An AI-driven boom has lifted the chip makers so high they have rewritten Asia’s order. Taiwan and Korea together now outweigh India and China.
India, with no large chip play, watches a record outflow of capital. The region’s pecking order is being redrawn by semiconductors.
Today’s Asia Intelligence Brief covers the region’s finance, markets, economy, and trade. We pulled it together from Japanese, Chinese, Korean, Hindi, Bahasa Indonesia, Vietnamese, and English sources.
The Region — A New Order
The Hubs Pull Away
An AI-driven earnings boom has transformed two of Asia’s economies. Taiwan and Korea, the region’s chip hubs, have surged this year.
Their combined stock markets now outweigh those of India and China together. A year ago, that ranking would have seemed unthinkable.
A Historic Shift
Taiwan has overtaken India to become the world’s fifth-largest market. Korea’s main index has rallied to repeated record highs.
The pecking order of Asia’s markets is being redrawn before our eyes. Semiconductors, not size or population, now set the pace.
Taiwan — At The Heart Of It
Orders Surge
Fresh figures this week are expected to show Taiwan’s export orders leaping. The rise is led by semiconductors and computer products.
The island sits at the very heart of the global build-out of AI. The world’s appetite for its advanced chips shows no sign of fading.
A Record Run
Taiwan’s exports recently topped fifty billion dollars in a single month. It was the first time the island had ever crossed that mark.
Chips and computing gear made up the lion’s share of that total. The numbers capture just how central Taiwan has become.
India — Watching From Outside
Capital Flows Out
India has no large-scale chip industry to ride the AI wave. Foreign investors have pulled a record sum from its market this year.
The outflow has run far higher than in the whole of last year. The money is chasing the chip boom playing out elsewhere.
The Consumption Story Cracks
India’s prized story has long been its vast and growing consumer base. But that theme is being outshone by the AI surge next door.
Its economy still grows quickly, among the fastest of the giants. Yet for now, global money is looking past it toward the chips.
South Korea — Riding High
Records Tumble
Soaring chip earnings have pushed Korean shares to fresh record highs. Its main index has been among the best performers anywhere.
Memory-chip makers are reporting their strongest profits in years. The AI demand for their products has been simply relentless.
A Brighter Mood
The boom has lifted the national mood toward all-time highs. Consumer confidence has climbed on the back of the rally.
A strong stock market makes households feel wealthier and bolder. The good cheer is spreading well beyond the chip factories.
China — The Engine Runs On
Exports Climb
China’s shipments to America jumped by a third in May from a year earlier. A push in technology goods drove much of the increase.
The rise came despite the trade tension between the two giants. China‘s vast export engine keeps running through the friction.
A Stubborn Strength
The export strength is a rare bright spot in a softer economy. Weak demand at home has left exports carrying the load.
Beijing leans on its factories to make up for cautious shoppers. For now, the world is still buying what China makes.
The Region — Trade Walls Rise
New Barriers
Even as chips flow freely, other goods face rising barriers. Vietnam and Korea have placed new duties on imported steel.
India has raised special taxes on a range of Chinese products. A web of fresh trade walls is going up across the region.
Two Speeds
So Asia trades ever more in chips while guarding much else. The openness of one sector sits beside the caution of others.
The frictions are a reminder that free trade is far from settled. Even a booming region keeps one hand on the drawbridge.
Japan — Strength And Strain
Near Its Record
Japan’s market continues to hold near its record high this week. Strong technology shares have kept it well supported.
Yet beneath the calm, government borrowing costs have climbed sharply. They have reached their highest levels in forty years.
A Delicate Balance
The strength of the market and the strain on the budget run together. A heavy debt load makes those higher costs a real worry.
Investors are watching the budget with a newly wary eye. Japan’s record sits atop a foundation that has begun to creak.
Southeast Asia — Riding The Slipstream
Quiet Winners
The smaller economies are quietly gaining from the great reshuffle. Vietnam’s exports keep hitting fresh records month after month.
Factories are relocating its way as supply chains shift around. It has become a favoured stop for firms rerouting their trade.
Steady Outperformers
Indonesia, too, holds its place as a regional outperformer. Strong domestic demand and trade flows keep it growing near 5%.
These economies ride the slipstream of the bigger players. The reshuffle of Asia‘s map is lifting them along the way.
The Read
An AI-driven earnings boom has redrawn Asia’s pecking order, lifting the chip hubs of Taiwan and Korea so high that their combined stock markets now outweigh those of India and China together. Taiwan has overtaken India to become the world’s fifth-largest market, while Korea’s main index has rallied to repeated record highs on the strength of its memory-chip makers.
India, with no large-scale chip industry to ride the wave, has watched foreign investors pull a record sum from its market this year, as the AI theme outshines its prized consumption story. Fresh figures this week are expected to show Taiwan’s export orders leaping again, led by semiconductors, with the island at the very heart of the global build-out.
Around the boom, China’s exports to America climbed despite the trade tension, new trade walls rose on steel and Chinese goods, and Japan’s record market sat uneasily atop forty-year-high borrowing costs. The thread of the day was a region whose order is being rewritten by semiconductors, with the winners pulling away and the laggards watching from outside.
What to Watch
- Today · Taiwan and Korea’s combined markets now outweigh India and China together
- Today · Taiwan’s export orders are expected to surge again, led by semiconductors
- Today · India sees a record outflow of foreign capital as the AI theme outshines it
- Today · Korea’s chip rally lifts shares and consumer confidence toward records
- Today · China’s shipments to America jump a third in May on a technology push
- Recent · Trade walls rise on steel and Chinese goods even as chips flow freely
- Recent · Japan’s record market sits atop forty-year-high borrowing costs
- Recent · Vietnam and Indonesia ride the slipstream as supply chains shift
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