Gotrade News - Asian equities climbed Monday as artificial intelligence demand offset weaker China factory data and lingering Gulf supply risks. The Nikkei rose 0.5% after gaining roughly 5% last week to fresh all-time highs.
South Korea's Kospi advanced 1.3% on resilient tech exports, while MSCI Asia-Pacific ex-Japan added 0.2%. The rally reflects investor confidence that AI-linked capital spending can absorb softer macro signals across the region.
Key Takeaways
- Nikkei rose 0.5% and South Korea gained 1.3% as AI-linked sentiment lifted regional benchmarks.
- China's private factory gauge slowed, signaling broader economic softness even as Korean exports held firm.
- The AI-linked Big 10 now account for 40% of S&P 500 value, leaving breadth narrow heading into June.
According to Investing.com, Taiwan equities surged about 6% last week on chip demand. South Korea added roughly 8% over the same stretch, led by semiconductor exporters.
S&P 500 futures rose 0.2% and Nasdaq futures gained 0.4% in early Asian trade. The moves followed Jensen Huang's COMPUTEX keynote, which reinforced bullish sentiment around AI hardware demand.
Tech stocks climbed 16% in May while consumer staples fell 3%, highlighting concentrated leadership. Only 21 of 500 S&P constituents reached record highs last month despite the index's gains.
China Softens While Korea Holds Firm
As reported by Bloomberg, China's private factory activity gauge slowed in May. The reading points to softer domestic demand and continued pressure on the manufacturing recovery.
The data complicates Beijing's stimulus calculus heading into the second half of 2026. Investors will watch whether policymakers respond with additional easing or rely on external tech demand to cushion growth.
Per Bloomberg, South Korea's export momentum continued in May, backing the Bank of Korea's hawkish stance. Chip and AI hardware shipments led the strength across export categories.
The export resilience supports suppliers tied to global AI infrastructure spending. Korean memory makers and foundry partners benefit directly from sustained orders flowing through US hyperscaler capex.
Oil and Rates Add Cross-Currents
Brent crude rose 1.9% to $92.89 a barrel as Gulf supply concerns kept a risk premium intact. US crude added 2.4% to $89.46, tightening conditions for energy-importing Asian economies.
Gold held flat near $4,535 an ounce while 10-year Treasury yields rose 3 basis points to 4.470%. The mixed signals suggest investors are balancing inflation risk against AI-driven equity strength.
JPMorgan's Michael Feroli said the acute risk phase for the global economy should be over if tanker traffic resumes normally. The framing supports a base case where AI demand carries equities through transitory supply shocks.
Chip leaders Taiwan Semiconductor (TSM) and Nvidia (NVDA) remain central to the Asia-AI trade. Broadcom (AVGO) also benefits from custom silicon demand tied to hyperscaler buildouts.
Narrow market breadth remains the key risk for investors chasing the AI rally into June. Any disappointment from the Big 10 cohort could pressure benchmarks despite supportive macro signals from Korea.
