A capex supercycle beyond just AI anchors Asia's growth outlook: Economist

• Asia's capex supercycle is anchored by factors beyond AI, including substantial energy transition investments.
• AI and semiconductor capex in Asia are estimated at $380 billion this year, while energy capex alone is $900 billion.
• A potential slowdown in AI capex is not seen as a major issue for the region, given the broad-based nature of the capex growth and other strong drivers like energy security and transition.

Morgan Stanley's Chief Asia Economist, Chetan Ahya, discusses Asia's growth outlook, highlighting a capex supercycle driven by factors beyond just AI. While AI and semiconductor capex are significant, energy transition and other non-AI related investments are providing a broader and more resilient foundation for the region's economic expansion.