AI slump revives Asia's forgotten stock bets, from China to India
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Investors are rethinking their Asia playbook as the AI trade unravels after the US midterm elections.
- ✓Many are now looking at Chinese and Indian stocks for better growth.
- ✓"I expect investors to diversify more broadly and reduce their concentration in the AI trade," said Rajeev De Mello of Gama Asset.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Standard
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
By Abhishek Vishnoi and Winnie Hsu
The unraveling of the AI trade after the US midterm elections is forcing investors to rethink their Asia playbook, reviving demand for out-of-favor Chinese and Indian stocks as well as companies poised to benefit from easing inflation and trade tensions.
Aberdeen Investments favors markets powered by stronger domestic growth, including India and Vietnam, and sees upside in Chinese technology firms. Hedge fund Lotus Asset Management is long Hong Kong equity futures, while Allianz Global Investors is looking at healthcare and consumer companies.
Asia has been among the hardest hit by the market fallout from the Democrats' sweep of Congress. Many of the region's biggest stocks -- from Samsung Electronics Co. and SK Hynix Inc. to Taiwan Semiconductor Manufacturing Co. -- are critical suppliers to the global AI build-out, leaving local markets especially exposed as investors brace for greater scrutiny of the industry and question whether massive spending on computing infrastructure will generate sufficient returns.
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