Asia Becomes Top Hunting Ground for Global Equity Bulls
Wall Street strategists report sizable portfolio flows rotating into Asian equities as US benchmarks trade at records. Investors are hunting value in Chinese and Korean technology names tied to artificial intelligence themes.
The balance in global equity markets is shifting toward Asia. Major Wall Street firms say they are tilting portfolio weights toward Asian markets while US indices trade at all-time highs. Strategists note that Chinese and South Korean technology stocks are changing hands at far more attractive valuation multiples than their American counterparts.
Asian companies tied to artificial intelligence, chip manufacturing and data-center supply chains are drawing the bulk of investor attention. Hong Kong's benchmark has rallied strongly since the start of the year, while Japan's Nikkei has hit record highs. India is also gaining traction thanks to robust domestic consumer demand.
At the same time, analysts warn that US markets are flashing cautionary signals at record levels. A Bank of America note says trend-follower funds are losing buying momentum. Many institutions are therefore raising allocations to Asia, betting that the next leg of global growth will come from the region rather than from American mega-caps.
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