Manulife Investment: High uncertainty in the Asian stock market in 2025, optimistic about the memory and fixed income sectors
Manulife Investment Management released its 2025 market outlook, pointing out that the Asian stock market faces high uncertainty due to geopolitical risks, interest rate changes, and other factors. It is optimistic about the memory and fixed income sectors, believing that the market underestimates the demand for high bandwidth memory. In the mainland China market, attention can be paid to companies benefiting from government policies, while South Korea and Taiwan show investment value in technology and artificial intelligence. The global interest rate cut cycle brings new opportunities, and the Asian fixed income market will continue to demonstrate resilience
According to the Zhitong Finance APP, Manulife Investment Management has released its market outlook for 2025. The firm stated that the Asian stock market is facing a beginning of high uncertainty in 2025 due to multiple factors such as geopolitical risks, leadership changes, changes in the interest rate environment, and fiscal constraints. Chen Jinglin, Senior Portfolio Manager of the Equity Division at Manulife Investment Management, expressed particular optimism about the memory sector, believing that the market still underestimates the growth potential of demand for High Bandwidth Memory (HBM).
Chen Jinglin believes that the mainland China market can focus on finding companies that can benefit from government policies aimed at promoting domestic consumption, such as opportunities arising from supply chain localization. Additionally, the markets in South Korea and Taiwan each have unique characteristics in technology and artificial intelligence, showcasing distinct investment value. In the Taiwan market, there is an expectation for broader applications of artificial intelligence in consumer products.
Pan Leqin, Head of Asset Allocation and Senior Portfolio Manager at Manulife Investment Management Asia, stated that with the global interest rate cut cycle fully underway, over 50% of central banks have begun to lower rates, bringing new investment opportunities for both developed and emerging markets. At the same time, the trends of de-globalization and "friend-shoring" are reshaping the global trade landscape, creating new opportunities for regional leaders and thematic investments in areas such as artificial intelligence and clean energy.
Murray Collis, Chief Investment Officer of the Fixed Income Products Division at Manulife Investment Management Asia (excluding Japan), stated that the Asian fixed income market will continue to demonstrate robust resilience in 2025. In the context of a strong dollar environment and increased interest rate sensitivity, Asian high-yield bonds and investment-grade credit stand out, providing both diversification advantages and stable income potential