00:00S&P futures on your screens. We're still tracking, of course, the developments as it pertains to the NVIDIA story
00:04and it's interesting given the backdrop of the AI scare trade that's been dominant across these markets. Joining us here
00:12on set to talk us through all these things is Marcella Chow, global market strategist at JPMorgan Asset Management here
00:19with us on set. Very nice to see you.
00:21Same here. Happy Chinese New Year.
00:22Happy Chinese New Year to you too. How are you looking at this AI scare trade?
00:27Right now, yes, ongoing like AI disruption concerns have actually triggered like this notable shift because we see a new
00:34page of like AI story or leaders have actually emerged.
00:39It's not defined more, no longer by just the mega cap or the ones infesting into AI, but those that
00:46may actually be reshaped or other sectors that are reshaped by AI.
00:50So we see actually broadening out that we have always been talking about is happening actually beyond and within USAI
00:58and across to not just enablers, not just like the innovators, but into like enablers and for example, industrials, utilities,
01:06materials sector, and also the adopters in like financials and healthcare.
01:09So it's broadening out beyond just the tech sector. And this AI is no longer just a tech narrative. It's
01:16a cross sector, cross asset market story now.
01:19And indeed overnight, we saw the earnings. It was better, like better than expected. But then the AI anxieties continue
01:28to actually penalize the ones with like chaotic surprises over the ones with like good revenue surprises.
01:35But one key thing that Yvonne highlighted is that we see that the computing demand remains quite strong and that's
01:41actually a good thing for Asia, especially Asia AI and the hard tech because we see that computing demand remains
01:48strong.
01:49And so the infrastructure build out, which actually needs a lot of as long as data center remains to be
01:54built and constructed semiconductors, power, energy, networking, they will still be in huge demand.
02:02And so that will benefit like Korea and Taiwan, those hardware and hard tech providers that have actually been outperforming
02:09the US.
02:10What about when it comes to China AI?
02:12China AI is another good story as well that we remain constructive on China because of like AI adoption and
02:19also across different sectors, not just agentic AI, but into like physical AI as well, like robotics and then also
02:27like semiconductors as well.
02:28And we recently saw innovation like fintech and also into biotech.
02:34So those will also benefit within China and especially with like the self-sufficiency that suggests that and also policy
02:41support definitely.
02:42So that will suggest we will need to continue to see the policy support from the MPC, whether they will
02:48be leaning towards rebalancing and whether they'll be prompting for like higher quality growth and a focus on tech.
02:55Well, we will never go ahead and see the facts that I'm going to go ahead.
02:55Okay.
02:56Bye.
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