Markets

• The Business Times reports AI enthusiasm propelled markets higher, with gains concentrated in a handful of mega-cap tech firms while broader corporate earnings lag behind soaring valuations. • Hong Kong emerged as an AI startup launchpad, achieving a five-year high in fundraising during Q1 2026, alongside Chinese VC/PE funding surging past 400 billion yuan (US$59 billion). • ChiNext Index reached an 11-year intra-day high of 3,785.23 on April 23, fueled by funds piling into optical-communication stocks like Zhongji Innolight and Eoptolink on bets of US AI infrastructure demand.

• South Korea's Kospi index surged 78% year-to-date, with Taiwan shares among the world's top performers this month as investors redirect capital flows to Asian equities for the next leg of the global rally. • Morgan Stanley forecasts Asia's fixed asset investment will jump from $11 trillion in 2025 to $16 trillion by 2030, driven by AI infrastructure, energy security, and defense spending reshaping the region's industrial cycle. • Semiconductor giants Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing Co. are key beneficiaries, with implied volatility for Taiwan and Korea climbing to peak levels versus the S&P 500 as option costs rise amid investor enthusiasm.

• Singapore's Straits Times Index (STI) dropped 20.06 points or 0.4% to close at 4,921.90 on May 8, 2026, amid a broader regional retreat. • Hongkong Land was the worst performer among STI constituents, plunging 5.2% or US$0.45 to US$8.25. • OCBC bucked the trend, rising 0.2% to S$21.92 after reporting a 5% quarterly net profit increase to S$1.97 billion for Q1 ended March 31.

• JPMorgan analysis shows markets repricing oil-driven inflation risks, with global equities adjusting to potential rate hike scenarios amid recent oil price surges. • Central banks are providing clearer signals on monetary policy, suggesting rate hikes may not materialize as aggressively as feared despite elevated energy costs. • The divergence highlights inflation fears running ahead of underlying economic reality, potentially creating buying opportunities if data moderates.

• Asian stock markets fell broadly on Friday as renewed clashes between the US and Iran strained ceasefire efforts, with missile and drone attacks prompting US retaliatory strikes on Iranian military facilities. • Tokyo's Nikkei 225 dropped 1.1% to 62,174, retreating from a record high of 62,833 reached Thursday, while SoftBank Group lost over 5% and Hong Kong's Hang Seng fell 1.3% to 26,289. • Oil prices climbed amid Middle East uncertainty, with Brent crude rising 1.1% to $101.13 per barrel—roughly 44% higher than pre-war levels in late February.

• Syfe, a regional investment platform, announced it has reached $10 billion in assets under management, marking significant growth in the Asia-Pacific investment sector as of May 2026. • The platform reported a threefold increase in trading activity, driven by investors shifting away from US-only portfolios to explore broader geographic exposure and diversified investment strategies. • The milestone reflects growing investor appetite for digital wealth management solutions in Asia and indicates expanding confidence in regional investment opportunities beyond traditional US-focused strategies.

• Japan's Nikkei 225 Index jumped nearly 6% after returning from holiday, joining South Korean and Taiwanese equities at record peaks on strong AI-driven tech earnings momentum. • South Korea's KOSPI surged 75% year-to-date, the world's best-performing major stock market, while Samsung joined the $1 trillion company club amid the regional rally. • The AI boom is showing disproportionately in Asia compared to U.S. markets, with Taiwan stocks up 45% and Nikkei up 25% for 2026, outpacing the Nasdaq's 11% gain.

• Indian benchmark indices rallied strongly on May 7, 2026, with Sensex gaining nearly 941 points and Nifty closing above 24,300 for the second consecutive day amid broad-based buying. • Gains were led by banking, auto, metal, and pharma sectors, extending the Nifty's positive momentum despite global uncertainties. • The rally signals renewed investor confidence in domestic growth, supported by easing oil prices and positive corporate sentiment.