2026 Market View: Asia ex-Japan Equities

Dec 04, 2025

Derek Au, Portfolio Manager, RBC Asian Equity, summarises the market in 2025 for the asset class, and gives his thoughts for 2026.

  • China and Taiwan led regional gains, driven by tech/AI sectors and semiconductor demand. China benefited from policy support, while Taiwan and South Korea capitalized on their role in the AI supply chain.
  • India lagged due to weak macro conditions, geopolitical tensions, and weak consumer spending. However, long-term potential remains strong, backed by rapid GDP growth and favourable demographics.
  • Asia ex-Japan is expected to remain robust, China may see sector rotation post-tech rally, while Taiwan and South Korea will sustain gains from global chip demand. Valuations are slightly elevated but supported by earnings growth.
  • Despite concerns about an AI cycle peak, tier-1 AI enablers are likely to outperform due to limited supply growth and sustained pricing power.


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