• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Asia investor optimism dwindles on US policy uncertainty, China’s struggles- BofA

by January 22, 2025
written by January 22, 2025

Investing.com– Investor sentiment in Asia has dampened as markets seek clarity on Donald Trump’s administration policies and navigate China’s uneven economic recovery, according to Bank of America’s (BofA) latest Asia Fund Manager Survey.

Conducted from January 10-16, 2025, the survey gathered responses from 214 participants managing $576 billion in assets, revealing shifting regional preferences and economic outlooks.

BofA’s report noted a softening economic outlook for the Asia-Pacific (APAC) region excluding Japan, with a net 3% of respondents expecting the economy to weaken over the next 12 months. This reflects the second-weakest growth sentiment for the region in two years.

Furthermore, profit expectations have moderated from October’s highs to align with long-term averages, while valuation concerns remain elevated, BofA analysts said.

In China, optimism significantly declined, with just 10% of respondents anticipating economic strengthening, a sharp drop from 61% in October.

Investor patience has been tested by faltering market gains, and structural bearishness toward Chinese equities has surged to near all-time highs, analysts wrote. Most survey participants indicated reluctance to increase exposure to China’s market, citing cash hoarding by households and uneven policy outcomes as factors

On the other hand, Japan emerged as a favored market, according to BofA. Around 20% of respondents forecast double-digit returns for Japanese equities in 2025, supported by expectations of corporate earnings growth and a stable macroeconomic environment.

Semiconductor stocks led sector preferences regionally, followed by banks and consumer staples, while real estate and materials lagged.

BofA analysts suggest global investors remain cautious, particularly in light of uneven economic recoveries and geopolitical uncertainties. They emphasized that strategic positioning will be essential to navigating the volatility ahead.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Indonesia fines Google $12 million for unfair business practices
next post
TikTok owner ByteDance plans to spend $12 billion on AI chips in 2025, FT reports

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Lawyer group urges overhaul of US bank charter...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Biogen proposes to buy remaining stake in Sage in $442 million deal
    • Japan government plans record $730 billion budget for next fiscal year, Jiji reports

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy