Under the tide of AI boom, Asian technology stocks lead the way, and emerging market indices are gaining momentum to challenge historical highs.

Boosted by the continued strength of Asian technology stocks and the general rise in global stock markets, emerging market stocks are expected to hit historical highs. The MSCI Emerging Markets Index rose 1.3% on Monday, potentially surpassing the peak set five years ago. Korean semiconductor and Kuaishou Technology were among the best-performing stocks of the day, both rising by more than 10%. This uptrend reflects strong investor demand for artificial intelligence-related assets, which remain a focus of the global stock market. Benchmark stock indices in South Korea, Taiwan, and the Asia-Pacific region also hit new highs. Emerging market assets have performed strongly since the beginning of the year, with analysts expecting this uptrend to continue until 2026 as soft prospects for the US economy put pressure on the US dollar. Many suppliers in Asia's artificial intelligence supply chain have also helped the region stand out. However, these gains are also accompanied by some issues. As the market heats up, concerns about overvaluation have caused fluctuations in the stock prices of some large artificial intelligence and technology companies. Charu Chanana, Chief Investment Strategist at Shengbao Bank, said, "In the short term, emerging markets may continue to receive support, but the trend may be more cautious and volatile, rather than a straight upward trajectory. Favorable factors include the continued momentum of Asian technology and artificial intelligence supply chains, especially in a situation where global risk appetite remains strong." Traders are currently looking for new catalysts to drive the next round of gains, with upcoming US economic data and key corporate earnings reports providing clues to the market's health. Concerns about the Federal Reserve's rate cut plans and geopolitical tensions intensifying as the US strikes against Venezuelan leaders are keeping market sentiment cautious.