TSMC Reignites AI Fervor; Taiwan Secures US Trade Deal | The Asia Trade 1/16/2026

Watch on YouTube ↗  |  January 16, 2026 at 05:46  |  1:34:18  |  Bloomberg Markets
Speakers
Paul Dobson — Executive Editor, Bloomberg
Neil — Financials Analyst, Bloomberg Intelligence
Wendell Huang — Vice President and CFO, TSMC
Jasmine Duan — Senior Investment Strategist, RBC Wealth Management Asia
Steven Chu — FX Strategist
Annabel Droulers — Anchor, Bloomberg TV
Michael Dang — Geoeconomics Technology Analyst
Avril Hong — Reporter, Bloomberg Markets
Jacob Cooke — CEO, WPIC
Stephen Engle — Chief North Asian Correspondent, Bloomberg
Derek Wallbank — Senior Editor, Bloomberg

Summary

Asian markets focused on TSMC's strong earnings, higher capex outlook and the U.S.-Taiwan trade deal, which revived AI enthusiasm and benefited semiconductor-linked equities. RBC Wealth Management's Jasmine Duan remained constructive on AI, U.S. and China equities, Chinese internet names and power-grid companies tied to the AI energy buildout. Wall Street bank earnings showed strong capital-markets momentum, while China's PBOC signaled targeted easing and Bloomberg Intelligence favored the Chinese yuan. Japan's politics and the yen/JGB trade remained in focus ahead of a snap election.

  • TSMC results and capex outlook lifted AI sentiment and semiconductor shares.
  • U.S.-Taiwan trade pact cut tariffs and outlined chip investment incentives.
  • Goldman Sachs and Morgan Stanley beat expectations on strong capital-markets activity.
  • RBC's Jasmine Duan stayed overweight U.S. and China equities and liked AI and energy-infrastructure exposure.
  • China's PBOC signaled targeted easing; Bloomberg Intelligence named the yuan a top FX pick.
  • Japan's snap-election politics kept focus on yen weakness and higher JGB yields.
  • China-Canada energy talks advanced but remained a policy framework.
  • U.S. markets rebounded while oil softened as Middle East tensions eased.
Ideas
Paul Dobson Executive Editor, Bloomberg 9:52
AI supply chain confidence is rising.
TSMC's strong profits, margins and massive capex plans increase confidence in the AI value chain, because TSMC will need to buy from many companies to build out capacity and roll out its plans.
SMH MED
Paul Dobson Executive Editor, Bloomberg 10:13
Buy Taiwan, Korea, Japan tech.
TSMC's results and capex outlook should keep benefiting tech-heavy equity gauges in Taiwan, South Korea and Japan as AI demand confidence returns.
Taiwan technology equities South Korea technology equities Japan technology equities MED
Paul Dobson Executive Editor, Bloomberg 15:01
Takaichi trade means weaker yen, higher yields.
If Prime Minister Takaichi's popularity holds and the opposition cannot erode it, the Takaichi trade should persist, meaning higher Japanese government bond yields and a weaker yen.
Japanese government bonds FXY MED
Neil Financials Analyst, Bloomberg Intelligence 18:29
Capital markets momentum favors Goldman, Morgan.
Capital markets momentum is continuing, M&A pipelines are full, IPO activity should pick up and the Fed/easing backdrop is conducive, which should favor leading capital-markets banks like Goldman Sachs and Morgan Stanley into 2026.
GS MS MED
Wendell Huang Vice President and CFO, TSMC 25:23
TSMC has strong AI capex conviction.
TSMC expects total capex over the next three years to be significantly higher than the past three years, evidence of its strong conviction in the AI megatrend, while leading-edge production stays in Taiwan and U.S. expansion follows customer demand.
TSM HIGH
Jasmine Duan Senior Investment Strategist, RBC Wealth Management Asia 50:34
AI remains key multi-year theme.
The AI story remains a key multi-year theme: AI is lifting productivity, big tech capex is still rising, and although some AI valuations are high, she does not think the sector is in a bubble.
AI equities MED
Jasmine Duan Senior Investment Strategist, RBC Wealth Management Asia 52:45
Overweight U.S. and China equities.
RBC is overweight U.S. and China equities, with more confidence in China and emerging markets into 2026 because valuations are attractive, Chinese internet names have pulled back versus U.S. peers, and U.S. markets are supported by AI-driven productivity and capex.
SPY FXI HIGH
Jasmine Duan Senior Investment Strategist, RBC Wealth Management Asia 53:06
China internet valuations attractive versus U.S.
Chinese internet names look attractive after their fourth-quarter pullback, with valuations reasonable compared with U.S. peers, supporting a more constructive view on China equities.
KWEB MED
Jasmine Duan Senior Investment Strategist, RBC Wealth Management Asia 55:08
AI energy bottleneck favors power grids.
AI competition between the U.S. and China is shifting to energy, so both countries will invest more in power grids; she is overweight U.S. power grid companies and sees China's electricity grid buildout accelerating as energy security becomes a priority.
GRID China power grid companies HIGH
Steven Chu FX Strategist 86:33
Chinese yuan is top FX pick.
The Chinese yuan is his top FX pick because China's policy is focused on a strong currency, cyclical factors and the U.S.-China trade surplus support it, and FDI is returning, even if the dollar rebalances.
CNY HIGH
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This Bloomberg Markets video, published January 16, 2026, features Paul Dobson, Neil, Wendell Huang, Jasmine Duan, Steven Chu discussing SMH, Taiwan technology equities, South Korea technology equities, Japan technology equities, Japanese government bonds, FXY, GS, MS, TSM, AI equities, SPY, FXI, KWEB, GRID, China power grid companies, CNY. 10 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Paul Dobson, Neil, Wendell Huang, Jasmine Duan, Steven Chu  · Tickers: SMH, Taiwan technology equities, South Korea technology equities, Japan technology equities, Japanese government bonds, FXY, GS, MS, TSM, AI equities, SPY, FXI, KWEB, GRID, China power grid companies, CNY