Institution: AI Rally Expected to Continue Driving Asian Stock Markets in the Second Half of the Year

Odaily Planet Daily News Julius Baer stated in a report that the AI boom may remain a key driver for Asian stock markets in the second half of the year. Analyst Richard Tang maintains an overweight rating on the Japanese, South Korean, and Chinese stock markets, supported by a strong earnings cycle.

Japan benefits from optimism surrounding the "high-price economy" and corporate governance reforms, which are expected to attract more foreign capital inflows. In South Korea, due to the current shortage of memory chips, the stock market rally may also continue. Richard Tang believes that China's A-shares offer a stronger AI exposure compared to H-shares, and this trend is expected to persist. In Southeast Asia, Julius Baer is bullish on Singapore, citing its strong currency and high market yields; whereas the Indian market may experience a relative recovery later this year, supported by rising household savings and favorable demographic structures. (Jin Shi)