Standard Chartered 'overweights' Asia ex-Japan; favours Taiwan, China on AI, earnings

Standard Chartered (2888) said on Monday it favours Asia ex-Japan equities, particularly Taiwan and China, as strong earnings prospects, AI-driven investment and easing oil-supply concerns support the region.

Here are a few takeaways:

• At a briefing in Singapore, senior investment strategist Yap Fook Hien said Asia ex-Japan is expected to deliver the strongest earnings growth among major markets in 2026 and 2027, supported by AI spending and chipmakers.
• Standard Chartered's base case also sees shipping through the Strait of Hormuz resuming within weeks, which could ease pressure on the oil-import-dependent region.
• The bank upgraded Asia ex-Japan equities to "overweight."
• Within the region, it preferred Taiwan and China, followed by India, highlighting Taiwan's leadership in chip manufacturing, China's low valuations and innovation strength, and India's domestically driven growth.
• Global Chief Investment Officer Steve Brice said the bank remained "overweight" on global equities, with a preference for US and Asia ex-Japan markets, while also favouring emerging market US dollar bonds and gold.
• Standard Chartered projects the S&P 500 to touch 7,950 and gold to hit US$5,100 an ounce by mid-2027.

Reuters

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