Ray Sharma-Ong, Head of Multi-Asset Investment Solutions for South East Asia at abrdn, predicts that Asian markets will outperform, mainly due to their more attractive growth and valuation potential compared to the US. He points out that Asia tends to outperform during US Federal Reserve rate-cutting cycles. Sharma-Ong highlights specific markets such as India, China, Korea and Taiwan, and discusses the potential impact of the Indian elections and the forthcoming budget on the markets.

He is cautiously optimistic about China, due to signs of economic recovery, government intervention and good corporate results, while remaining attentive to developments in Sino-American relations. Sharma-Ong prefers to invest in Chinese equities listed in Hong Kong, which offer greater exposure to technology and artificial intelligence.

With regard to the Japanese yen, he anticipates a weakening US dollar and possible intervention by the Japanese authorities to stabilise their currency. He notes that Japanese equities are benefiting not only from the weak yen, but also from corporate reforms, which should continue to drive market growth in the long term.

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