Is Investing in Asia About More Than Just China?

We at E2E Financial are big proponents of a diversified investment portfolio which includes worldwide investing both by global (many times US based) companies and companies based outside the US. Today, we bring you great insight from our partners at JP Morgan and their Global Market Strategist: Gabriela Santos.

The opportunity set in Asia is large: Asia is home to over half of the global population, a third of global growth, a third of global exports, a quarter of global consumption, over a third of global savings – and five of the ten largest major equity markets.

2023 marked a third consecutive year of double-digit declines for Chinese equity markets. Investors are now reconsidering how to invest in that market and whether investing in Asia is about more than just China.

Over the past twenty years, other markets in Asia have delivered strong performance, such as: India, Korea, Taiwan – and more recently, Japan. There, markets have over-performed or kept up with U.S. markets, a fact overshadowed by the extreme U.S. concentration in global indices (a 63% weighting in the MSCI All Country World Index). As investors start to decrease their decade-long underweight in international stocks, Asia is a key place to look.

The region is at the epicenter of this decade’s biggest trends: artificial intelligence, automation, “friendshoring,” energy transition, and the growth of the emerging market middle class. Opportunities in China still exist, but investing in Asia is about much more than just one story. Read more here.

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