Asian stocks were on track for their best February on record as investors piled into the region’s companies supplying the artificial intelligence infrastructure build-out. The yen strengthened on inflation data.
The MSCI Asia Pacific Index has gained about 7% this month, making it the best February performance since the inception of the index in 1998.
The gauge — up 0.3% on Friday — is also poised to outperform the S&P 500 Index for a third consecutive month. Equity-index futures indicated Wall Street benchmarks were set to slip on Friday.
South Korea — a bellwether for AI investments — was the standout performer in Asia, with the Kospi Index gaining about 20% this month. It’s the world’s best-performing gauge this year after a 49% surge year-to-date.
“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.”
