Week in review
- China RatingDog Manufacturing PMI at 51.8 in May
- Europe inflation rate rose to 3.2% in May
- U.S. ISM Manufacturing PMI rose to 54 in May
Week ahead
- China May imports and exports
- U.S. May inflation rate
- ECB interest rate decision
Thought of the week
Equity markets continue to be driven by AI optimism, with the strongest gains increasingly concentrated in a narrow set of hardware and equipment leaders. The top 10 names in Asian hardware and IT equipment have risen sharply, reflecting how aggressively capital has been rushing into the physical infrastructure of AI, including semiconductors, memory, connectivity, robotics and related supply-chain enablers. This week’s Computex event in Taipei further fueled enthusiasm. Technological progress on next-generation HBM chips and renewed excitement around physical AI and robotics added to the momentum. However, the rally’s narrowness remains important: while AI-linked hardware and equipment stocks continue to attract substantial inflows, market leadership has become very concentrated. This concentration may raise the risk of sharper volatility if expectations around AI adoption, capex or earnings delivery begin to disappoint.
Performance by Asian technology companies
USD, rebased to Dec 2021 = 100

Source: FactSet, MSCI, J.P. Morgan Asset Management. Data reflect most recently available as of 31/05/2026. Hardware and IT equipment includes electronic equipment instruments & components, communications equipment, semiconductors & semiconductor equipment and technology hardware storage & peripherals. Software and IT services include IT services, software, interactive media & services and broadline retail. Based on MSCI AC Asia Pacific index and GICS classification.
Market data

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All returns in local currency unless stated otherwise.
Currencies’ return are based on foreign currencies per U.S. dollar. An appreciation of the foreign currency against the U.S. dollar would be positive and a depreciation of the foreign currency against the U.S. dollar would be negative.
