From mint · · 1m 30s
US Election Shift Revives Indian and Chinese Stocks
US election results trigger anti-AI trade shift, boosting Indian and Chinese stocks.
In brief
US election results trigger anti-AI trade shift, boosting Indian and Chinese stocks. Investors are buying Indian and Chinese stocks as the US election reshapes AI trade dynamics. Originally reported by mint.
US Election Impact on AI Trade
The unraveling of the AI trade after the US midterm elections is forcing investors to rethink their Asia playbook.
Investor Shift to Asian Markets
Aberdeen Investments favors markets powered by stronger domestic growth, including India and Vietnam, and sees upside in Chinese technology firms.
China and India as Hedges
Hao Hong, chief investment officer at Lotus, said he is betting against oil and petrochemical firms and going long precious metals and Hong Kong equity futures.
Hong Kong Market Gains
A Hong Kong gauge tracking mainland companies gained 5.2% last week, its best performance since March 2025.
India's Market Surge
India’s benchmark Nifty 50 gained 8.6% last week, registering its best week since 2021, as foreign funds poured a net $1.9 billion into local shares.
Investor Reactions
Utkarsh Singh, a Mumbai-based senior manager at SBI-SG Global Securities Pvt., started taking calls from clients in Singapore as early as 6:30 a.m. Friday.
Beyond AI Focus
Allianz Global Investors sees opportunity in healthcare and consumer staples firms, while Korea’s consumer stocks benefit from limited US tariff risks.
Market Outlook
Foreign investors are likely to continue selling Asia’s AI stocks, with India and China as the only two large liquid markets offering non-AI exposures.
What matters most
Investors are buying Indian and Chinese stocks as the US election reshapes AI trade dynamics.
