Heaptalk, Jakarta – In the midst of economic uncertainty ahead of the new era of Trump’s presidency, HSBC predicts that economic growth in Asia, outside Japan, will remain resilient at 4.4%.
This projection indicates solid growth in Asia which is above the global average of 2.7%. Based on HSBC’s observations, this growth was supported by strong economic growth in India, ASEAN countries, and also driven by the expanding China’s policy stimulus. HSBC revealed that the average economic growth in ASEAN reached 4.4%, and even to hit 4.8% growth for the top 6 ASEAN countries.
Considering this projection, HSBC believes that the 2024 trend will continue. Diversified multi-asset portfolios is forecasted to outperform cash substantially. Stock performance is predicted to outperform bonds, while bonds will outperform cash.
“Globally, diversified multi-asset portfolios has outperformed cash substantially in 2024, we expect the outperformance of multi-asset portfolios will continue in 2025,” said Fan Cheuk Wan, Chief Investment Officer, Asia, Global Private Banking and Wealth HSBC.
Fan Cheuk Wan also mentioned several countries in Asia that have a tendency for generating attractive yield.
“We are overweight on Japanese, Indian, Singaporean stocks because of their growth potential and attractive risk profile,” said Fan Cheuk Wan.
In order to reduce geopolitical risks and uncertain world trade, HSBC Global Private Banking (GPB) also views the importance of portfolio diversification in hedge funds and gold as a means of hedging against extreme risks.
