Newsletter
If 2026 has proved anything, it's that there is no such thing as a 'global stock market.'
Every major index has been telling a completely different story. South Korea's KOSPI has been the standout performer this year, while Japan's Nikkei has continued its strong run.
The Nasdaq has benefited from the AI boom, Germany and the UK have posted steady gains, China has struggled with slowing growth, and India has spent much of the year consolidating after two exceptional years.
So, why has one world produced so many different outcomes? The biggest driver has been artificial intelligence.
Countries with large semiconductor and technology companies have attracted enormous investor interest.
South Korea's rally has been powered by chipmakers like Samsung Electronics and SK Hynix, whose earnings have surged as demand for AI infrastructure continues to explode. Government support for AI investments has only added to investor confidence.
Japan's story has been very different. Instead of AI, it has been corporate reforms that have grabbed investors' attention. Companies have improved shareholder returns through buybacks and better governance, while foreign investors have poured money back into Japanese equities after years of staying away.
The United States has continued to ride the AI wave as well. Technology giants remain at the centre of the AI revolution, helping the Nasdaq outperform despite periodic concerns around interest rates and AI spending.
Not every market has enjoyed the same momentum. China's recovery has remained uneven as weak domestic demand and ongoing property sector concerns continue to weigh on investor sentiment.
India, meanwhile, hasn't seen a collapse, it has simply paused after a remarkable run in 2024 and 2025. With valuations becoming relatively expensive, many global investors shifted some capital towards markets that offered cheaper valuations and faster earnings growth.
But the picture is already beginning to change. Foreign investors have started returning to Indian equities in recent weeks as oil prices eased, the rupee stabilised and the earnings season got underway. The coming quarters will now depend on whether corporate earnings can justify India's premium valuations once again.
The biggest takeaway from 2026 is that stock markets don't always move in line with economic growth. They follow earnings, innovation, valuations and where global capital chooses to flow.
This year, AI turned South Korea into the biggest winner, reforms kept Japan in favour, Big Tech lifted the US, while other markets waited for their next catalyst.
And that's exactly what has made 2026 such a fascinating year for global investors.
