Asian equities are heading for their strongest February on record as investors pour into companies supporting the region’s artificial intelligence (AI) infrastructure build-out. The Japanese yen strengthened following inflation data, further boosting market sentiment.
The MSCI Asia Pacific Index has risen about 7% so far this month, marking the best February performance since the index’s inception in 1998. Up 0.3% on Friday, the gauge is also poised to outperform the S&P 500 Index for a third consecutive month.
Equity-index futures signaled that Wall Street benchmarks were set to slip on Friday, highlighting the divergence between US and Asian markets.
South Korea, a bellwether for AI investments, emerged as the standout performer in Asia, with the Kospi Index gaining around 20% in February. The index has surged 49% year-to-date, making it the world’s best-performing gauge this year.
“Asian stocks have very much stolen the spotlight in 2026, particularly in contrast to the marginal gains by US benchmarks,” said Tim Waterer, a market analyst at KCM Trade. “We are seeing global capital continue to rotate toward the region’s tech stocks.”
The surge reflects mounting investor enthusiasm for AI-related companies across Asia, reinforcing the region’s growing influence on global equity markets.
