Winnie Hsu

Optimism around SpaceX IPO and the lifting of pre-IPO liquidity overhang will boost sentiment for South Korean tech stocks like SK hynix, which also benefit from leveraged ETF flows amplifying moves.

Asian technology shares are rallying as Micron's $250 billion US capex plan renews optimism that AI-driven demand remains strong. Ahead of SK Hynix's massive US listing, South Korea's KOSPI is leading gains, indicating investor appetite for chip stocks.

Samsung Electronics both actually up double digits earlier today and lots of optimism still in the stocks after valuations dropped about 25% since the January height, while the overall outlook for demand and memories to looks quite intact. South Korea is highly dependent on Middle Eastern oil imports. The sudden drop in oil prices removes a massive macroeconomic overhang and input cost pressure for the country. With the macro pressure relieved, the underlying fundamental strength of memory chip demand can drive a sustained recovery in Samsung's heavily discounted shares. LONG because the fundamental demand for memory chips remains strong while the primary macroeconomic headwind (energy costs) is subsiding. If the Middle East conflict re-escalates and oil spikes back above $120, South Korean equities will face renewed macro pressure regardless of chip demand.

TSMC sales for the first two months of the year coming at about 30% year-over-year so that shows how the demand remains strong on that front... along with Oracle's better-than-expected earnings. Both pointed to a very solid AI outlook. Global AI infrastructure spending is completely insulated from Middle East geopolitical shocks and energy supply chain disruptions. As capital flees volatile commodity-linked assets, it will rotate into high-growth, cash-rich semiconductor and cloud infrastructure leaders that are demonstrating tangible revenue acceleration. LONG. AI hardware and infrastructure demand is overriding macroeconomic and geopolitical fears, making these names safe-haven growth assets. A broader macroeconomic recession triggered by sustained high energy prices could eventually force enterprise customers to cut IT and cloud capex budgets.

Taiwanese stocks are outperforming and have overtaken Korean stocks as the top global gauge this year, supported by ongoing AI optimism from Nvidia's investment and Dell's forecast, while Korea leads Asian losses.

Japanese banks, particularly MUFG, are clear beneficiaries of the Bank of Japan raising interest rates, leading to significant outperformance and dominance in the TOPIX index.

Alphabet's increased AI spending will trickle down to benefit the Asian AI supply chain, with SK Hynix gaining because over 7% of its revenue comes from Alphabet, and Japanese semiconductor equipment makers also benefiting from higher capex.

Fund managers are rotating out of expensive Korean tech into underperforming but cheap Chinese internet names. Valuations are very low, there is positive earnings momentum from stocks like Alibaba, and Chinese internet offers catch-up potential relative to the rally in AI-related hardware.

Japanese assets are experiencing a triple rally after Finance Minister Katayama urged pension funds to invest more domestically. This signals a shift in capital flows, with the GPIF reducing its large overseas allocation, boosting optimism that money will rotate back into Japanese equities, yen, and government bonds.

Japanese stocks are seeing net inflows of $74 billion year-to-date, on track for the largest annual inflow since 2013. Japan is less concentrated and volatile, and offers good exposure to the AI supply chain as the AI trade broadens out.

DeepSeek's cheaper and more efficient Ultra model requires less high-bandwidth memory, which is driving memory chip stocks lower. SK Hynix and Samsung Electronics are leading Asian losses as investors worry about lower HBM demand.

DeepSeek's cheaper and more efficient Ultra model requires less high-bandwidth memory, which is driving memory chip stocks lower. SK Hynix and Samsung Electronics are leading Asian losses as investors worry about lower HBM demand.

Asian financials are rallying with Korean banks and Japanese banks gaining because both central banks are expected to continue raising rates, which would likely benefit banks and fixed income investments.

Taiwanese stocks are outperforming and have overtaken Korean stocks as the top global gauge this year, supported by ongoing AI optimism from Nvidia's investment and Dell's forecast, while Korea leads Asian losses.

The current memory chip shortage is prompting companies to ramp up capacity, which will eventually ease the shortage and create downside risk for memory makers like SK Hynix, while benefiting downstream users like Nintendo and Sony.