AI BOOM SPLITS ASIA'S MARKETS DESPITE WAR RISKS

Asia's equity markets are displaying contradictory signals. While some nations face escalating security concerns, investor capital continues flowing into AI-related sectors and tech stocks across the region. Markets in countries heavily invested in semiconductor and AI infrastructure are reaching new highs, driven by expectations of sustained demand for computing power and chip manufacturing. Meanwhile, markets in regions with heightened geopolitical risks are underperforming, suggesting investors are pricing in potential conflict costs. The divergence highlights a fundamental market split: tech-focused economies benefiting from the AI boom are outpacing those burdened by security uncertainties. This creates a two-speed Asia where growth trajectories depend increasingly on proximity to AI supply chains rather than traditional risk factors. Analysts note the AI narrative currently dominates trading decisions, but sustainability of this premium depends on geopolitical stability holding and continued AI investment momentum.