Can Asia's AI frontrunners stay the course?

Asia ex-Japan is being shaped by a sharper divide between crowded winners and overlooked opportunities. AI-linked companies in South Korea and Taiwan continue to drive much of the region’s performance, but expectations are high and the margin for error is getting smaller. China offers a different setup, with low valuations creating a more balanced risk-reward profile for investors willing to be selective.

India still has a strong long-term story, but elevated valuations leave less room for disappointment as near-term momentum softens. Thailand sits at the other end of the spectrum, where weak sentiment has left prices subdued and recovery potential less fully reflected. Overall, the region looks less like a broad-based growth trade and more like an environment where positioning, valuation discipline and selectivity matter most.