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2026-05-26 18:28:09
[AI Boom Drives Emerging Markets to Four-Day Rally, South Korean Stocks Hit Record High, Market Attention Shifts to Spending Opportunities] ⑴ Driven by the artificial intelligence boom, the MSCI Emerging Markets benchmark index rose 0.5% on Tuesday, marking its fourth consecutive day of gains, with the cumulative increase over the past four trading days expanding to 5%. The index was mainly led by Seoul-listed electronics manufacturers. ⑵ South Korean stocks hit a record high, becoming the leader in this round of emerging market gains. Meanwhile, the corresponding index measuring emerging market currency returns rose less than 0.1%, showing a divergence between stock and currency market performance. ⑶ Despite the uncertainty surrounding the next phase of US-Iran negotiations, Asian stocks continued their upward trend after many markets had a long weekend holiday. Strategists at JPMorgan Asset Management analyzed that global investors have shifted their focus beyond current geopolitical concerns. ⑷ Investors are turning their attention to potential investment opportunities arising from increased spending by the public sector, military, and businesses globally. From a trading psychology perspective, the AI-driven structural growth narrative is surpassing short-term geopolitical risks and becoming the main logic behind capital inflows into emerging markets. (5) South Korea, with its global leadership in semiconductor and electronics manufacturing, has become one of the biggest beneficiaries of this AI boom. Going forward, attention should be paid to whether developments in the US-Iran situation will cause temporary disruptions to risk appetite, but long-term capital expenditure trends related to AI are expected to continue supporting the valuations of emerging market technology sectors.
