Where Are The Best Investment Opportunities In Asia Right Now?

Asia remains one of the world’s most dynamic regions, but uncertainty looms on the horizon. The global landscape has shifted, with Donald Trump’s presidency ushering in an era of anti-trade sentiment and China’s economic slowdown adding to the uncertainty. These factors have cast a shadow over Asia’s broader investment outlook.

Yet, even in uncertain times, opportunities exist for those who know where to look. Smart investors who can identify emerging trends and resilient sectors stand to gain.

This very topic took center stage at the FSMOne Invest Expo 2025 which happened last month on January 18. In a compelling presentation titled “Asia – The Gateway to New Opportunities,” Thio Siew Hua, Head of Equities at Lion Global Investors, provided key insights into the region’s evolving investment landscape.

We take a look at three insights that were shared during the presentation.

#1 The Fear Of Trump Is Often Worse Than Reality

For investors, headlines about President Trump’s policies can trigger fear and uncertainty. His strong rhetoric on trade and economic policy often paints a picture of drastic shifts, but history suggests otherwise. More often than not, his bark is worse than his bite.

In practice, Trump’s positions tend to moderate over time, constrained by the checks and balances within the U.S. political system. While markets have reacted by pricing in worst-case scenarios, the actual outcomes may not be as severe as feared.

Take the U.S. dollar as an example. It surged to a peak before Trump’s inauguration, reflecting initial market anxieties. Yet, as reality set in, the greenback eased off, proving that fears can sometimes be overstated.

Meanwhile, China’s economy remains sluggish, with past stimulus efforts proving insufficient. However, in the face of mounting external challenges, the Chinese government has shown stronger resolve to support both financial markets and the struggling property sector.

According to Thio, we can expect even more stimulus measures ahead. Historically, China’s market rallies have been driven more by policy intervention than organic growth—making government actions a key factor for investors to watch.

#2 Where’s The Value For Asia Investors?

For investors focused on Asia, there are compelling pockets of value across the region. One of the biggest emerging themes is a stronger emphasis on improving shareholder returns, a trend that is reshaping key markets.

In China, state-owned enterprises (SOEs) are under increasing pressure to enhance shareholder value through concrete financial metrics like return on equity (ROE). As a result, many SOEs are ramping up share buybacks and issuing higher dividends—a significant shift that could unlock value for investors.

In South Korea, a similar transformation is underway. The government is encouraging the country’s powerful Chaebols (large family-owned conglomerates) to return more capital to shareholders through share buybacks. Historically, Korea has been considered a “cheap” market, but with this push for better capital allocation, investor sentiment is starting to shift, which could lead to a market re-rating.

Meanwhile, Singapore’s banking sector continues to stand out. Among the three local banks, DBS has significantly outperformed its peers over the past five years. The key reason? A strong focus on shareholder returns and reducing excess capital, which has helped DBS command a premium valuation compared to UOB and OCBC.

For investors looking at Asia, these shifts in corporate governance and capital allocation present exciting opportunities. The question now is: which companies will take the lead in maximising shareholder value?

#3 Pockets Of Growth For Asia

While Asia is undoubtedly influenced by developments in the United States, there are clear areas of growth emerging across the region. One of the most significant is the defence sector, where rising geopolitical tensions are driving increased military spending.

South Korea and India are two standout beneficiaries of this trend. South Korea, in particular, is seeing a surge in defence production as regional threats keep military budgets high. With North Korea on its doorstep and the US taking a more inward-looking stance, South Korea has little choice but to ramp up its own defence manufacturing.

India, on the other hand, is experiencing a broader transformation beyond just defense. Infrastructure investments are accelerating, making the country more attractive to global investors. The manufacturing and production sectors are also gaining momentum, a trend that is expected to play out over the next decade.

Another key advantage for India is its growing role as an alternative to China in global supply chains. American companies looking to diversify their operations away from China are increasingly turning to India, particularly in the pharmaceutical industry. This shift could provide a significant boost to India’s healthcare sector.

Overall, valuations across Asia remain attractive, and concerns over US policies may prove to be less damaging than feared. Meanwhile, China’s stimulus measures should help support regional growth, creating more opportunities for investors willing to look beyond the headlines.

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