Asian markets are catching some momentum following Wall Street's latest rally. The move comes as concerns around AI's economic impact have started cooling off, while investors recalibrate their expectations on interest rates.

It's a shift in sentiment that's hard to ignore. When the world's largest economy picks up steam, emerging and developed markets across Asia typically follow suit. The easing of those overhyped AI fears is letting some real market fundamentals shine through—and that's changing how traders are positioning themselves.

Rate expectations are playing their part too. Markets have been dancing around inflation data and central bank signals for months now. Any shift in what's priced into future rate decisions can ripple across all asset classes. Right now, the narrative seems to favor a slightly softer rate environment than what was feared earlier, and that's lifting risk appetite across the board.

When you combine lighter AI-fear headlines, a Wall Street push upward, and shifting rate bets, you get the environment we're seeing: a broad-based bid for Asia-focused assets. Whether this holds depends on what data hits next and how policy signals evolve.