Manulife Investment: High Uncertainty in Asian Stock Markets in 2025, Bullish on Memory and Fixed Income Sectors.

Manulife Investment Management has released its market outlook for 2025. The bank stated that the Asian stock markets are facing a high level of uncertainty at the beginning of 2025 due to various factors such as geopolitical risks, leadership changes, changes in interest rate environment, and fiscal constraints. Chen Jinglin, Senior Portfolio Manager of Manulife Investment Management's Equity Division, expressed strong optimism in the memory sector, believing that the market still underestimates the growth potential of demand for High Bandwidth Memory (HBM). Chen Jinglin believes that the Chinese mainland market can focus on finding companies that will benefit from government policies aimed at promoting domestic consumption, such as opportunities brought about by the development of localized supply chains. Additionally, the markets in South Korea and Taiwan have their own unique characteristics in the technology and artificial intelligence sectors, showing distinct investment value. In the Taiwanese market, there is anticipation for a wider application of artificial intelligence in consumer products. Manulife Investment Management's Head of Asset Allocation in Asia and Senior Portfolio Manager, Pan Leqin, stated that with the global easing cycle in full swing, over 50% of central banks have already started to cut interest rates, bringing new investment opportunities to both developed and emerging markets. At the same time, the trends of deglobalization and nearshoring 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 Manulife Investment Management's Asia (excluding Japan) Fixed Income Products Division, stated that the Asian fixed income markets will continue to demonstrate robust resilience in 2025. In a environment of a strong US dollar and increased interest rate sensitivity, Asian high yield bonds and investment-grade credits stand out, providing both diversification advantages and stable income potential.