Aug 18, 2026 · 7 min
Asian markets weigh commodities, rates and the AI trade
BHP Rises, Tokyo Electron Down, Alibaba Up
The episode connects BHP’s commodity gains, Japanese yield pressure and Alibaba’s AI ambitions across three distinct market forces.
- 1BHP benefits as stronger copper and iron ore prices improve its profit outlook.
- 2Rising Japanese short- and long-term yields pressure technology stocks amid rate-hike expectations and yen weakness.
- 3Alibaba gains momentum from AI tokens and cloud computing while Baidu faces longer-term search challenges.
Don't miss
The clearest market tension emerges as Alibaba’s AI and cloud momentum contrasts with technology-stock pressure from rising Japanese yields.
The brief
BHP leads the Asian market roundup after stronger profit, with improved copper and iron ore prices supporting the mining giant and other Australian winners such as CSL.
The focus shifts to Japan, where pressure on short- and long-term bond yields, expected Bank of Japan rate increases and yen weakness weigh on technology stocks.
Alibaba gains ahead of earnings as AI tokens and cloud computing strengthen its momentum, while Baidu confronts longer-term challenges in search.
The episode closes by previewing a smart-cities discussion with Jacob Greaves, Rohit Krishnan and Estefanía Tapias on AI, urban innovation and Dubai’s long-term planning.
What was said on this episode
16 statements · 10 positive · 5 negative · 1 mixed
BHP benefits as copper becomes more important than iron ore in its business.
“BHP is a bit of a change here. They are benefiting from the copper rally as copper overtakes INO within its business.”
Listen at 0:47
BHP has a more sustainable footing because of its copper exposure.
“So a bit more sustainable footing.”
Listen at 1:05
CSL shares rose 18% amid touted new drug developments.
“CSL is up 18% as they tout some new drug developments.”
Listen at 1:10
Cochlear appears to be improving through greater operational efficiency.
“this long-suffering maker of hearing aids finally seems to be turning the corner just by getting more operational efficiency out of the company”
Listen at 1:19
The Bank of Japan should raise interest rates soon to support the yen.
“The Bank of Japan needs to increase interest rates. fairly soonish to stem the slide in the yen.”
Listen at 1:57
Higher Japanese short-term yields make Japanese technology stocks harder to trade.
“We're pricing in higher short-term yields in Japan. That makes tech in Japan harder to trade versus tech elsewhere in the region and in the US, for example.”
Listen at 2:12
Japanese yield pressure is hurting Advantest, Tokyo Electron, Murata, and Kioxia shares.
“And that's hurting the shares of the likes of Advantes, Tokyo Electron, Murata, and some of these higher beta. names like Kyokshia”
Listen at 2:22
Alibaba is outperforming other AI-related stocks.
“Alibaba is off to the races here. It's pulling away from the other AI plays”
Listen at 2:43
Investors are more optimistic about Alibaba earnings than Tencent or Baidu earnings.
“there's a lot more optimism on the Alibaba earnings than there was on Tencent and definitely a lot more optimism than ahead of Baidu earnings.”
Listen at 2:58
Baidu has lost search market share over the past decade.
“Baidu has basically gone through a decade-long slide in losing search market share.”
Listen at 3:06
Baidu may lose additional search market share to AI.
“now it faces the prospect of losing search market share to AI.”
Listen at 3:13
Baidu's AI initiatives are currently underperforming.
“Baidu's AI initiatives have been kind of sputtering”
Listen at 3:17
Baidu has a strong closed-model ecosystem misaligned with China's broader AI direction.
“It's one of China's few closed model ecosystems. That's really quite good, but it's against the grain of how China is going in that space.”
Listen at 3:28
AI will accelerate processes in smart-city systems.
“AI will allow in the smart city space to compress a lot of things. The speed will change.”
Listen at 4:39
Dubai responded effectively to its sudden population increase.
“I think they reacted very well to it.”
Listen at 5:05
Dubai has a long-term urban planning vision.
“They have a long-term urban planning vision”
Listen at 5:07
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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