Standard Chartered Raises Asia Outlook, Backs Taiwan and China on AI Boom

Standard Chartered has upgraded its investment outlook for Asia excluding Japan, citing strong earnings prospects and growing momentum in artificial intelligence-related sectors, while identifying China and Taiwan as its preferred markets in the region.

In a new investment strategy note, the bank said it is “overweight” on Asian equities outside Japan, reflecting expectations that technology-driven growth and improving corporate earnings will support regional markets in the months ahead.

Taiwan emerged as one of the bank’s top picks due to its dominant position in the global semiconductor industry and its central role in the AI supply chain. Analysts pointed to continued demand for advanced chips used in artificial intelligence applications, data centers, and high-performance computing as key drivers of growth.

China was also highlighted as an attractive market despite ongoing economic challenges. Standard Chartered said improving corporate profitability, supportive government policies, and relatively low market valuations could create opportunities for investors seeking exposure to the world’s second-largest economy.

The bank noted that enthusiasm surrounding artificial intelligence has become a major force shaping global investment flows, benefiting companies involved in chip manufacturing, cloud computing, data infrastructure, and related technologies. Taiwan’s technology sector, in particular, has been a major beneficiary of this trend.

Analysts also pointed to signs of stabilization in parts of China’s economy, including manufacturing activity and consumer spending, although they cautioned that challenges in the property sector and geopolitical tensions remain risks for investors.

The bullish outlook comes as global investors increasingly look toward Asia for growth opportunities amid uncertainty in some Western markets. Several international financial institutions have recently raised expectations for technology-related earnings across the region.

Market participants will be closely watching upcoming corporate earnings reports and economic data releases to determine whether the optimism surrounding AI-driven growth can translate into sustained gains for Asian equities.

While maintaining a positive view on Asia ex-Japan overall, Standard Chartered advised investors to remain selective and focus on sectors expected to benefit most from technological innovation, digital transformation, and improving earnings fundamentals.