Why Asia stands out for equity investors

Asia offers abundant growth opportunities for equity investors, presenting numerous attractive prospects across its diverse markets.

- Pruksa lamthongthong

Today, the region accounts for over 60% of global growth and is home to some of the world’s largest and most innovative companies. Asia continues to grow robustly as reflected by its domestic capital formation, with the region expected to accelerate even further over the next decade, driven by stronger domestic economies, rising urbanisation, and a resurgence in investment fuelled by shifts in global supply chains.

As manufacturers increasingly move operations away from China amid tariff concerns, ASEAN stands to benefit from expanding tech supply chains and industrial investments. Countries like Indonesia are emerging as important hubs, supporting electric vehicle production and semiconductor manufacturing.

New opportunities are also on the horizon as market dislocations create fresh openings, while key trends, such as demographics, urbanisation, technological and industrial leadership, and diversification continue to gain momentum. Asia’s younger demographics and expanding middle classes are primed for strong consumption-driven growth, fuelling demand across a diverse range of industries such as, but not limited to, retail, financial services, and real estate.

Meanwhile, the region’s technological and industrial leadership, particularly in powerhouse economies like China, South Korea and Taiwan, continues to pioneer innovation in advanced technologies — artificial intelligence, semiconductors, and electric vehicles — solidifying its place at the forefront of global advancements.

Trump's tariffs, currencies

A common perception is that Asian economies are reliant on the US consumer to fund their export led models, and tariffs will negatively impact exporters. Of course, several Asian countries have export led growth models, but the growth of Asia's middle class creates powerful domestic opportunities in other areas.