Asia’s structural tailwinds come into sharper view

Asia-Pacific equities have outperformed the US and Europe in 2026, driven by attractive valuations, improving economic momentum, and supply chain shifts. The region benefits from its central role in AI infrastructure, particularly in Japan, Korea, and Taiwan, which supply key components. Valuations remain discounted versus the US, offering both earnings growth and re-rating potential alongside stronger dividends and governance reforms. Diverse structural drivers across India and Southeast Asia—including demographics, urbanisation, and rising consumption—add to the opportunity set. While geopolitical...