Asian Stocks Rebound as MSCI Asia-Pacific Gains 0.3% on AI Optimism

3 articles · Updated · Reuters · May 13

MSCI's Asia-Pacific index outside Japan rose 0.3% after erasing an early 1% drop, as renewed AI enthusiasm helped regional markets shake off worries over U.S.-Iran tensions and hotter U.S. inflation.
South Korea led the turnaround: the Kospi rebounded from a 3.2% slide to close 2.6% higher at a record, while Samsung swung from a 6.1% drop to a 1.8% gain after Seoul moved to head off a strike by more than 50,000 workers.
Nomura said strong AI-led exports from South Korea, and to a lesser extent Japan, Singapore and Malaysia, are cushioning the hit from elevated energy prices.
Oil fell 1.4% to $106.32 as U.S.-Iran talks made no progress, while investors also watched Donald Trump's upcoming meeting with Xi Jinping for signs the U.S.-China trade truce could hold.
The rebound came despite Wall Street losses after April U.S. inflation posted its biggest rise in three years, pushing market odds of a 25-basis-point Fed hike in December above 35%.

As AI fuels an Asian stock rally, is Wall Street's inflation fear the real story for the global economy?

Can AI's productivity boom coexist with rising interest rates, or will one inevitably derail the other?

With AI chips now a key geopolitical issue, how will the tech race redefine global economic alliances and conflicts?