Standard Chartered has upgraded its stance on Asia ex-Japan equities to 'overweight,' citing strong earnings prospects, AI-driven investment, and easing oil-supply concerns. The bank particularly favors Taiwan and China within the region.
The bank's strategic shift to 'overweight' on Asia ex-Japan equities, particularly favoring Taiwan and China, signals potential investment opportunities driven by AI and earnings growth in the region. This outlook could influence investor flows and market performance in these key Asian markets.
Standard Chartered has upgraded its recommendation for Asia ex-Japan equities to 'overweight,' citing strong earnings prospects, AI-driven investment, and easing oil-supply concerns as key supportive factors for the region. The bank specifically favors Taiwan and China within Asia ex-Japan, followed by India.
At a briefing in Singapore, senior investment strategist Yap Fook Hien stated that Asia ex-Japan is anticipated to deliver the strongest earnings growth among major markets in 2026 and 2027, driven by AI spending and chipmakers. The bank's base case also includes the resumption of shipping through the Strait of Hormuz within weeks, which could alleviate pressure on oil-import-dependent nations.
Global Chief Investment Officer Steve Brice confirmed the bank's 'overweight' stance on global equities, with a preference for U.S. and Asia ex-Japan markets. Standard Chartered also favors emerging market U.S. dollar bonds and gold. The bank projects the S&P 500 to reach 7,950 and gold to hit $5,100 an ounce by mid-2027.
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