Asia's Investment Surge: A New Era in Capital Flows

Asia, excluding China, has seen significant capital inflows, totaling about $100 billion in the last nine months, as global investors seek diversification. Japan and technology sectors are key beneficiaries. Capital flows are driven by a reconfiguration of supply chains and geopolitical shifts affecting global investment strategies.

In a significant shift, Asia, excluding China, has attracted approximately $100 billion in capital inflows over the past nine months. Goldman Sachs' Asia-Pacific President Kevin Sneader highlighted this trend, attributing it to global investors seeking diversification from the U.S. markets.

Japan has notably benefited from this diversification, as indicated by Sneader at the Milken Institute Asia Summit 2025 in Singapore. Despite China's recent domestic equity rally, its reliance on global hedge funds indicates partially returned interest from foreign investors.

The technology, consumer discretionary, and industrial sectors in Asia are experiencing heightened investment interest, with healthcare gaining momentum in private markets. Temasek's CEO Dilhan Pillay acknowledges the global shift influenced by geopolitical and economic factors, emphasizing the growing role of artificial intelligence across various sectors.

(With inputs from agencies.)