India Takes the Lead in Asian Investments

According to a recent survey by BofA Securities, India has emerged as the most preferred market for investment in Asia, surpassing Japan which now holds the second position. China follows in third place, marking a significant shift in investor preferences across the continent.

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Why Investors Are Turning to India

The survey highlights that a majority of global fund managers view India as the primary beneficiary of tariff-related realignments. "India emerges as the most favoured market, perceived as a likely beneficiary of the supply chain realignments following the effects of tariffs," the report states. This shift is attributed to India's robust infrastructure and consumption sectors, which continue to attract significant investor interest.

Sectoral Preferences and Global Outlook

In the Asia ex-Japan portfolio, investors are showing a preference for telecom and software, while steering clear of energy, materials, and certain consumer discretionary sectors. The survey also notes an improved outlook for semiconductors, with fewer respondents anticipating a downturn in the cycle.

Globally, there are signs of a recovery in the growth outlook, with a net 59% of fund managers expecting a weaker global economy, an improvement from the previous month's more pessimistic view.