Yen Falls To 40-Year Low, Trump Imposes Pharma Tariffs | The Asia Trade 7/22/2026

Watch on YouTube ↗  |  July 22, 2026 at 06:04  |  1:35:18  |  Bloomberg Markets
Speakers
Mark Cranfield — Cross Asset Strategist, Bloomberg
Anthony Stevens — Bloomberg Market Producer
Kyle Rodda — Senior Market Analyst, Capital.com
Chen Haofei — Chief Strategist, BOC International
Garfield Reynolds — Markets Reporter/Editor, Bloomberg
Patrick Wong — Head of Bloomberg Intelligence Hong Kong
Stephen Engle — Chief North Asian Correspondent, Bloomberg
Scott Kessler — Global Sector Lead, TMT, Third Bridge
Winnie Souza — Asia Equities Reporter, Bloomberg
Marie-Christine Yokohama — Associate Analyst, Bloomberg Intelligence

Summary

The Asia Trade covers a risk-on session driven by a chipmaker rally and AI optimism, even as the yen hits a 40-year low and US-Iran tensions persist. Guests detail themes from yen structural weakness and Korean won strength to China's state stock rescue, solid US tech earnings expectations, and a 19% Hong Kong property price forecast.

  • Yen slides past 163 to a fresh four-decade low as carry trade, BOJ inaction, and dollar strength dominate
  • US tech earnings season eyed for AI monetization; chipmakers rally with Philadelphia Semiconductor Index up over 5%
  • China deploys state funds and coordinated buybacks to support battered AI and chip stocks after sharp selloff
  • Oil edges higher as US-Iran strikes intensify and Red Sea shipping risks expand, but no disorderly spike
  • Trump announces 100% tariff on generic drugs effective 2028, viewed as an opening for negotiations rather than immediate risk
  • Korean won seen strengthening versus yen on chip export boom, BOK rate hike cycle, and official guidance
  • Hong Kong home prices forecast to rise 19% by 2027, driven by population inflows and sustained rental growth
Ideas
Mark Cranfield Cross Asset Strategist, Bloomberg 3:25
AI demand drives semiconductor upside.
Upcoming U.S. tech earnings season is expected to be solid, with strong AI product demand and record spending on chips; positioning has been cleaned out after recent volatility, setting up chipmakers for a rally.
SOX MED
Mark Cranfield Cross Asset Strategist, Bloomberg 6:39
Yen weakness to persist indefinitely.
The yen is structurally weak due to persistent carry trade advantage for USD, Bank of Japan being well behind the curve, and markets no longer fearing intervention; dollar-yen could march higher toward 200 like the 1980s.
FXY HIGH
Anthony Stevens Bloomberg Market Producer 29:33
Korean won strengthens versus yen.
Korean won is set to strengthen against the yen, driven by the chip export boom, BOK rate hike expectations, authorities encouraging repatriation, and the yen remaining weak; the KRW/JPY cross looks ready to break higher.
KRW MED
Kyle Rodda Senior Market Analyst, Capital.com 54:26
Solid tech earnings to boost Nasdaq.
Expectations are high for solid tech earnings from hyperscalers, proving AI monetization; results should reignite the AI investment narrative and push Nasdaq and semiconductor stocks higher after recent consolidation.
QQQ MED
Kyle Rodda Senior Market Analyst, Capital.com 59:52
China stocks rally on valuation gap.
Chinese state support for stocks, combined with AI breakthroughs and deeply depressed valuations relative to US peers, creates a positive setup for a valuation gap closure in Chinese equities.
FXI MED
Chen Haofei Chief Strategist, BOC International 75:17
Invest in second-tier Chinese AI stocks.
Chinese AI development is not a zero-sum game; the best opportunities lie in second-tier AI and semiconductor stocks trading at 20-30x P/E with visible 20-30% earnings growth, as opposed to expensive superstar names at 100x P/E.
KWEB HIGH
Patrick Wong Head of Bloomberg Intelligence Hong Kong 91:25
Hong Kong property prices to surge.
Hong Kong residential property prices are poised for 19% growth this year and next, supported by 5% annual rental growth, population inflows from students and working visas, and strong investment demand.
EWH HIGH
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This Bloomberg Markets video, published July 22, 2026, features Mark Cranfield, Anthony Stevens, Kyle Rodda, Chen Haofei, Patrick Wong discussing SOX, FXY, KRW, QQQ, FXI, KWEB, EWH. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Cranfield, Anthony Stevens, Kyle Rodda, Chen Haofei, Patrick Wong  · Tickers: SOX, FXY, KRW, QQQ, FXI, KWEB, EWH