Can Asia’s earnings strength weather the turbulence?
We are pleased to present A Guide to Investing in Asia for 3Q26. This thematic publication is designed to help investors navigate the region’s evolving opportunities and risks as strong corporate fundamentals contend with tighter global monetary policy, renewed equity volatility and persistent geopolitical uncertainty.
Asia Pacific emerging market equities continue to draw investors’ attention, supported by 72% year over year earnings growth and 27% year-to-date returns. The long-term AI opportunity also remains intact, with Asia siting at the center of the global semiconductor and technology supply chain. However, recurring AI-related equity “tantrums” have underscored the volatility that can accompany elevated expectations and heavy market concentration.
At the same time, interest rates are rising across major central banks, challenging valuations and raising questions about the durability of economic growth. The continuing conflict in the Middle East is adding another layer of uncertainty, keeping energy prices and inflation risks in focus, particularly for Asia’s energy-importing economies.
This quarter’s slide selection brings these themes to life through an updated look at Asia Pacific equities and the forces shaping regional market leadership, with a deeper dive into China, India and Japan.
