Asian stocks climbed for a fifth straight session, pushing the MSCI Asia Pacific Index to a record and up 13 per cent this year as investors rotate toward cheaper valuations and Asia’s dominant role in the AI supply chain
Asian equities climbed for a fifth straight session, sending the region’s benchmark index to a fresh record and extending a remarkable run of outperformance against Wall Street this year.
The MSCI Asia Pacific Index rose about 0.4 per cent to an all-time high, taking its gains to roughly 13 per cent so far in 2026. That marks its strongest start relative to the S&P 500 this century. US equities, by contrast, have advanced just about 1.4 per cent over the same period.
The rally comes against a shifting global backdrop—firmer-than-expected US jobs data, rising Treasury yields and lingering questions over the sustainability of the artificial intelligence (AI) trade that powered markets last year.
US data lifts yields, tests rate-cut bets
Overnight, US Treasuries fell after data showed American employers added 130,000 jobs in January—roughly double market expectations. The unemployment rate edged lower, reinforcing the view that the world’s largest economy remains resilient despite high borrowing costs.
The benchmark 10-year Treasury yield climbed to around 4.18 per cent as traders dialled back expectations of imminent Federal Reserve rate cuts. Money markets shifted bets on the next cut to July from June previously, reflecting a reassessment of how quickly policymakers may ease.
Asia’s valuation appeal and AI positioning
Despite higher global yields, investors have continued rotating into Asian equities, attracted by relatively cheaper valuations and improving earnings visibility in parts of the region.
Strategists say the AI theme—though clouded by volatility and questions about stretched US tech valuations—is evolving rather than fading. The next leg of investment is expected to centre on hardware, semiconductors, advanced packaging and industrial applications, areas where Asian companies play a dominant role in the global supply chain.
Technology-heavy markets such as Taiwan, South Korea and Japan have benefited from renewed inflows. Japanese shares advanced as trading resumed after a holiday, contributing to the regional momentum.
End of Article
Leave a Reply