Market Optimism Builds on US-Iran Plan | The Asia Trade 4/16/2026

Watch on YouTube ↗  |  April 16, 2026 at 04:06  |  1:34:52  |  Bloomberg Markets
Speakers
Wei Li — Global Chief Investment Strategist, BlackRock
Shery Ahn — Anchor, Bloomberg Television
Herman Chan — Head of Asia, CoinDesk
Ted Pick — Head of Financial Products, Apollo

Summary

The video discusses market optimism fueled by hopes of a U.S.-Iran cease-fire extension, strong bank earnings from Morgan Stanley and Bank of America, and the ongoing AI trade. Guests analyze the economic impact of the Iran war, China's relative resilience, and investment strategies favoring U.S. and emerging market equities, particularly in tech and AI sectors.

  • Asian stocks set to open higher following Wall Street gains.
  • U.S. and Iran consider a two-week cease-fire extension to negotiate a peace deal.
  • Morgan Stanley and Bank of America report strong first-quarter results, driven by trading and net interest income.
  • TSMC earnings preview indicates strong AI demand and record profitability.
  • BlackRock's Wei Li upgrades U.S. and emerging market equities, highlighting AI and selective Chinese sectors.
  • IMF's Kristalina Georgieva warns of global economic risks if the Iran war persists.
  • Japan appears calm despite energy dependence due to strategic stockpiles and subsidies.
  • China's GDP expected to show resilience to energy shock, with tourism sector growing strongly.
Trade Ideas
Min Min Low China Correspondent, Bloomberg 19:22
TSMC earnings expected strong on AI demand.
TSMC is expected to report record first-quarter results with net income growing 50%, driven by strong AI demand and pricing power for advanced nodes. Earnings beat could provide fresh catalyst for the stock.
TSM HIGH
Wei Li Global Chief Investment Strategist, BlackRock 50:37
Upgraded EM to overweight.
Upgraded emerging markets to overweight, driven by countries like South Korea and Taiwan, due to earnings upgrades and AI demand.
EWT EEM EWY HIGH
Wei Li Global Chief Investment Strategist, BlackRock 50:37
Upgraded U.S. equities to overweight.
Upgraded U.S. equities from neutral to overweight due to economic incentives for a cease-fire in Iran and strong earnings upgrades with positive revision momentum, making valuations attractive.
SPY HIGH
Wei Li Global Chief Investment Strategist, BlackRock 52:01
U.S. tech/AI favored due to capex growth.
Hyperscaler capex is forecast to grow 60% year-over-year, and monetization of AI is showing positive signs with annual revenue run rate increasing to $30 billion. The U.S. has an edge in AI due to relative insulation from energy disruptions.
XLK AIQ HIGH
Wei Li Global Chief Investment Strategist, BlackRock 56:54
Downgraded Japanese equities due to energy dependence.
Downgraded Japanese equities from overweight to neutral due to greater energy dependence, making them less attractive for re-risking compared to U.S. and EM equities.
EWJ MED
Wei Li Global Chief Investment Strategist, BlackRock 57:57
Selective in Chinese equities, favor certain sectors.
While broadly neutral on Chinese equities, they favor specific sectors including AI, tech, automation, green energy, and digital trade due to selective opportunities.
KWEB ROBO ICLN DIGITAL TRADE THEME MED
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This Bloomberg Markets video, published April 16, 2026, features Min Min Low, Wei Li discussing TSM, EWT, EEM, EWY, SPY, XLK, AIQ, EWJ, KWEB, ROBO, ICLN, DIGITAL TRADE THEME. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Min Min Low, Wei Li  · Tickers: TSM, EWT, EEM, EWY, SPY, XLK, AIQ, EWJ, KWEB, ROBO, ICLN, DIGITAL TRADE THEME