Investment perspectives for the Asian market in the latter half of 2026 have been released. The report indicates that the global investment landscape is undergoing significant changes due to persistent geopolitical conflicts, shifts in central bank policies, and the convergence of structural opportunities in Asian equity and bond markets.
According to a senior global macro strategist at Manulife Investment Management, market expectations initially leaned towards synchronized monetary policy easing. However, persistently rising energy prices have intensified inflationary pressures, compelling central banks in several regions to maintain a relatively hawkish policy stance to guard against second-round inflation effects.
Nevertheless, global economic cycles are not uniform. Economies with stronger energy self-sufficiency, or those benefiting from the technology super-cycle, are demonstrating comparatively greater resilience.
Focusing specifically on the Chinese market, the strategist noted that mainland China has effectively mitigated the impact of global oil price shocks on its domestic economy through diversified energy imports, price control measures, and ample inventories. Supported by steady underlying growth, policymakers retain flexibility to adapt to changes in the external environment.
Positive Outlook for Asian Equities
Looking ahead to the second half of the year, the outlook for Asian equity markets is generally positive, benefiting from improved earnings visibility, a shift towards a more accommodative financial environment, and diversified growth drivers within the region.
The head of Asian equity investments at Manulife Investment Management stated that the earnings prospects for the mainland Chinese market over the next 12 to 18 months are expected to continue recovering, moving away from the previous period of weakness. As the economic recovery broadens and the industrial cycle stabilizes, investment opportunities are emerging in sectors such as artificial intelligence, semiconductors, advanced manufacturing, and power equipment.
Supported by policy and with valuations remaining attractive, Chinese equities present a more constructive investment outlook over the medium term.
ASEAN Market Recovery
Regarding ASEAN markets, the investment head acknowledged potential short-term volatility but suggested that strengthened policy coordination and a gradual recovery in domestic demand could foster a more sustainable recovery.
Overall, Asian equities offer global investors a source of differentiated growth and value for risk diversification. However, it is important to note that market internal divergence remains pronounced, further elevating the importance of active management and prudent stock selection.