AI Trade Lifts Asian Stocks | The China Show 5/11/2026
Speakers
Lorraine Tan
— Morningstar Director of Asia Equity Research
Summary
Asian stocks rally on AI trade, with Korea and Taiwan leading. China's April inflation data beat expectations, signaling reflation. The upcoming Trump-Xi summit and ongoing Iran conflict are key risks. Alibaba integrates AI into Taobao, and DeepSeek seeks funding.
- AI-driven semiconductor rally lifts Korean and Taiwan stocks, especially Samsung and SK hynix.
- China's April CPI (1.2%) and PPI (2.8%) both exceed forecasts, indicating reflation.
- President Trump's visit to Beijing for summit with Xi Jinping is confirmed for May 13-15.
- Iran conflict continues; oil prices rise after Trump rejects peace proposal.
- Alibaba plans to integrate its Qwen AI model into Taobao for AI-powered shopping.
- DeepSeek reportedly seeking ¥50 billion in first external funding round.
- Australian treasurer unveils budget focusing on housing, fuel security, and productivity.
- Hantavirus outbreak on cruise ship leads to repatriation flights and monitoring.
Trade Ideas
TSMC is a core AI trade.
TSMC is a core holding in the AI trade with strong earnings and positive outlook, offering long-term growth despite stretched valuations in memory stocks. The company benefits from being a key foundry for AI chips and has strong fundamentals.
Advantest has long-term visibility.
Advantest, as a semiconductor test equipment company, has long-term visibility from recent earnings outlooks and benefits from increased AI-related hardware demand. She recommends it as a selective pick in the tech hardware space.
Tencent is undervalued with AI potential.
Tencent is a preferred name because it has underperformed the broader AI-driven rally and offers long-term AI monetization potential through its ecosystem, making it attractive at current valuations.
Alibaba has AI monetization upside.
Alibaba is a preferred name because it has underperformed and has long-term AI monetization potential through integration of AI into its e-commerce platform, despite near-term headwinds in e-commerce and cloud.
Up Next
This Bloomberg Markets video, published May 11, 2026, features Lorraine Tan discussing TSM, Advantest, TCEHY, BABA. 4 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Lorraine Tan · Tickers: TSM, Advantest, TCEHY, BABA