Manulife Investment Management on Wednesday highlighted the prevailing uncertainty in Asia’s equity markets as 2025 begins, driven by a mix of geopolitical tensions, leadership transitions, and shifting fiscal and interest rate environments. The company said such volatility requires investors to be particularly discerning in stock selection and to focus on diversification across the region.
Kenglin Tan, senior portfolio manager for equities at Manulife, noted that ASEAN governments are implementing policies to foster economic growth and attract foreign direct investments (FDI). He pointed to sectors such as banking, healthcare, and consumer staples as prime beneficiaries of this focus. Tan also emphasized opportunities in thematic investments, with artificial intelligence (AI), technology, and advanced manufacturing expected to drive growth across key Asian markets, including South Korea, Taiwan, and the broader ASEAN region.
Despite global inflationary pressures moderating, Manulife cautioned that inflation remains uneven, particularly with persistent core inflation in developed markets and supply chain disruptions affecting emerging economies. Luke Browne, senior portfolio manager and head of asset allocation for Asia, noted that 2025 is shaping up to be an exciting year for investments, as central banks globally move toward easing monetary policies. Over half of the world’s central banks have already initiated rate cuts, presenting fresh opportunities for both developed and emerging markets.
Browne also highlighted the ongoing shifts in global trade patterns due to deglobalization and “friendshoring,” creating new investment avenues in regional leaders and sectors like AI and clean energy. These macroeconomic changes are expected to significantly impact investment strategies across Asia.
