AI economy, political stability and equity market-Stock rally in South Korea and Japan

2026/05/22

Marth 22th 2026
EIDE Briefings-simple data series
-US AI-driven economy benefits South Korea and Japan with political stability

The United States boasts the world’s largest AI ecosystem.

This ecosystem is underpinned by the US-aligned nations of Japan, South Korea (Samsung, SK Hynix) and Taiwan (TSMC).

Japan and South Korea, in particular, are strengthening their cooperation in the face of China.

With the rise in M7 share prices, South Korea and Japan—both of which enjoy a high degree of political stability—are set to benefit particularly.

AI diffusion by economy

https://www.koreatimes.co.kr/business/20260512/korea-leads-surge-in-global-ai-adoption-as-asia-becomes-new-tech-engine

M7-driven US Stock market

https://www.hardingloevner.com/insights/the-magnificent-seven-skew-market-returns-style-factors/

HBM market share as of Q3 2025

https://www.trendforce.com/research/download/RP250725BM

Surge in stock prices in South Korea and Japan

https://koreajoongangdaily.joins.com/news/2026-03-30/business/finance/Korean-currency-markets-increasingly-mirror-Japan-as-they-drift-from-China-US/2556733

Approval ratings of leaders by countryーSouth Korea and Japan enjoy the highest political stability, Europe lags behind

https://www.statista.com/statistics/1456852/world-leader-approval-ratings/?srsltid=AfmBOooo6iHoniZjAP-Ebs0LF_7GlK_rkEHXrXL7x9-jIdxjEuLvbi5Z

European countries are exposed to security risks from Russia and suffer from a lack of political stability.
The ‘Brussels Effect’ is also at play, meaning that the market is currently unattractive.

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