:06is going to reach from those Samsung earnings around the world cross asset.
02:13It's certainly going to be a wake up call for Wall Street because they're just starting their earnings season and
02:18they might be pretty put off by the idea that you've got a company like Samsung with such tremendous numbers
02:23on the surface and yet the stock is declining very heavily.
02:26So when you think of the big tech companies coming up in the United States investors will probably be saying
02:31wow are we in for the similar kind of treatment where some of the stocks which have performed pretty well
02:37maybe it's all priced in and it would need something really extraordinary in the profit numbers to keep going.
02:43So certainly that will be a bit of a warning and we're likely to see at least a negative start
02:48in the U.S.
02:49Of course the conditions are not exactly the same. It may well be that this SK Hynix ADR is distorting
02:56the situation in Korea which doesn't necessarily mean it's going to be so bad for the U.S. market.
03:01People may well be allocating funds away from the Korean stocks to play in the U.S. listings which are
03:07coming up and they're very big.
03:09It's a large amount of money potential for relatively quick gains there because it may be underpriced initially and so
03:15people may well be using it as a trading opportunity.
03:18Once it's out the way they may switch back to normal conditions and go back into the Korean market.
03:23But in the near term certainly that ADR is a big headwind.
03:25How much that really means for Wall Street we'll have to wait and see but certainly as Avril was saying
03:31we've seen before NVIDIA can produce very good results and still the price of the shares can come down.
03:38Not always as much as we're seeing for Samsung today a 10% decline is pretty dramatic but certainly it's
03:42a wake-up call and Wall Street will be on edge when it starts later today.
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