AI-driven trading has disrupted Asian equities in recent months, while Australia has shown relative resilience. The S&P/ASX 200 is set to outperform the MSCI Asia Pacific index for a second consecutive month, the longest streak since November 2024. Australia's limited exposure to chipmakers—once a drag during the AI rally—has insulated it as semiconductor stocks fall in Korea and Japan. The move highlights rising investor caution toward crowded AI trades and a rotation of flows into other market

AI-driven trading has disrupted Asian equities in recent months, while Australia has shown relative resilience. The S&P/ASX 200 is set to outperform the MSCI Asia Pacific index for a second consecutive month, the longest streak since November 2024. Australia's limited exposure to chipmakers—once a drag during the AI rally—has insulated it as semiconductor stocks fall in Korea and Japan. The move highlights rising investor caution toward crowded AI trades and a rotation of flows into other markets.