Regional Rotation: Asia and Europe Gain Favor
Key Questions
Why are investors rotating into Asian AI suppliers?
Asia-Pacific equities benefit from AI infrastructure demand in Japan, Korea, and Taiwan plus governance reforms. South Korea's EWY surged 101% YTD on memory demand, creating a valuation gap versus the US.
What is SoftBank's role in Japan's AI push?
SoftBank is pivoting to an AI infrastructure operator with GPU cloud services and dual IPOs targeting $150B. This signals Japan's growing importance in the global AI supply chain ahead of US listings like SpaceX and OpenAI.
How are European markets positioned in the rotation?
European banks and industrials are gaining from AI infrastructure and defense spending. Robeco highlights thematic strategies in smart materials, energy, and mobility as ways to play the pivot to global equities.
Asia-Pacific equities benefit from AI infrastructure (Japan, Korea, Taiwan) and governance reforms, with a valuation gap vs US. South Korea's EWY surged 101% YTD on AI memory demand. SoftBank's pivot to AI infrastructure operator (GPU cloud for sovereign AI, dual IPOs targeting $150B) signals Japan's growing role. Investors are rotating into Asia's AI supply chain ahead of the US listing pipeline (SpaceX, OpenAI, Anthropic). European banks and industrials gain from AI infrastructure and defense spending. Robeco recommends three ways to play the pivot towards global equities, including thematic strategies in smart materials, energy, and mobility.