While developed markets continue to climb led by the US, Asian equities have been largely overlooked by investors. However, Andrew Swan, head of Asia equities (ex-Japan) at Man Group, sees a turning point with several tailwinds suggesting a potential resurgence in earnings and share price growth across the region.
There are several key factors driving this positive outlook. Anticipated interest rate cuts by Asian central banks, following the US Federal Reserve, are expected to invigorate equity markets. Additionally, fiscal reform and a focus on stimulating domestic consumption in China point to a positive shift in the world’s second-largest economy. Furthermore, the forthcoming infrastructure and devices cycle, fuelled by AI advancements, is likely to disproportionately benefit Asia’s hardware manufacturers.
“While Asian equities have been undervalued for an extended period, the combination of these factors can create compelling opportunity for investors. We believe the region’s inherent resilience, coupled with anticipated policy changes and technological advancements, paints a promising picture for the future,” said Mr Swan.
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