Traders Looking for Next Leg in Global Stocks Rally Bet on Asia

As the focus moves away from the Iran war, investors and strategists alike are looking for the next leg up in equities. Many are turning to Asia.

Shares in South Korea and Taiwan have rallied the most in the world this month, with the surge in the Kospi index taking it up 78% for the year. The two markets have been key beneficiaries of the euphoria surrounding artificial intelligence, thanks to the growing dominance of giants Samsung Electronics Co., SK Hynix Inc. and Taiwan Semiconductor Manufacturing Co.

Equity-derivatives strategists are increasingly recommending trades to bet on more gains, just as ...