“Despite the numerous risks lurking on the horizon, the AI boom powers on,” Moody’s Analytics economists led by Denise Cheok wrote in a note. The tailwind from the sector has boosted growth in parts of Southeast Asia involved in the tech ecosystem but the concentration in a single segment poses risks from a sudden drop in AI demand, they wrote.
(June 1): Emerging Asian equities rose to a record, propelled by continuing enthusiasm for the artificial intelligence trade that’s bolstered global stocks despite the Iran war.
MSCI’s emerging markets index climbed as much as 2% to an all-time high on Monday, driven by AI leaders in South Korea and Taiwan. A similar gauge for emerging-market currencies edged lower as oil prices rose and the dollar gained amid lack of clarity on a ceasefire deal between the US and Iran.
