Wave Asian

• A potential "Super El Niño" is expected to strain Asian power grids through 2027 by tightening energy supplies and increasing demand. • Peak demand timing varies by region, with China projected to reach 1,575 to 1,600 GW between July and September, while Japan, South Korea, and Taiwan are expected to peak in August. • Vietnam faces a peak demand of approximately 58 GW, whereas India and Thailand have already passed their spring demand peaks.

• Factory activity in several Asian emerging economies, including the Philippines, Malaysia, Taiwan, and Vietnam, expanded or remained steady in June. • Specific data shows the Philippines' activity index held at 50.9, while Malaysia's rose to 50.7 from 49.9 in May. • This growth is driven by a global surge in AI demand, which is helping export-reliant economies offset economic pain caused by ongoing wars.

• Asia's manufacturing sector experienced a boost in June driven by the global AI boom, which increased demand for technology-related goods. • This growth helped offset economic drags caused by the Iran war, providing critical relief for the region's export-dependent economies. • Key indicators showed expansion across emerging markets, with Malaysia's index rising to 50.7 from 49.9 and the Philippines holding steady at 50.9.

• Investors anticipate that massive funding rounds for AI leaders like OpenAI, Anthropic, and SpaceX will trigger a new global wave of technology spending. • This capital influx is expected to benefit a broad supply chain, including manufacturers of server parts, specialized materials, cooling components, and power equipment. • The trend could catalyze a further rally for Asian hardware firms, following the success of industry giants such as TSMC, Samsung Electronics, and SK Hynix.

• Massive investments in companies like SpaceX and OpenAI are triggering a new wave of tech spending across the global artificial intelligence sector. • This financial windfall is expected to significantly benefit Asian manufacturers specializing in server components and advanced materials. • The trend matters as it shifts the focus toward the hardware supply chain, potentially creating a new class of "AI winners" in the Asian markets.

• Wealthy Asian investors have committed $24.3 billion to AI in 2025, spurred by OpenAI's $122 billion funding round and SpaceX's IPO. • South Korean chipmakers Samsung and SK Hynix have reportedly secured supply agreements to support OpenAI’s "Stargate" infrastructure project. • AI startup funding in Asia reached a record $11.2 billion in Q1 2026, with a heavy concentration of investment flowing into Chinese firms.