Asia Stocks Jump 12% in 2026 as Nasdaq Sheds $1.5 Trillion

Wall Street's anxiety over AI disruption is starting to look like Asia's opportunity. As fears build in the US that new AI models could undermine software, legal and real estate service providers, capital appears to be rotating toward the region's hardware champions. The MSCI Asia Pacific Index has advanced more than 12% in 2026, while the S&P 500 (SPY) is down 0.2% and the Nasdaq 100 has slipped around 2%. Over the past 10 sessions alone, the Nasdaq 100 has fallen 4.6%, wiping out roughly $1.5 trillion in market value, underscoring how sharply sentiment has shifted away from perceived AI losers.Investors increasingly seem to be favoring upstream beneficiaries of AI infrastructure spending, where revenue streams could prove more resilient regardless of which applications ultimately dominate. Surging memory chip prices have supported regional heavyweights such as Samsung Electronics (SSNLF), which recorded its largest overseas buying session on Thursday, sending shares up 6.4%, followed by additional gains on Friday. In Japan, Kioxia Holdings surged 15% after issuing a better-than-anticipated outlook tied to strong AI demand. Taiwan Semiconductor Manufacturing Co. continues to anchor flows into Taiwanese equities, with global investors posting their third-largest weekly purchase in a holiday-shortened week. Market participants have also cited Micron Technology's comments on memory supply tightness and Nvidia's remarks on sustainable spending as reinforcing the case that upstream suppliers may continue collecting revenue even as end-market uncertainty persists.Market structure is amplifying the divergence. TSMC now accounts for nearly 45% of Taiwan's Taiex index, roughly triple its weighting a decade ago, while Samsung Electronics and SK Hynix (HXSCL) together represent close to 40% of South Korea's Kospi. At the same time, parts of Asia seen as less exposed to AI disruption have held firm, with Japan's Topix insurance sub-index rising 6.2% since Feb. 3 and its real estate counterpart gaining 15%. The rolling weekly correlation between Asian and US equities has slipped to 0.43, the weakest level since June 2022, suggesting regional differentiation could be deepening. Although software names such as Kingdee International Software Group and India's Infosys declined alongside US peers, many investors argue Asian markets could continue to outperform, supported by their role as AI enablers, relatively cheaper valuations and stronger earnings growth dynamics.