The episode covers how Asian markets, particularly in AI and tech sectors, are showing resilience and outperformance despite global economic uncertainties, with China’s Zhipu and other firms accelerating the AI race and influencing regional growth. It also highlights key earnings reports, commodity policy shifts, and major geopolitical developments, illustrating the dynamic interplay between innovation, market trends, and policy in Asia.
The China Show episode from February 12, 2026, opened with a focus on Asian markets reacting to a stronger-than-expected US jobs report, which led traders to scale back expectations for imminent Federal Reserve rate cuts. This so-called “scare trade” spread to Asia, with sectors like real estate services and biotech tracking declines seen on Wall Street. Despite this, Asian equities, particularly in the MSCI Asia Pacific Index, continued to outperform US markets, buoyed by strong regional economic momentum and enthusiasm for AI-related industries. The show highlighted the resilience of Asian markets, noting that local narratives and drivers, such as AI innovation and supply chain strength, were increasingly distinct from US trends.
A major theme was the intensifying AI race in China, with companies like Zhipu (ZTE) and DeepSeek rolling out new, more powerful AI models. Zhipu’s latest model, benchmarked against Anthropic’s offerings, was set to launch with double the parameters of its predecessor, signaling China’s rapid progress in generative AI. The show discussed how these advancements are not only boosting the stock prices of Chinese tech firms but also prompting US competitors to refocus on fundamental research. The hosts noted that while AI poses existential threats to some business models, Chinese firms are leveraging their position at the start of the AI supply chain to drive regional growth.
Earnings reports were another focal point, with NetEase’s disappointing fourth-quarter gaming revenue missing Wall Street estimates and leading to a notable stock decline. However, analysts from JP Morgan and Jefferies remained optimistic about NetEase’s long-term prospects, citing the company’s proactive integration of AI into its operations. The show also covered other key earnings, including Lenovo and Budweiser, highlighting broader trends such as declining alcohol consumption in Asia and the ongoing challenges faced by traditional tech and consumer companies amid shifting market dynamics.
Commodities and macroeconomic policy developments were also discussed, particularly Indonesia’s decision to sharply cut nickel output in an effort to support global prices. This move, affecting two-thirds of the world’s nickel supply, was expected to rebalance the market and benefit upstream producers, with ripple effects across battery and EV supply chains. The show also touched on China’s monetary policy, including larger-than-expected liquidity injections by the PBOC ahead of the Lunar New Year, and the ongoing strength of the renminbi against the US dollar.
Finally, the episode featured interviews with key industry figures, including Binance co-CEO Richard Teng, who addressed recent volatility in crypto markets and Binance’s efforts to compensate users after a major liquidation event. The show also covered trending topics in China, such as President Xi Jinping’s rare public reference to military corruption investigations and his pre-Lunar New Year visits to various community groups. Geopolitical updates included US-Venezuela energy talks and President Trump’s ongoing negotiations with Israel and Iran. Overall, the episode painted a picture of a dynamic and rapidly evolving Asian market landscape, shaped by technological innovation, shifting global trade, and domestic policy responses.