Emerging Markets Continue Rally: AI Boom Overshadows Iran Concerns

NVDA shares fell 3.3% in the last 24 hours, closing at $215.25. While the RSI at 36.5 approaches oversold territory, the MACD line remains below the signal line and in negative territory. The price is trading below both the 20-day ($220) and 50-day ($223.7) moving averages. Although news headlines mention an AI rally, this broader market optimism may not immediately reverse NVDA's technical weakness. The short-term downtrend is likely to persist.

TSM is experiencing a positive news flow driven by the AI rally. Technical indicators show the price trading above the 20- and 50-day moving averages, with the RSI in neutral territory. Although the MACD line is below the signal line, it remains in positive territory, suggesting short-term upward potential. However, geopolitical risks such as Iran concerns and the MACD being below the signal line indicate that the upside may be limited. Therefore, a slight short-term rise is expected.

ARM shares have recorded an extraordinary 36.8% rise in the last 24 hours, pushing the RSI to 79.5, firmly in overbought territory. While headlines suggest the AI rally continues, such a rapid surge increases the likelihood of short-term profit-taking or consolidation. Although the MACD remains bullish, overbought conditions and the price trading well above moving averages warrant caution. Therefore, it is difficult to give a clear signal for short-term direction, and the market may be expected to trade sideways for a while.

KOSPI recorded a strong 13.7% gain in its last close, with the RSI at 69.7 approaching but not yet signaling overbought conditions. The MACD line remains above the signal line and in positive territory, indicating continued upward momentum. The price is trading well above the 20- and 50-day moving averages, confirming a strong short-term trend. News headlines highlight that AI-driven optimism in emerging markets is outweighing geopolitical concerns, serving as a positive catalyst for tech-heavy indices like KOSPI. However, the extreme rally over the past 24 hours and elevated RSI levels increase the risk of short-term profit-taking or consolidation, tempering the bullish outlook with cautious optimism.