Growth in the United States and some parts of Asia are expected to be supported by stimulus and AI-related spending in the first half of 2026. Markets still expect the US Federal Reserve to cut rates by 50 bps this year, but confidence in this magnitude and particularly timing has fallen. Meanwhile, Asia is close to the end of its easing cycle with only limited rate cuts from a handful of countries expected in 2026. Eastspring’s Multi-Asset Portfolio Solutions (MAPS) team continues to hold a broadly positive view on risk assets in the near term, as the economic data remains supportive for now. Asia and Emerging Market (EM) equities appear well positioned while EM debt offers attractive carry and should benefit from investor demand for higher-yielding hard currency debt.
Read | Eastspring’s Q1 2026 Outlook
