AI panic trading cools down, Asian chip stocks hit record highs, gold and silver retreat, London copper rises 2%, Bitcoin plunges

```

Signs of easing have emerged in the "panic trading" around artificial intelligence, with Asian stock markets and US stock futures rising on Tuesday as investor risk appetite improves. Shares of Asian chip manufacturers such as Samsung Electronics, SK Hynix, and TSMC soared to record highs, with traders viewing these companies as the "minting tools" of the AI supply chain, while US software, insurance, and professional services stocks remain under pressure.

Asian stock markets climbed modestly, reversing the weak trend in US markets, and S&P 500 index futures rose 0.3%. Korea's stock market jumped 2%, pushing the MSCI Asia-Pacific index to erase early losses, closing up 0.1%. European stock markets are also set for a strong opening.

As risk sentiment warmed, gold and silver retreated after four consecutive days of gains. US bond yields gave back gains from the American session, and Bitcoin posted its worst monthly performance since the cryptocurrency crash in June 2022, falling to near $63,000. The US Dollar Spot Index rose 0.1%.

This market divergence highlights the different fates of Asian and US tech stocks. The MSCI Asia regional index is up 12% so far in 2026, while the S&P 500 index is nearly flat, marking the strongest relative start-of-year performance for the Asian index versus the US benchmark. Investors are betting that Asian chip manufacturers will benefit from AI infrastructure build-out, while US enterprise services, software, and financial intermediaries face risks of AI disruption.

Korea's stock market up 2%, Nikkei 225 intraday gains expanded to 1%.S&P 500 futures up 0.3%.US Dollar Spot Index up 0.1%.Yen down 0.4%, to 155.27 dollars.US 10-year Treasury yield up 1 basis point, to 4.04%.Spot gold down 0.8% to $5189.99 per ounce, ending four days of gains, after rising 2.5% the previous day.Copper prices up 2.3% to about $13,200 per ton, aluminum also up.Oil prices near seven-month highs. Brent crude futures up 0.8% to $72.08 per barrel, US crude futures up 0.9% to $66.88 per barrel.Bitcoin dropped up to 2.64% intraday, to $62,858. February cumulative losses exceeded 19%, on track for its worst month since June 2022.

Divergence between Asian and US markets emerges

Christopher Forbes, head of CMC Markets Asia, said: "The AI panic trading sweeping the US market is a substitution story. Generative AI is repricing revenue models for enterprise software, professional services, and wealth management platforms. Asian indexes have almost no exposure to this. Decoupling has already begun."

Carmen Lee, head of equity research at OCBC, said this trend may persist for some time. Mohit Mirpuri, senior partner at SGMC Capital, commented: "In the first two months of this year, we saw more targeted allocation to Asia and emerging markets. This doesn’t necessarily imply structural decoupling, but it does show that global portfolios are broadening exposure beyond the narrow US tech-centric trade."

The robust performance in Asian markets sharply contrasts with the US. On Monday, US tech, courier, and payment stocks declined, after Citrini Research released a report outlining the potential risks of AI to various industries. Ongoing uncertainty around President Trump’s tariff policies exacerbated market weakness.

Bloomberg strategist Mark Cranfield noted that Asian investors continue to believe that companies serving as the "minting tools" for the AI race will reap rewards, with the Bloomberg Semiconductor Index significantly outperforming. The momentum of top regional companies is so strong that even if Nvidia’s earnings call this week is very disappointing, it would hardly dampen the rally.

Chip manufacturers are seen as the core beneficiaries of AI infrastructure construction. Investors believe that, regardless of how AI reshapes business models, demand for advanced chips will continue to rise, providing solid profit prospects for companies such as TSMC, Samsung, and SK Hynix.

AI disruption concerns hit US intermediary businesses

Alap Shah, a co-author of the Citrini Research report, said in a Bloomberg TV interview that chip manufacturers, data centers, and basic model labs are the key beneficiaries of AI trading. Insurance companies and banks, i.e., intermediary businesses, are the ones facing risk. Shah said his company is shorting some of the firms mentioned in the report, while holding "large" positions in semiconductor stocks likely to benefit.

"We typically short a group of companies we think will be disrupted by AI," he said Tuesday during the Asian session. "On the other hand, we hold large positions in semiconductor stocks we believe will benefit."

This so-called AI panic trading has become a dominant market theme, with the selloff spreading from software to US insurance brokers, private credit companies, cybersecurity firms, and even real estate services stocks. IBM plunged on Monday, marking its biggest drop in 25 years. The software stock ETF is on track for its worst month since 2008.

Commodity and currency market divergence

The commodities market is showing divergence patterns. Spot gold fell 0.8% to $5170.99 per ounce, ending four days of gains, after jumping 2.5% the previous day. Ilya Spivak, head of global macro at Tastylive, attributed gold’s decline to a stronger dollar and profit-taking by investors. Copper prices rose 2.3% in London to about $13,200 per ton, and aluminum also gained.

Oil prices are near seven-month highs. Brent crude futures rose 0.8% to $72.08 per barrel, US crude futures climbed 0.9% to $66.88 per barrel. Priyanka Sachdeva, senior market analyst at Phillip Nova, said, "At present, geopolitics is clearly the main driver of oil prices, with the current strength primarily driven by expectations rather than actual supply loss."

Federal Reserve Governor Christopher Waller said if upcoming February employment data shows the labor market shifting to a "firmer footing" after a sluggish 2025, he is willing to keep rates unchanged at the March meeting.

Risk Disclosure and DisclaimerThe market contains risks and investments need to be approached cautiously. This article does not constitute personal investment advice, nor does it take into account users' individual investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their specific circumstances. Investments based on this are at your own risk. ```