Risk Rally Powers Past Iran Stalemate | The Asia Trade 6/1/2026

Summary

The episode covers the ongoing US-Iran stalemate, oil price impact, and the resilient AI-driven equity rally. The Computex conference highlights AI supply chain bottlenecks and the rise of challengers to Nvidia. Defense spending increases across Asia-Pacific are discussed. Market participants remain relaxed about geopolitical risks, focusing on AI themes and picks-and-shovels plays.

• US-Iran negotiations remain stalled with little progress on reopening the Strait of Hormuz.
• Oil prices are elevated but equity markets, especially AI-related, continue to rally.
• Computex in Taipei is a major focus, with Nvidia's Jensen Huang keynote expected.
• AI supply chain bottlenecks including memory chips and high-bandwidth memory are key themes.
• Defense spending is rising across Asia-Pacific, with Hanwha Aerospace highlighting demand outstripping supply.
• Australia's defense minister commits to significant budget increases.
• Jun Bei Liu favors picks-and-shovels in AI supply chain over AI leaders.
• Consumer spending is seen as a weak spot globally, including China.