Asian Equities Climb as AI Demand Lifts Nikkei 0.5% Despite Weak China Factory Data
Updated
Updated · heygotrade.com · Jun 1
Asian Equities Climb as AI Demand Lifts Nikkei 0.5% Despite Weak China Factory Data
11 articles · Updated · heygotrade.com · Jun 1
Nikkei rose 0.5%, Kospi gained 1.3% and MSCI Asia-Pacific ex-Japan added 0.2% on Monday as investors kept buying AI-linked stocks.
Jensen Huang's COMPUTEX keynote and continued chip demand reinforced bets that AI capital spending can offset softer regional macro signals, even after China's private factory gauge slowed in May.
South Korea's resilient tech exports underpinned the rally and supported the Bank of Korea's hawkish stance, with chip and AI hardware shipments leading May export strength.
Brent crude at $92.89 and U.S. crude at $89.46 kept pressure on energy-importing Asian economies, but S&P 500 and Nasdaq futures still rose as the AI trade stayed dominant.
That leadership remains narrow: the AI-linked Big 10 make up 40% of S&P 500 value, and only 21 constituents hit record highs last month.
Global oil supply is down 11 million barrels daily. Can the world economy now avoid a recession, deal or no deal?
If U.S. intelligence says Iran isn't building a nuclear weapon, what is the conflict's real objective?
What deal could verifiably prevent Iran from building a bomb without triggering an even wider regional war?
Strategic Stalemate: U.S.-Iran Conflict, Strait of Hormuz Risks, and Asia-Pacific Market Responses as of May 2026
Overview
As of late May 2026, global equities have shown resilience, with investors largely ignoring risks unless they directly impact economic fundamentals. Earlier in March, Asia Pacific markets saw a sell-off and airline stocks dropped sharply, reflecting market apprehension tied to ongoing geopolitical tensions around the Strait of Hormuz. Despite a fragile ceasefire between the U.S. and Iran, significant differences remain in their negotiation proposals, especially regarding control over the Strait and nuclear activities. This unresolved conflict continues to influence market sentiment and shapes investor strategies, particularly in energy and basic industry sectors.