Investors in the Asia Pacific are reassessing their US portfolio allocations, according to BlackRock, following market volatility partly driven by concerns over US trade policy and the fiscal deficit.
Elaine Wu, head of Asia Pacific Investment and Portfolio Solutions at BlackRock, said a recent client survey of more than 20 percent of international investors indicated that they are actively exploring ways to reduce US-linked holdings.
That sentiment appears to be reflected in exchange-traded fund flow data: June 2025 marked the first time since May 2023 that there was net selling of APAC-listed US equity ETFs, according to Wu.
For comparison, between April and June, investors poured US$19 billion (HK$148.2 billion) into China equity ETFs and US$5 billion into Hong Kong ETFs, signaling growing confidence in regional markets, she said.
Separately, Wu noted that while the greenback remains the world’s dominant currency and US equities and fixed income continue to form a core part of global portfolios, investors are being advised to diversify assets.
Moreover, Wu said digital assets including stablecoins are drawing increasing interest from investors, supported by strong momentum in ETF flows tied to the sector.
She said digital assets fit within BlackRock's broader portfolio diversification framework due to their trading behavior.
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