Investing In Asia Pacific

This report assesses the impact of AI-driven earnings growth and regional geopolitical stabilization on Asian markets. It maintains a constructive view on regional equities and credit while recommending diversification.

Key Takeaways

• 1.AI remains the primary driver of regional earnings, with significant capital expenditure expected through 2027.
• 2.The firm sees limited upside for Fed rate hikes, maintaining an attractive view on Asia credit despite near-term currency volatility.
• 3.A US-Iran peace deal is expected to help stabilize oil prices and broaden regional performance beyond AI-focused sectors.

Table of Contents

• Return on (A)I?
• Further upside
• High bar for hikes
• Deal or no deal
• Q1. Asian equities are enjoying one of the best stretches of performance since the mid-2000s. Will the drivers of the rally remain intact through 2H?
• 2. The Fed could become more hawkish. What does this imply for Asia currencies and credit?
• 3. Geopolitical risks are here to stay. How should investors navigate the associated volatility?
• Asset allocation
• Messages in focus
• UBS APAC forecasts
• Appendix
• Risk Information

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