Despite headwinds: “Asia remains an attractive market”

Despite 2023 posing challenges for Asia’s investment landscape, the region’s variety offers areas of opportunity and strength, signalling optimism for this year. Amid ongoing macroeconomic uncertainties, Teera Chanpongsang, Portfolio Manager at Fidelity International, outlines in a recent market insight why Asia remains an attractive market for long-term investors.

“Weak sentiment towards China is depressing the near-term outlook for the region, but we are seeing some positive signs on the ground,” says Chanpongsang. “We believe that focusing on the region’s structural growth trends – alongside a disciplined, fundamentals-driven stock picking approach – can deliver strong investment outcomes.”

While sentiment towards Asian equities has been weak recently, the portfolio manager highlights Taiwan, Indonesia, and Malaysia as bright spots. “India has also continued its upward trajectory from 2023, buoyed by local investor participation, broadening liquidity in the domestic market, and robust economic fundamentals,” says Chanpongsang.

Sectorwise, Fidelity believes the Asian tech sector will be able to sustain a long-term demand trajectory and provide encouraging prospects for the future. The momentum accelerated last year, with a focus on tech firms benefiting from AI advancements.

Fidelity believes key players like TSMC and Samsung Electronics are positioned well for this trend.