ASIA STOCKS: Positive AI News Sees Sector Bounce; Major Bourses Up

After yesterday's declines Asia's major bourses have had a better Tuesday, with most major indexes delivering positive gains.  The NIKKEI is up around 2% taking back around half of yesterday's losses with key AI / tech names like Tokyo Electron +10%, Advantest +5% and KIOXIA +4.6% whilst the bellwether AI stock Softbank is down -2.2%. 

The oversubscription of SpaceX's IPO and the Nvidia / SK Hynix deal was enough to re-ignite the interest in the super hot sector.

The KOSPI grasped onto the SK Hynix news and is up +7.6% recovering over 90% of yesterday's losses.  Unsurprisingly SK Hynix +9% and Samsung +4.6% led the way despite of news of potential troubles in the newly launched leveraged AI tech ETF markets.  A leveraged exchange-traded fund tracking SK Hynix Inc. deviated sharply from the underlying stock’s move for a second day, underscoring the risk of investing in such products.

Onshore China is posting strong gains today as economic data points to the growing strength of the economy.  Exports in May jumped +19.4% YoY whilst signs that the domestic economy is improving showed up in stronger than expected Imports at +27.4% YoY.  AI stocks are performing strongly as the government released a plan on accelerating development of data sets to support AI deployment across industries including manufacturing, finance, healthcare, education, as well as emerging areas such as embodied intelligence, intelligent driving.

After falling near 15% over the last four trading days, bargain hunters stepped in today in Indonesia and the JCI is up +5.3%, despite bonds and the Rupiah remaining on a knife edge.