FT News Briefing AI bubble worries spread to Asia
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Nov 5, 2025 
Arjun Neil-Allam, the Asian financial correspondent for the Financial Times, sheds light on the growing fears of an AI bubble in Asian markets influenced by US trends. He discusses how a few AI stocks are propping up index gains and warns of potential ripple effects on Asian suppliers if US markets correct. Simon Foy, the European banking correspondent, reveals that UniCredit's ambitions to expand are stifled by political opposition in Germany and Italy, urging better stakeholder engagement for future M&A attempts.
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Narrow AI-Led Rally In Asia
- Asian market gains this year are very narrow and driven by a handful of AI-themed tech stocks.
- That concentration makes Asian indices vulnerable if US AI optimism corrects.
Asian Tech Tied To Global AI Demand
- Asian tech gains link directly to global AI demand and US tech buyers.
- Suppliers to US firms like NVIDIA and Apple will feel any US downturn in AI enthusiasm.
Valuation Gap Between Asia And US
- Asian valuations are generally lower than US indices despite the AI surge.
- Exceptions exist, such as high PE ratios for some Chinese chip makers like SMIC.