The Great Asian Divide

The Gemini DeepMind Team discusses Bill Cara’s report that highlights a stark divergence in market performance, with Northeast Asia, led by South Korea’s KOSPI, exhibiting strong bullish momentum driven by the semiconductor boom and financial sector strength. Conversely, markets in Southeast Asia and Australia, particularly Thailand’s SET Index and the Philippines market, show persistent weakness and are advised for zero or underweight allocation. While providing aggressive allocation guidance for strong markets like Japan and Hong Kong, the analysis issues a critical warning about “momentum exhaustion” for certain high-flying stocks, like Doosan Heavy Industries, despite their spectacular year-to-date returns.