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Investment Outlook Q3 2025: Tap into Asia’s domestic resilience and structural growth

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Tap into Asia’s domestic resilience and structural growth

May 22, 2025

The recent faster than expected 90-day US-China tariff reprieve has helped restore risk sentiment across Asian markets, supporting our mild overweight on EM Asia equities. We continue to overweight Chinese, Indian, and Singaporean equity markets backed by domestic demand and policy stimulus to harness Asia’s structural growth and domestic resilience.

The ‘China’s Innovation Champions’ theme targets long-term opportunities from the China’s accelerating AI adoption, led by DeepSeek’s open-source advancements. We favour national champions across the AI value chain from semiconductors, software to infrastructure, AI cloud & agents and physical AI.

Through our new theme, ‘Asia’s Enduring Titans,’ we focus on industry leaders with proven business models and financial strength across technology, financials, and consumer sectors.

The ‘Power Up Asian Shareholder Returns’ theme identifies quality companies which enhance ROE by paying high dividends, increasing share buybacks and driving M&A.

Lastly, our ‘High Quality Asian Credit’ theme is backed by the disinflation trend, solid credit fundamentals, monetary easing by Asian central banks that are supportive drivers for Asian USD IG bonds. 

Investment Outlook Q3 2025: Tap into Asia’s domestic resilience and structural growth Watch the video: Investment Outlook Q3 2025: Tap into Asia’s domestic resilience and structural growth
Discover our latest in-depth investment views and insights in our video with Cheuk Wan Fan, Asia Chief Investment Officer.

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