South · Fortune Technology
Global investors are shrugging off Iran worries and returning to markets in Asia, the ‘backbone of the whole AI value chain’
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◎ Multiple-sources
Asia’s stock markets have rebounded since the outbreak of the Iran war over two months ago, as the AI boom lifts the fortunes of manufacturing economies like China, South Korea, and Japan.
Key facts
- As of April 27, Taiwan’s Taiex is up almost 10% compared to pre-war levels, while South Korea’s KOSPI has risen by 4%
- On April 23, the British Investment Institute, the U.K.’s development finance institution, announced a $1.48 billion Asian climate investment initiative to finance green energy projects across India
- Energy is still a dependency in Southeast Asia,” Aditya Laroia, CEO of Maybank Securities, says
- South Korean firms like SK Hynix and Samsung are cashing in on the high-bandwidth memory (HBM) market, while TSMC dominates in logic chip manufacturing
Summary
“Asia was outperforming global markets before the Iran conflict started,” Charu Chanana, Saxo Bank’s Singapore-based chief investment strategist, tells Fortune. One reason is growing demand for AI and its related infrastructure. South Korean firms like SK Hynix and Samsung are cashing in on the high-bandwidth memory (HBM) market, while TSMC dominates in logic chip manufacturing. “Asia is the backbone of the whole AI value chain,” Chanana explains.