Digit Gains

• Asia hedge funds have achieved triple-digit gains through May, driven by a powerful AI-led market rally. • Hong Kong’s WT Asset Management reported a net return of 103% for its long-short China Focus fund year-to-date, including a 20% surge in May alone. • The rally has pushed stock markets in Japan, South Korea, and Taiwan to record highs, overcoming volatility caused by the Iran war.

• Taiwan's listed semiconductor and electronics companies reported robust revenue growth in May 2026, driven primarily by the AI supply chain. • Server makers and memory chip providers saw triple-digit gains, highlighting a structural reordering of the sector's top earners. • The data reveals a widening performance gap between companies benefiting from AI infrastructure and those tied to legacy consumer electronics.

• The European Commission unveiled a "tech sovereignty" plan on Wednesday designed to reduce Europe's heavy reliance on foreign technology providers. • Rather than attempting to shut out American competitors, the strategy focuses on boosting domestic European champions to strengthen the region's digital infrastructure. • This move matters as the EU seeks to secure the critical technologies that underpin the modern economy and decrease vulnerability to external digital supremacy.