Stocks in Asia & Europe Grow Ahead of US Benchmarks – Asia Market Wrap

In February, stocks in Asia and Europe were expected to outperform US indexes as the so-called AI fright trade shook Wall Street, prompting investors to shift into regions perceived to be more resilient to disruption risk.

The MSCI Asia Pacific Index gained over 7.1% this month, marking the highest February performance since the index’s inception in 1998. Europe’s benchmark index has risen 3.6%, on track for its eighth consecutive month of advances – the best winning streak in nearly 13 years. In comparison, Wall Street gauges have declined this month, with equity-index futures indicating further losses for Friday.

South Korea, a barometer for investments in artificial intelligence gear, has been a remarkable performance in Asia, with the Kospi Index up nearly 20% this month. It is also the world’s top-performing indicator this year, with a 49% increase year to date.

Treasuries pushed higher, with the 10-year yield falling 1 bps to 3.99%, its lowest level since late November.

In commodities, oil prices stabilised after the US and Iran agreed to resume nuclear talks next week following a session of talks on Thursday, but a massive deployment of American military in the Middle East kept the market nervous. Gold was also on track to end its greatest streak of monthly increases since 1973, with February’s 6% increase marking the eighth in a row.