Asia will continue to show resilience in the face of evolving global trade dynamics, given several tailwinds supporting the region’s growth prospects, according to Andrew Swan, portfolio manager at Man Group.
While the US tariffs remain a key concern, China’s economic shift, a weakening US dollar, growth of the tech sector and monetary policy changes are supporting this region’s growth outlook, Swan said.
“China’s transition of its economic model from an investment-driven growth model to a more consumption-driven economy is a critical factor in its growth outlook.
“The Chinese government is focusing on improving social safety nets, which is expected to unlock significant household savings and stimulate domestic consumption. This is not just a short-term stimulus measure by the Chinese government, but rather a long-term shift in how China wants to grow,” Swan said.
Beyond China, other markets in Asia, such as Indonesia and the Philippines, are also presenting promising opportunities, which Swan said is being supported by the rate-cutting cycle by the Federal Reserve (Fed) and a weakening US dollar.
“A well-diversified portfolio is better positioned to preserve capital and deliver more resilient, consistent returns throughout the economic cycle,” he added.
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