JPMAM: Asian markets holding up thanks to strong domestic revenues and tech resilience
Asset managers point out that many Asian companies now derive the bulk of their revenues domestically, cushioning them from swings in cross-border trade and tariff cycles. Large tech platforms, semiconductor-related exporters and domestic consumer champions have reported steady top-line trends, attracting both regional and global investors who are seeking growth stories outside overheated U.S. sectors. Improved earnings visibility in key markets has also helped reduce the risk premia that hung over Asian equities earlier in the year.
Flow dynamics are important too. With some investors trimming U.S. exposure amid stretched valuations and shifting macro signals, funds have been redeploying capital into Asia where price-to-earnings ratios look more reasonable and growth prospects remain intact. Local institutional demand, including pension and sovereign allocations, has complemented foreign inflows, while active managers emphasize selective stock-picking across themes such as cloud adoption, industrial automation and domestic consumption upgrades.
That said, risks persist: tariffs, technology controls and geopolitics can still trigger episodic volatility, and market durability depends on policy execution and sustained corporate earnings delivery. For now, however, the combination of domestic revenue strength, a deepening tech ecosystem and a rebalancing of global portfolio allocations gives Asian markets a credible case to weather near-term shocks and attract patient capital seeking exposure to the region’s structural growth stories.





