Standard Chartered announced Monday that it is bullish on stocks across Asia excluding Japan, with Taiwan and China standing out as top picks, as the region benefits from robust earnings outlooks, growing AI-related investment, and easing concerns about oil supplies.
Speaking at a briefing held in Singapore, senior investment strategist Yap Fook Hien said that Asia ex-Japan markets are on track to post the strongest earnings growth among all major global markets in both 2026 and 2027. He credited that momentum to increased spending on artificial intelligence and the critical role chipmakers play in that ecosystem.
The bank formally upgraded its rating on Asia ex-Japan equities to “overweight,” signaling a stronger vote of confidence in the region’s market performance.
Among the specific markets highlighted, Taiwan ranked at the top due to its dominant position in chip manufacturing. China was favored for its relatively low stock valuations and demonstrated strength in innovation. India also made the preferred list, with analysts pointing to the country’s internally driven economic expansion as a key advantage.
Standard Chartered’s base-case outlook also anticipates that shipping traffic through the Strait of Hormuz will resume within a matter of weeks. That development, if it materializes, would relieve pressure on countries in the region that rely heavily on oil imports.
Global Chief Investment Officer Steve Brice noted that the bank continues to hold an “overweight” stance on global equities overall, with a particular preference for U.S. markets and Asia ex-Japan. Brice added that the bank also favors emerging market bonds denominated in U.S. dollars, as well as gold.
Looking further ahead, Standard Chartered projects the S&P 500 index will climb to 7,950 and that gold prices will reach $5,100 per ounce by the middle of 2027.
