Asia, one of the world’s most dynamic regions, finds itself at a crossroads of both uncertainty and opportunity. The global landscape has evolved rapidly, with Donald Trump’s presidency ushering in a wave of anti-trade sentiment and China’s economic slowdown casting a long shadow over the region. Together, these factors have left Asia’s investment outlook clouded with doubt.
Yet, despite the challenges, Asia remains a region ripe with opportunities for those who know where to look. By identifying emerging trends and resilient sectors, savvy investors can find avenues for growth even in uncertain times.
These themes took centre stage at the FSMOne Invest Expo 2025, held on January 18, where Thio Siew Hua, head of equities at Lion Global Investors, delivered a compelling presentation on the region’s evolving investment landscape.
An article from Dollars and Sense broke down the key takeaways:
The fear of Trump – overblown or overcome?
For many investors, headlines about President Trump’s policies can create a sense of dread and unease. His strong rhetoric on trade and economic policy often paints a picture of dramatic shifts, but historical patterns suggest that these fears may not always be justified.
While Trump’s policies are frequently portrayed as aggressive and unpredictable, his actions have tended to moderate over time, shaped by the political checks and balances within the US system. Markets often react by pricing in worst-case scenarios, but as reality unfolds, the actual outcomes may be less severe than anticipated.
For example, the US dollar surged ahead of Trump’s inauguration, fueled by market anxieties. However, once the dust settled, the dollar softened, proving that initial fears were often exaggerated.
Meanwhile, China’s economic slowdown continues, and past stimulus measures have failed to spark long-term recovery. However, as external pressures mount, China has shown increasing determination to support its financial markets and key sectors, particularly its struggling property market. According to Thio, more stimulus measures are likely, which could provide the catalyst for a market rebound.
Historically, Chinese market rallies have been driven less by organic growth and more by government intervention—making the actions of Chinese policymakers crucial for investors to watch.
Where’s the value for Asia investors?
Asia presents several pockets of value for astute investors. One of the most notable shifts is the increasing emphasis on improving shareholder returns, which is reshaping key markets across the region.
In China, state-owned enterprises (SOEs) are under increasing pressure to enhance shareholder value through concrete financial metrics, such as return on equity (ROE). This shift is leading many SOEs to accelerate share buybacks and issue higher dividends—strategies that could unlock significant value for investors.
South Korea is experiencing a similar transformation. The government is encouraging its powerful chaebols (large family-owned conglomerates) to return more capital to shareholders.
Historically, South Korea was viewed as a “cheap” market, but this push for better capital allocation is shifting investor sentiment, which could lead to a market re-rating.
Singapore’s banking sector is another bright spot. DBS has significantly outperformed its peers over the past five years, thanks in part to a strong focus on shareholder returns and reducing excess capital. This strategy has allowed DBS to command a premium valuation compared to other local banks, such as UOB and OCBC.
As corporate governance and capital allocation in Asia continue to evolve, investors will need to ask: Which companies will lead the way in maximising shareholder value? This question presents exciting opportunities for those with the foresight to invest in companies driving these changes.
Pockets of growth across Asia
Although Asia is undoubtedly influenced by global events, there are specific sectors within the region that are experiencing notable growth. One of the most significant areas is the defence sector, where rising geopolitical tensions are driving increased military spending.
South Korea and India are two of the most prominent beneficiaries of this trend. In South Korea, defence production is soaring as regional threats—particularly from North Korea—continue to drive military budgets higher. With the US adopting a more inward-looking stance, South Korea has no choice but to ramp up its defence manufacturing.
India is also undergoing a broader transformation. Infrastructure investments are accelerating, making the country increasingly attractive to global investors. Additionally, India’s manufacturing and production sectors are gaining momentum, creating a robust economic foundation for the future.
Perhaps most notably, India is emerging as a viable alternative to China in global supply chains. As American companies look to diversify their operations away from China, India is becoming an attractive option—particularly in the pharmaceutical industry. This shift could provide a substantial boost to India’s healthcare sector.
Asia’s resilience amid uncertainty
Despite the uncertainties surrounding US policies and China’s economic slowdown, Asia remains a region with significant growth potential. Valuations across the region remain attractive, and concerns over Trump’s trade policies may prove to be overstated. At the same time, China’s stimulus measures should provide a cushion for regional growth, creating more opportunities for investors willing to look beyond the headlines.
As Thio Siew Hua’s insights underscore, Asia’s evolving investment landscape presents opportunities for those who can spot emerging trends and identify sectors that are well-positioned for growth. The key will be to remain attuned to shifts in policy, governance, and market behaviour—ensuring that investors can navigate the complexities of Asia and uncover new avenues for success.