Even if the current AI boom falters, demand for digital infrastructure in Asia – especially in developing countries – will remain strong
Artificial intelligence (AI) is a transformative force in economies and financial markets. McKinsey estimates that data centres alone will need a staggering US$6.7 trillion in capital investment across the global data centre value chain in the next five years, and the scale of the investment suggests the world economy is in the early stages of a far-reaching shift that could lead to big gains in productivity.
In a report on June 24, Vanguard said the massive buildout of AI infrastructure “resembles historic periods of large-scale capital expansion, such as the railroad buildout in the 19th century and the late 1990s technology boom”. This could lay the foundation for a period of stronger growth, reshaping trade and capital flows and benefiting tech-driven economies.
to many industries. The technology could wreak havoc on the white-collar workforce. “Occupations with higher risk of being displaced by AI include computer programmers, accountants and auditors, legal and administrative assistants and customer service representatives,” Goldman Sachs said last year.
semiconductor-heavy marketis expected to account for 75 per cent of the earnings growth in Asia (excluding Japan) this year despite being the most volatile major equity market amid acute concentration in AI stocks.
retail traderscontinue to purchase shares aggressively, putting the Kospi on course to be the world’s best-performing index two years in a row.
Seoul’s overheated housing market. Flat prices have risen for 72 straight weeks despite tighter rules on mortgage lending.