Stocks Rise, Citrini-Powered AI-Powered Scare Trade Eases – Asia Market Wrap

The AI-driven “scare trade” fuelled by concerns about the technology’s impact on businesses, showed signs of cooling as Asian stocks and US equity-index futures rose.

Asian shares edged higher, defying US losses, as sentiment appeared to tighten up, with S&P 500 contracts up 0.2%. European stocks were likewise poised for a good start. SK Hynix, Samsung , and TSMC all set new marks as traders poured into chipmakers, seeing them as the “picks and shovels” of the AI supply chain.

As risk appetite strengthened, gold and silver fell after a four-day surge. Treasuries pared gains from the previous US session, as investors sought traditional haven assets. Bitcoin dipped to roughly $63,000.

The moves in Asia, where markets have outperformed the US this year and have mostly avoided tech-driven falls, came after US indices dipped on Monday. Shares in technology, delivery, and payment companies fell after Citrini Research released a research highlighting potential AI dangers across industries. The downturn was exacerbated by the ongoing uncertainty around Trump’s tariffs.

South Korean stocks surged 2%, while Taiwan’s jumped 2.7%. China also rose on its return from Lunar New Year holidays, allowing the MSCI Asia Pacific Index to recover earlier losses and increase 0.2%.