And of course, Asia-Pacific equities continue to trade at a discount to US markets. A partial reversal of foreign fund flows, which have favoured the US for the past decade, could boost Asia significantly, given its smaller relative market size. India stands out for long-term structural growth, propelled by a growing middle class, favourable demographics, and rising per capita income. Crabb describes India as “a great story” with growth potential and market tailwinds.
Robeco’s mid-year market outlook for 2025 shows a marked shift in global positioning, with reduced exposure to US equities and a greater focus on emerging markets and Asia.
Thanks to relative valuations, evolving fundamentals and a weaker dollar, Asia is becoming more interesting. “Irrespective of what the market does, there are places to generate alpha within Asia,” says Joshua Crabb, head of Asia-Pacific equities, who is upbeat on the changes in Japan that are resulting in nominal growth coming back and wage growth, boosting investment and consumption within the country.
