Global traders are shifting their focus towards Asia as the next big leg in the stock market rally. South Korea and Taiwan are leading the charge, powered by strong demand for artificial intelligence hardware. India, however, is falling behind due to currency weakness and limited exposure to the technology sector.
South Korea’s Kospi index has jumped nearly 78% this year, with chipmakers like Samsung Electronics and SK Hynix driving gains. Taiwan Semiconductor Manufacturing Company (TSMC) has lifted Taiwan’s Taiex, making it one of the strongest markets worldwide. These rallies reflect investor confidence in AI‑linked industries, where semiconductors and memory chips are seeing record demand.
India’s Sensex, in contrast, has dropped 9.3% in 2026, ranking as the second‑worst performer globally. Heavy reliance on oil imports and a weak rupee have weighed on performance. Analysts say India’s limited presence in AI hardware has kept it from joining the global rally.
Volatility is rising in Korea and Taiwan as traders pile into leveraged ETFs and short‑term bets. While momentum remains strong, experts warn of possible overshoots. A reversal would require calmer geopolitics, stable oil prices, and a pause in the tech surge conditions not yet visible.
For now, Asia’s AI boom is powering global markets, leaving India struggling to catch up.
