Asian Tech-Heavy Indexes Are Leaving The Others Behind

Asian tech-heavy indices have outpaced others this year, illustrating how AI-related demand is reshaping regional markets. The Nikkei 225 remains heavily weighted toward chip makers like Tokyo Electron and Advantest, each around 10% of the index. Other components in the gauge reflect a broader AI spend across the region. In contrast, the US Nasdaq, though up about 22% year-to-date, trails Asia’s pace. Investors worry that heavy AI-related expenditures by Amazon, Alphabet, and Microsoft could weigh on profits and inflate valuations there. MSCI’s decision on Korea and Taiwan could move them from emerging to developed status, potentially unlocking inflows and reshaping exposure for AI proxies.