Standard Chartered Overweights Asia ex-Japan, Backs Taiwan and China on Growth
Standard Chartered's Investment Outlook for Asia ex-Japan
By Yantoultra Ngui
SINGAPORE, June 22 (Reuters) - Standard Chartered said on Monday it favours Asia ex-Japan equities, particularly Taiwan and China, as strong earnings prospects, AI-driven investment and easing oil-supply concerns support the region.
Key Takeaways from the Briefing
Here are a few takeaways:
Earnings Growth and AI Investment
• At a briefing in Singapore, senior investment strategist Yap Fook Hien said Asia ex-Japan is expected to deliver the strongest earnings growth among major markets in 2026 and 2027, supported by AI spending and chipmakers.
Oil Supply and Regional Impact
• Standard Chartered's base case also sees shipping through the Strait of Hormuz resuming within weeks, which could ease pressure on the oil-import-dependent region.
Equity Upgrades and Regional Preferences
• The bank upgraded Asia ex-Japan equities to "overweight."
Focus on Taiwan, China, and India
• Within the region, it preferred Taiwan and China, followed by India, highlighting Taiwan's leadership in chip manufacturing, China's low valuations and innovation strength, and India's domestically driven growth.
Global Investment Preferences
• Global Chief Investment Officer Steve Brice said the bank remained "overweight" on global equities, with a preference for U.S. and Asia ex-Japan markets, while also favouring emerging market U.S. dollar bonds and gold.
Market Projections
• Standard Chartered projects the S&P 500 to touch 7,950 and gold to hit $5,100 an ounce by mid-2027.
(Reporting by Yantoultra Ngui; Editing by Sherry Jacob-Phillips)
