Asia Stocks Show Best Start This Century Versus the US – Asia Market Wrap

Asian shares rose for the fifth day in a row, extending their lead over the US this year as lower valuations and stronger growth prospects enticed buyers. Treasuries held their losses on higher US employment statistics.

The MSCI Asia Pacific Index increased by 0.7% to set a new record. The gauge is up approximately 13% this year, the strongest start to a year relative to the S&P 500 this century. The US measure is up just 1.4%, ranking 69th out of 92 indices. South Korea is the world’s best-performing market, up 31%.

Equity-index futures indicated that Asia’s advances on Thursday were likely to spill over to Europe and the US.

In what is shaping up to be another record-breaking year, Asian markets are outperforming those in the US and Europe, attracting global investors who have gradually unwound some of their Dollar exposures. Investors are positioning themselves to benefit from the AI boom, as firms invest billions of Dollars in the technology, altering and disrupting numerous industries.

The Yen outperformed its G-10 peers in the currency market, and Japan’s super-long bonds surged after PM Takaichi’s landslide election victory alleviated budgetary concerns. Gold and silver both fell, while the Dollar fell for the sixth consecutive session.