Markets Pricing 'Perfection': AI Euphoria Eclipses Geopolitical Realities in Asia Session

TOKYO/SEOUL — Global risk appetite unleashed a powerful rally across Asian markets on Monday, with investors aggressively looking past the stunning US military intervention in Venezuela to chase the enduring artificial intelligence narrative.

The disconnect between geopolitical instability and equity market performance was stark. While Washingtons aggressive “Trump Doctrine” unfolds in Latin America, capital flows in Asia remained fixated on semiconductor guidance and corporate capex.

The AI Shield

South Korea‘s KOSPI surged 3.43% to a fresh record high, driven by heavyweights Samsung Electronics (+7.5%) and SK Hynix. Similarly, Japan’s Nikkei 225 reclaimed historic territory, closing up nearly 3%.

> “AI remains the single most dominant driver in the market, with optimism surrounding technology consistently overriding any other macro factor,” noted Charu Chanana, Chief Investment Strategist at Saxo Bank.

Foxconn (Hon Hai) validated this sentiment, reporting a 31.8% year-on-year revenue jump for December, citing insatiable demand for AI servers. This specific data point provided fresh fuel for the “risk-on” trade, effectively neutralizing safe-haven demand that typically accompanies regime-change operations.

FX Implications: The Dollar King

Foreign exchange markets reflected a similar indifference to geopolitical risk, focusing instead on yield differentials and growth disparity.

Investors are now betting that the AI productivity boom will insulate equity valuations from external political shocks, leaving the US Dollar as the default beneficiary of both high yields and US-centric global policy.