AI boom drives emerging Asian stock markets to record highs; rising oil prices and a stronger US dollar weigh on Asian currencies

Golden Ten Data reported on June 1 that driven by sustained enthusiasm for artificial intelligence trading, emerging Asian stock markets have risen to record highs. Despite the ongoing war in Iran, the AI boom has supported global stock markets. The MSCI Emerging Markets Index rose by as much as 2% on Monday, reaching an all-time high, led by AI leaders in South Korea and Taiwan, China. Denise Cheok from Moody's Analytics said: "Although there are numerous risks lurking in the near term, the AI boom continues. The industry's tailwinds have fueled growth in some parts of Southeast Asia that participate in the tech ecosystem, but concentration in a single sector also poses the risk of a sudden drop in AI demand." Meanwhile, rising oil prices have put external fiscal pressure on several Asian countries that are net fuel importers. This has weighed on their currencies, with the Indonesian rupiah and Indian rupee being the worst-performing currencies so far this year. Wee Khoon Chong, an Asia-Pacific market strategist at the Bank of New York, stated, "Stock market strength has not translated into currency strength. Asia-Pacific currencies are weighed down by a stronger US dollar and a rebound in crude oil prices, with recent terms-of-trade pressures being the biggest drag on many Asia-Pacific currencies."