Amid sharp fluctuations in US technology stocks and prices of metals like gold and silver, Asian equity markets are attracting a surge of global investors. According to a Bloomberg report, against the backdrop of another potential "big market year," Asian stock markets continue to outperform their counterparts in the US and Europe. Overseas investors are progressively losing interest in dollar-denominated assets, with capital flowing into Asian markets supported by artificial intelligence and strong economic fundamentals. This trend may help propel Asian markets into another significant investment year in 2026.
Asian markets are demonstrating robust performance. Bloomberg noted that indices tracking Asian markets extended their strong momentum from 2025, rising 7.5% in January this year, marking the largest monthly gain since 2023. After Wednesday's close, Asian stocks continued their upward trajectory, again reaching record highs and helping major indices outpace the S&P 500 and Europe's Stoxx 600.
Concurrently, with expectations for US interest rate cuts being pushed back and increased uncertainty in the AI sector, investor confidence in US tech stocks, precious metals, and cryptocurrencies is gradually waning.
Yao Yuan, Senior Investment Strategist for Asia at Amundi, recently told Bloomberg that three major investment themes are converging to boost Asian markets: artificial intelligence, corporate reforms being advanced in multiple Asian countries, and the ongoing improvement in Asia's economic fundamentals.
The report stated that as the global focus of tech competition shifts from pioneers in AI technology to enablers of large-scale application, Asia is winning investor favor. The region controls key segments of the AI supply chain and provides substantial hardware support for AI infrastructure development. At the corporate level, leading Asian tech firms are solidifying their roles as indispensable links in the AI supply chain. From South Korea to Japan, countries are actively taking measures to enhance shareholder returns.
The Australian Financial Review reported that global investors are turning to Asian tech giants. The wave of the AI revolution, combined with deepening corporate governance reforms within the region, is pushing regional stock markets into the ranks of the world's top performers.
Snead, President of Goldman Sachs Asia Pacific, told CNBC that Asia, particularly the Chinese market, is regaining significant attention. This is partly due to the resilience shown by the region and its impressively rapid development in the technology sector.
According to a report by BusinessWorld in the Philippines, Metropolitan Bank & Trust Company stated that its high-net-worth and ultra-high-net-worth clients are increasing their investments in Asia and emerging markets in response to volatility in developed markets. Due to more attractive valuation levels and earnings prospects in Asia and emerging markets, affluent investors are allocating more assets to these regions.
The International Monetary Fund predicts that Asia will contribute approximately 60% of global economic growth this year. Strong economic fundamentals, coupled with a weaker US dollar, are further enhancing the appeal of Asian markets.
Bloomberg reported that since the beginning of 2026, stock markets in most Asian countries have continued their ascent. Regional currencies have shown considerable resilience against external shocks, and growth in credit demand has also helped narrow interest rate spreads to near historical lows. Although Asia has not been entirely immune to global market volatility, the region is supported by multiple positive factors.
Wall Street is no longer solely focused on the US. Last spring, "underweighting the US" became popular on Wall Street; now, the favored trade is buying into other global markets. The Wall Street Journal reported that so far in 2026, several global indices, including Europe's Stoxx 600, South Korea's KOSPI, and the MSCI Emerging Markets Index, have outperformed major US benchmark indices. After years of heavy bets on large US companies, investors are shifting more capital into international markets, wagering that the substantial US lead over the rest of the world will narrow.
Fund managers indicate that the perception of US stocks as almost the only investable market for years is now changing. The trend of capital flowing overseas has noticeably accelerated. According to data from Morningstar, investors made a net investment of $51.6 billion into international stock exchange-traded funds (ETFs) in January.
"We are now in a global bull market," said Keith Lerner, Chief Investment Officer at Truist Advisory Services. "This rally is no longer just a US story."
Lorenzo, Chief Investment Officer at Angeles Investments, stated that over the past decade, his portfolio was heavily concentrated in the largest US tech companies. However, over the past year, he has gradually moved capital into a portfolio of global small-cap and value stocks, with a focus on European and Chinese markets. "For us, this is a very significant adjustment," Lorenzo said. This strategic shift began last April when the US dollar weakened amid tariff turmoil. "In my view, this reflects some decline in confidence in the US economy and markets," Lorenzo added.
Don Calcagni, Chief Investment Officer at Mercer, also expressed concerns about the US market outlook in an interview with The Wall Street Journal, citing worries such as the ballooning national debt and political and economic uncertainty stemming from the US government.
The Chinese market continues to be viewed optimistically. China's major stock indices have outperformed the US S&P 500 and Nasdaq indices this year. Particularly, the Star Market had achieved double-digit gains by February 11, clearly outpacing the Nasdaq index. Reuters reported that as global capital gradually flows back into China, policymakers are also actively sending signals to enhance the market's long-term appeal. China's benchmark Shanghai Composite Index rose 18% cumulatively in 2025, its best performance in six years, outperforming the S&P 500's 16.4% gain over the same period.
Recently, Chinese stocks experienced their largest inclusion in MSCI indices in nearly three years. This adjustment not only brings direct capital inflows but is also likely to prompt global active funds to reassess the allocation value of the Chinese market.
Bloomberg reported that index compiler MSCI has included 37 Chinese companies in its global standard index following its latest review, representing the largest expansion for Chinese stocks since May 2023. The report stated that this adjustment has injected new momentum into Chinese stocks, which have been rebounding since last year. As China enhances its market appeal through technological advancement and trade resilience, coupled with investors gradually moving away from US assets, the increased weighting of Chinese stocks in global benchmark indices may prompt active funds to reevaluate their allocation exposure to the world's second-largest stock market.
Liu Junbei, Co-founder of Ten Cap Investment, said that the increased weighting could signal a growth trend for the coming period and might trigger more buying interest in the Chinese market. Hong Hao, Chief Investment Officer at Lianhe Asset Management, stated that more Chinese companies are likely to be included in the indices in the future because "new growth is coming from new industries." He suggested that global investors should pay more attention to the Chinese market to discover genuine growth opportunities.