AI trading in Asia is facing a test, HSBC strategists wrote in a report. They wrote that Korea is still the strongest growth story in Asia, but leveraged investment and concentrated positions are likely to keep volatility high. HSBC upgraded the rating of Indian stocks from reduced holdings to neutral because lower energy prices and consumer resilience reduced profit risks. They added that a key concern is whether the recent rebound in foreign capital inflows will continue as attention reverses to AI-related opportunities.

AI trading in Asia is facing a test, HSBC strategists wrote in a report. They wrote that Korea is still the strongest growth story in Asia, but leveraged investment and concentrated positions are likely to keep volatility high. HSBC upgraded the rating of Indian stocks from reduced holdings to neutral because lower energy prices and consumer resilience reduced profit risks. They added that a key concern is whether the recent rebound in foreign capital inflows will continue as attention reverses to AI-related opportunities.