Aug 29 Reuters A key Asia stock index has gained its biggest lift in earnings projections in more than three years, as the region39;s semiconductor firms benefit from the boom in generative artificial intelligence.

Also helped by robust secondquarter results across a wide range of industries, the average of 12month earnings per share forecasts for companies in the MSCI Asia Pacific index climbed 3.9 over the past month, according to LSEG IBES data that collates analysts39; estimates.

It was a particularly sharp jump after downward revisions and smaller increases for the first seven months of this year.

Projections for South Korean firms surged 8 while those for Taiwanese and Japanese companies rose 5.

Samsung Electronics, for example, forecast strong AIdriven demand for chips this year after logging a more than 15fold rise in secondquarter operating profit. Taiwan39;s TSMC, the world39;s largest contract chipmaker, has raised its fullyear revenue forecast.

The upgrades in Asian companies39; earnings expectations are mainly due to upgrades in South Korea and Taiwan on the back of improving semiconductor earnings, said Minyue Liu, an equity investment specialist at BNP Paribas Asset Management.

The data also showed forward 12month EPS forecasts for Chinese firms have been lifted 1.5 in the past month.

Many investors are choosing to ignore China even though some companies39; earnings have beaten market expectations, said Elizabeth Soon, head of Asia exJapan…