TechFlow daily message, July 21. In recent months, AI trading has continued to disrupt Asian stock markets, while the Australian market has shown strong resilience. The Australian S&P/ASX 200 index is expected to outperform the MSCI Asia Pacific index for the second consecutive month, setting the longest streak of consecutive outperformance since November 2024.

Australia’s limited exposure to chip manufacturers was once seen as a weakness during the rise of the AI market, but now it has become a source of market resilience. With semiconductor stocks in markets such as South Korea and Japan falling across the board, this feature helped Australia’s stock market withstand market shocks. This shift also highlights that, as market volatility increases, investors have become increasingly cautious about crowded AI trading and have started rotating capital to other markets. (Jin10)