Asian Stocks Hit Record as Iran Fears Ease | The China Show 5/4/2026

Watch on YouTube ↗  |  May 04, 2026 at 05:43  |  1:32:54  |  Bloomberg Markets
Speakers
Eugene Hsiao — Head of Research, Blockworks
David Savage — Editor, The Block

Summary

Asian stocks hit a record high as Iran fears ease, driven by a tech rally in Taiwan, Korea, and Hong Kong. The show covers China equity strategy focusing on AI upstream plays (chip equipment, data centers, lithium), auto export strength in BYD and Geely, and fixed income views favoring Asian high yield and US MBS. Geopolitical topics include the Strait of Hormuz situation, Japan-Australia ties, Taiwan's defense budget, and a Chinese court ruling on AI replacing workers.

  • Asian equities reach new highs led by tech, with Taiwan and Korea surging.
  • Oil stabilizes above $105 after US offers to guide ships through Hormuz.
  • Macquarie's Eugene Hsiao recommends Chinese chip equipment and upstream AI infrastructure (BABA, GDS, QSL).
  • BYD and Geely highlighted as key export beneficiaries in China's auto sector.
  • UBP's Anitza Nip favors Asian high yield bonds for carry and US mortgage-backed securities for diversification.
  • Japan PM Takaichi visits Australia to strengthen defense and critical minerals ties.
  • Taiwan's defense budget debate raises concerns ahead of Trump-Xi summit.
  • China court rules companies cannot fire workers solely to replace them with AI.
Trade Ideas
Eugene Hsiao Head of Research, Blockworks 14:10
China chip equipment structural bottleneck.
Chinese chip equipment companies benefit from structural bottlenecks and consistent government support for self-sufficiency in semiconductors, making them a preferred upstream play.
Chinese chip equipment sector MED
Eugene Hsiao Head of Research, Blockworks 15:06
Alibaba as infrastructure play.
Alibaba (BABA) is being re-rated as an infrastructure play in China's AI buildout, with strong policy support for upstream data centers and cloud, distinct from traditional e-commerce exposure.
BABA MED
Eugene Hsiao Head of Research, Blockworks 15:06
Data center play long.
GDS Holdings (GDS) is a direct beneficiary of China's data center buildout, which is a government-backed upstream focus in the AI self-sufficiency cycle.
GDS MED
Eugene Hsiao Head of Research, Blockworks 15:06
Lithium energy upstream play.
QSL (lithium energy company) is an upstream play on China's energy storage and battery supply chain, benefiting from structural policy support for self-sufficiency.
QSL MED
Eugene Hsiao Head of Research, Blockworks 27:41
BYD and Geely export strong.
BYD and Geely are the key beneficiaries of China's auto export boom, with year-to-date export growth of ~60% for BYD and ~150% for Geely, while domestic price competition is stabilizing.
BYD GEELY MED
Anitza Nip 55:58
Asian high yield for carry.
Asian high yield bonds offer attractive carry in a stable rate environment, with limited supply supporting credit spreads and strong demand from investors.
Asian high yield bonds MED
Anitza Nip 57:01
US mortgage-backed securities diversifier.
US mortgage-backed securities (MBS) provide a yield advantage and portfolio diversification versus straight Treasuries, especially given the stable rate outlook.
MBB MED
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This Bloomberg Markets video, published May 04, 2026, features Eugene Hsiao, Anitza Nip discussing Chinese chip equipment sector, BABA, GDS, QSL, BYD, GEELY, Asian high yield bonds, MBB. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Eugene Hsiao, Anitza Nip  · Tickers: Chinese chip equipment sector, BABA, GDS, QSL, BYD, GEELY, Asian high yield bonds, MBB