Asian stock markets edged higher Tuesday, offering a contrast to recent U.S. Declines triggered by anxieties surrounding the potential impact of artificial intelligence on corporate valuations. Futures contracts for the S&P 500 rose 0.2% as of 3:02 p.m. Tokyo time, signaling a potential rebound after Monday’s sell-off.
The shift in sentiment was particularly evident in the semiconductor sector, with SK Hynix Inc., Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. All reaching record highs. Investors are increasingly viewing these companies as key beneficiaries of the ongoing AI buildout, positioning them as the essential “picks and shovels” providers for the technology’s expansion.
The gains in Asia—where markets have outperformed the U.S. This year—come after a Citrini Research report outlining potential risks associated with AI across various industries contributed to a downturn in U.S. Tech, delivery, and payment shares. The report’s findings compounded existing uncertainty surrounding potential tariffs proposed by President Donald Trump.
“The AI scare trade cutting through US markets is a displacement story, with generative AI repricing the revenue models of enterprise software, professional services, and wealth management platforms,” said Christopher Forbes, head of Asia at CMC Markets. “Asia’s equity indices carry almost none of that exposure. The decoupling has already begun.”
The “AI scare trade” has broadened beyond software, impacting U.S. Insurance brokers, private credit firms, cybersecurity companies, and even real estate services stocks. In contrast, MSCI’s Asia Pacific Index has risen 12% in 2026, while the S&P 500 has remained largely unchanged, marking the strongest start to a year relative to the U.S. Benchmark on record.
Shares in South Korea increased by 2%, and Taiwan saw a jump of 2.7%. China also experienced gains following the Lunar New Year holidays, contributing to the broader MSCI Asia Pacific Index’s advance of 0.2%.
Mohit Mirpuri, a senior partner at SGMC Capital Pte, noted a “more deliberate allocation toward Asia and emerging markets” in the first two months of the year. “This doesn’t necessarily signal a structural decoupling, but it does suggest that global portfolios are broadening exposure beyond the narrow US tech concentration trade,” he said.
Trump’s new 10% global tariffs took effect Tuesday, initiating a White House effort to uphold the president’s trade agenda after the Supreme Court invalidated his original sweeping duties.
Alap Shah, co-author of the Citrini report, stated in a Bloomberg TV interview that chipmakers, data centers, and foundation-model labs are poised to benefit from the AI trade, while businesses involved in intermediation, such as insurers and banks, face potential risks. Shah also disclosed that his firm held short positions in some of the companies mentioned in the report and “a lot” of semiconductor stocks.
JPMorgan Chase & Co. Anticipates net interest income of approximately $104.5 billion this year, exceeding previous expectations. PayPal Holdings Inc. Is reportedly attracting takeover interest following a stock decline that has erased nearly half of its value. Merck & Co. Is restructuring its pharmaceutical unit to highlight growth areas as it prepares for patent expirations on its top-selling cancer drug, Keytruda. Paramount Skydance Corp. Has increased its offer to acquire Warner Bros. Discovery Inc., continuing the competition for the iconic Hollywood studio. FedEx has filed a lawsuit seeking a full refund for duties paid due to President Trump’s emergency tariffs.
Spot gold fell 0.9% to $5,178.98 an ounce, while West Texas Intermediate crude rose 0.8% to $66.81 a barrel.
