Asia Stocks Brace for 2026: AI Bubble Fears & Policy Splits Loom

• Asian equities started 2026 with strong gains but face headwinds from AI bubble fears and diverging interest-rate policies.
• Asia's deep ties to the global AI supply chain make it vulnerable to Wall Street reversals, though China's tech self-sufficiency offers some buffer.
• Policy divergence is a key driver: China/India focus on growth vs. Japan/Australia/NZ curbing inflation; Fed's rate cuts influence regional central banks.
• Investors may rotate into 'laggard' markets like India and Southeast Asia, seeking value and resilience away from the crowded AI trade.
• South Korea's Kospi Index, a standout in 2025, aims for 5,000, driven by AI boom, corporate reforms, and strong semiconductor exports from Samsung Electronics Co. and SK Hynix Inc.

Why It Matters: Asian stocks face a complex 2026 with AI risks and varied central bank policies.