As a notable highlight of our 20th anniversary, EquitiesFirst enlisted Institutional Investor Custom Research Lab (“II Research”) to co-produce a landmark Global Equity Markets Research, along with regional insights into the expectations and strategies of global investors focused on the markets of Asia Pacific, Europe and North America amidst heightened macroeconomic and geopolitical uncertainty.
The Asia Pacific report compiles insights gleaned from CIOs, portfolio managers, and other investment decision-makers focused on the region’s developed markets – namely, Australia, Hong Kong, Japan, New Zealand, and Singapore – as well as the emerging ones, including China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan, and Thailand.
is anticipated by investors focused on Asia Pacific, but at a significantly lower percentage compared to other markets
are seen by investors focused on Asia Pacific to have a major impact on equity markets over the next 18 months
are supported by investors with an Asia Pacific focus over the next two years at the expense of value or index-based passive strategies
Despite the challenges of high inflation and interest rates, along with heightened geopolitical tensions, all the regional reports reveal a general sense of optimism about equity markets, with the technology and healthcare sectors believed to offer the strongest prospects.
Where Asia Pacific stands out is in its lower expected market volatility in relation to North America and Europe. Therefore, while mean return expectations for this year hover at around 6% in all three regions, investors focused on Asia Pacific are anticipating a smoother ride.
The region also benefits from stronger GDP growth prospects than in the West over the coming years. As such, it is no surprise that Asia Pacific-focused investors show a strong preference for growth strategies.
Investors interviewed for the study expressed optimism that Asia Pacific is in store for a period of sustained economic growth, along with the emergence of new high-growth companies and market-expanding innovations from established ones.
AUSTRALIA EQUITY MARKETS
Insights provided by the subset of Asia Pacific-focused investors located in Australia are highlighted separately in the Australia report.
Australia’s macroeconomic climate is notably different from North America and Western Europe, as a majority of investors (64%) identify trade relations and tariffs as weighing most heavily on the region’s equity performance.
Australia-focused investors stood out from the pack with their concerns about commodity costs and availability; 30% ranked it as their biggest macroeconomic worry.
Fully 67% survey respondents from Australia prefer hybrid active/passive strategy over the next two years, which are suitable in the developed Australian market due to its efficiency and trading volume.