Asian equities surged in February, led by chipmakers and infrastructure, while gold hit a historic rally above $5,000 an ounce due to safe-haven demand and central bank buying. The video also highlights how AI disruption is reshaping global tech and India’s IT sector, with experts urging adaptation and reskilling to manage risks amid ongoing geopolitical and inflationary pressures.
Asian equities experienced a record-breaking February, driven by an infrastructure boom and a surge in South Korean chip stocks, particularly TSMC and Samsung. Investors are increasingly favoring Asian markets over the US, with significant foreign inflows into Indian equities as corporate earnings stabilize and tariff pressures ease. Despite some concerns about overvaluation and sector-specific risks, such as the impact of AI on software exporters, the overall sentiment remains positive, with expectations of continued growth, especially in high-dividend sectors and chipmakers benefiting from the ongoing memory crunch.
Gold has closed out its longest monthly winning streak since 1973, consistently trading above $5,000 an ounce. The rally is attributed to safe-haven demand amid geopolitical tensions, central bank diversification, and increased investor appetite for hard assets. UBS strategist Jodi Tevis highlighted that while gold remains a crowded trade in terms of sentiment, actual market positioning suggests there is still room for further gains. Silver and other precious metals have also benefited, though silver’s higher volatility and industrial demand make its outlook more tactical compared to gold’s strategic role.
The global tech landscape is being reshaped by AI, with US software stocks experiencing volatility due to fears of disruption and overvaluation. While some funds believe the bottom has been reached, the sector remains highly selective, with winners likely to be those companies that can effectively monetize AI and demonstrate strong earnings potential. In Asia, the memory chip crisis is causing a contraction in smartphone production, disproportionately affecting lower-end Chinese manufacturers, while premium brands like Apple and Samsung are better insulated due to long-term supply contracts.
Geopolitical developments continue to influence markets, with US-Iran nuclear talks resuming and oil prices remaining stable but sensitive to potential conflict. Analysts warn that a significant escalation in the Middle East could push oil prices higher, impacting global growth and inflation. Central banks, particularly in developed markets, remain cautious about inflation risks, with some, like Australia’s Reserve Bank, considering further rate hikes in response to persistent price pressures.
A major theme throughout the discussion is the disruptive potential of AI, especially for India’s $200 billion IT export sector. While some reports predict a doomsday scenario with massive job losses and economic strain, experts like former RBI Governor Raghuram Rajan argue that adaptation, reskilling, and investment in education are key to mitigating risks. The transition to an AI-driven economy is expected to be gradual, with opportunities for India to leverage its skilled workforce and digital infrastructure, provided proactive policy measures are taken to support both high-skilled and moderately skilled service sectors.