AI panic trading cooled, Asian chip stocks hit record highs, gold and silver fell, London copper rose 2%, Bitcoin fell deeply

# Zhang Yaqi

Global equity markets stabilized following sell‑offs driven by artificial intelligence (AI) and tariff concerns. South Korea’s stock market closed 2.1% higher, helping the MSCI Asia Pacific Index erase early losses. Gold and silver retreated after four consecutive days of gains. U.S. Treasury yields gave up their American‑session advances, while Bitcoin posted its worst monthly performance since the June 2022 crypto crash, falling to around $63,000. The U.S. Dollar Spot Index rose 0.1%.

Signs of easing emerged in the AI “panic trade,” with Asian equities and U.S. stock futures rising on Tuesday as investor risk appetite improved. Shares of Asian chipmakers including Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing Company (TSMC) surged to record highs, with traders viewing these firms as “money‑printing machines” for the AI supply chain. Meanwhile, U.S. software, insurance, and professional services stocks remained under pressure.

Asian equities edged higher, reversing weakness from the U.S. market, with S&P 500 futures up 0.3%. South Korea’s stock market rose 2%, helping the MSCI Asia Pacific Index wipe out early losses to close 0.1% higher. European equities were also set to open higher.

As risk sentiment recovered, gold and silver pulled back after four straight days of gains. U.S. Treasury yields erased their U.S.‑session gains, and Bitcoin recorded its worst monthly performance since the June 2022 crypto crash, dropping to around $63,000. The U.S. Dollar Spot Index climbed 0.1%.

This market divergence highlights the contrasting fortunes of Asian and U.S. tech stocks. The MSCI Asia Index has risen 12% so far in 2026, while the S&P 500 is nearly flat—marking the strongest start‑of‑year relative performance for the Asian index against its U.S. benchmark on record. Investors are betting that Asian chipmakers will benefit from AI infrastructure build‑out, while U.S. business services, software, and financial intermediation businesses face risks of AI disruption.

- The Nikkei 225 closed down 0.9% at 57,321.09 points.

- Japan’s Topix index rose 0.2% to 3,815.98 points.

- South Korea’s KOSPI closed 2.1% higher at 5,969.64 points.

- India’s NIFTY IT Index fell 5%, on track for its lowest level since July 2023.

- S&P 500 futures gained 0.3%.

- The U.S. Dollar Spot Index rose 0.1%.

- The Japanese yen fell 0.4% to 155.27 per dollar.

- The U.S. 10‑year Treasury yield rose 1 basis point to 4.04%.

- Spot gold dropped 0.8% to $5,189.99 per ounce, ending a four‑day winning streak after rising 2.5% the previous session.

- Copper prices rose 2.3% to around $13,200 per tonne, with aluminum also advancing.

- Oil prices neared seven‑month highs. Brent crude futures rose 0.8% to $72.08 per barrel, while U.S. crude futures gained 0.9% to $66.88 per barrel.

- Bitcoin fell as much as 2.64% intraday to $62,858. It has slumped more than 19% in February, on track for its worst monthly performance since June 2022.

## Decoupling Trend Emerges Between Asian and U.S. Markets

“The AI panic trade sweeping U.S. markets is a rotation story—generative AI is repricing revenue models for enterprise software, professional services, and wealth management platforms,” said Christopher Forbes, head of Asia at CMC Markets. “Asian equity indices have almost no exposure to this. Decoupling has begun.”

Carmen Lee, head of equity research at OCBC Bank, said this trend could persist for some time. Mohit Mirpuri, senior partner at SGMC Capital, noted: “In the first two months of this year, we’ve seen more targeted allocations to Asia and emerging markets. This doesn’t necessarily mean a structural decoupling, but it does signal that global portfolios are broadening exposure beyond the narrow U.S. tech‑centric trade.”

The strong performance of Asian markets stands in stark contrast to the U.S. On Monday, U.S. tech, delivery, and payment stocks declined after Citrini Research released a report outlining AI’s potential risks across industries. Ongoing uncertainty over President Trump’s tariff policies exacerbated market weakness.

Bloomberg strategist Mark Cranfield noted that Asian investors remain convinced that companies serving as “money‑printing machines” for the AI race will be rewarded, with the Bloomberg Semiconductor Index outperforming sharply. The momentum among regional leaders is so strong that even a very poor earnings conference from Nvidia this week would struggle to derail the rally.

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