Asian equities experience strongest yearly opening on record, regional currencies gain momentum

Asian Markets Experience Record-Breaking Start to the Year

Photographer: Michael Nagle/Bloomberg

Asian equities are off to their strongest opening ever, with both regional currencies and bonds climbing as investors look beyond the US for new opportunities.

In the first four trading days of 2026, the MSCI Asia Pacific Index has surged by about 4%, marking its most robust kickoff since records began in 1988. South Korea and Taiwan have been at the forefront of these gains. Meanwhile, a regional currency index has seen its best early-year performance since 2023, and corporate bonds denominated in US dollars have also advanced.

Raymond Sagayam, managing partner at Banque Pictet & Cie SA, shared on Bloomberg Television that the era of US market dominance appears to be waning. He believes that emerging markets across Asia are poised to benefit from favorable factors such as appealing valuations and their integral role in the AI supply chain.

These trends highlight the growing attractiveness of Asian assets for global investors, especially as concerns mount over lofty tech valuations in the US and the potential for a weaker dollar. The momentum in Asia’s technology sector continues, with major players like Samsung Electronics and Taiwan Semiconductor Manufacturing driving recent advances.

Technology-focused indices, including South Korea’s Kospi and Taiwan’s Taiex, have soared by 7.4% and 5.6% respectively this year, both reaching new highs. Chinese shares have also hit their highest levels in four years, buoyed by ongoing optimism about the nation’s AI progress and early signs of economic recovery.

According to Nick Ferres, chief investment officer at Vantage Point Asset Management in Singapore, companies involved in Asia’s AI ecosystem remain undervalued compared to their global counterparts. He notes, “We are only midway through the AI capital expenditure super cycle and the resulting surge in productivity.”

©2026 Bloomberg L.P.