Global banking and financial services company, Standard Chartered, has announced its preference for Asia ex-Japan equities, upgrading the region to an “overweight” position. The bank, which provides a range of investment strategies and market insights, highlighted strong earnings prospects, AI-driven investment, and easing oil supply concerns as key factors supporting its outlook for the region. This strategic shift was detailed at a recent briefing in Singapore.
Senior Investment Strategist Yap Fook Hien explained that Asia ex-Japan is projected to deliver the strongest earnings growth among major markets in 2026 and 2027, primarily supported by robust AI spending and the strength of chipmakers. Standard Chartered’s base case also anticipates shipping through the Strait of Hormuz to resume within weeks, which is expected to alleviate pressure on the oil-import-dependent region. Within Asia ex-Japan, the bank specifically favours Taiwan and China, followed by India. Taiwan’s leadership in chip manufacturing, China’s low valuations and innovation strength, and India’s domestically driven growth were cited as key reasons.
Globally, Chief Investment Officer Steve Brice confirmed the bank remains “overweight” on global equities, maintaining a preference for both U.S. and Asia ex-Japan markets. Standard Chartered also expressed favour for emerging market U.S. dollar bonds and gold. The institution projects the S&P 500 index to reach 7,950 and gold to hit $5,100 an ounce by mid-2027, reflecting its optimistic outlook across various asset classes.
