Chips, K-Shapes, and K-Pop

Stocks bounce back to chase AI and SpaceX hype as macro data flash amber.

Key Takeaways

• Asia’s AI Rally Meets China’s Growth Drag: Asia’s rebound was powered by the AI chip trade, with the MSCI Asia Pacific Index up +2.5% and Korea’s KOSPI surging +8.4% on strength in Samsung and SK Hynix. Japan also joined the rally, with the Nikkei 225 up +3.1% and the TOPIX gaining +1.6%. But China remains the weak link. The yuan strength weighed on export-sector sentiment, while the PBOC’s decision to keep the loan prime rate unchanged, at 3%, for a 12th straight month, along with less dovish language, dampened hopes for broad stimulus this year. The result is a split Asian market: AI-linked Korea and Japan are bouncing hard, while China remains trapped between currency strength, weak confidence, and limited policy support.