Amundi: No Bubble in Asian Tech Stocks, but Fragility Persists

Amundi, Europe's largest asset manager, stated that AI-driven demand could continue to support the rally in Asian tech stocks. However, the firm warned that the rally could be at risk if US interest rates remain higher than expected. According to Amundi's assessment, the current rise in Asian tech stocks does not constitute a bubble, but the market exhibits a fragile structure. While strong demand in the AI sector positively impacts the performance of technology companies in the region, macroeconomic factors have the potential to reverse this momentum. In particular, the US Federal Reserve's monetary policy stance continues to be decisive for global risk appetite. Persistently high interest rates could lead to capital outflows from emerging markets and a decline in tech stocks. Amundi emphasizes that investors should be cautious in this fragile environment and notes that global interest rate conditions need to be closely monitored for the sustainability of the rally in Asian tech stocks. This is not investment advice.