Fitch Ratings: Sector diversification in Southeast Asian stock indices may reduce risk of AI selling

Analysts from the rating agency Fitch Solutions' subsidiary BMI stated that compared to the United States, the diversification of sectors in the Southeast Asian market may make its stock market less susceptible to the selling wave driven by AI. They pointed out that the Southeast Asian stock indices have a higher weight on banks, industries, and hardware companies, while the US stock indices are concentrated in technology stocks. They said that given the widespread use of AI in the region, any downturn caused by AI could lead to position adjustments. They added that many companies in the region are relatively new in the application of AI, with lower reliance on advanced software issues, which means the direct risk of AI interference is much lower. They added that continued investment in AI infrastructure will help strengthen Southeast Asia's growth and support more stable risk and volatility conditions.