Standard Chartered has upgraded Asia ex-Japan equities to "overweight," citing robust earnings prospects, sustained artificial intelligence (AI)-driven investment and expectations that oil supply disruptions in the Middle East will ease, Reuters reported from the bank's investment briefing in Singapore.
The bank expects Asia ex-Japan to deliver the strongest earnings growth among major global markets in 2026 and 2027, supported by continued AI-related spending and strength in the semiconductor sector.
Within the region, Standard Chartered favours Taiwan and China, followed by India. Taiwan is expected to benefit from its dominant position in advanced chip manufacturing, while China's appeal stems from attractive valuations and its growing innovation ecosystem. India continues to stand out due to its resilient, domestically driven economic growth.
The bank also expects shipping through the Strait of Hormuz to resume within weeks under its base-case scenario, reducing concerns over oil supplies and providing relief to Asia, which remains heavily dependent on energy imports.
On the global front, Standard Chartered maintained an "overweight" stance on equities, with a preference for U.S. and Asia ex-Japan markets. The bank also continues to favour emerging-market U.S. dollar-denominated bonds and gold as part of its investment strategy.
Looking ahead, Standard Chartered projects the S&P 500 index to reach 7,950 and gold prices to climb to $5,100 per ounce by the middle of 2027, reflecting its constructive long-term outlook for risk assets and safe-haven investments, Reuters reported.
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