5 March 2026
The Asian Equities and Asian Fixed Income team assess the recent Middle East developments and implications for Asia asset classes.
Asset allocation views on SpaceX IPO, Reopening of Strait of Hormuz, and the BOJ rate hike
The Multi Asset Solutions Team (MAST) provides asset allocation views on three recent developments that could influence markets in different ways: the SpaceX Initial Public Offerings (IPO), the reopening of the Strait of Hormuz, and the Bank of Japan’s (BOJ) rate hike. In our view, these events create mixed signals across growth, inflation and liquidity. Overall, the backdrop still appears uneven, and this may support a measured and selective approach to asset allocation rather than a broad increase in risk.
Not another bubble: How semiconductors are powering a real future
Semiconductors sit behind almost every modern experience – from smartphones and cars to cloud computing and today’s AI tools – yet they remain largely invisible to most people. They are more than chips only, and the demand is being supported by several long-term forces. We believe that today’s semiconductor excitement is not a repeat of the dot-com bubble, as investment is tied to real infrastructure and revenue-generating services. And the opportunity is broader than a handful of headline AI names.
Global tech and semiconductors: what’s been driving returns and what to watch next
Semiconductors have been one of the strongest parts of global equity markets so far in 2026, with performance supported by a powerful mix of demand and improving fundamentals. The headlines have focused on artificial intelligence (AI), but the opportunity set is broader than a single theme or a handful of companies. As AI infrastructure expands, it is driving investment not only in high-performance computing chips, but also in the networking and power technologies that keep modern data centres running. At the same time, parts of the industry outside AI are showing early signs of stabilisation and recovery.
Implications of US midterm elections on Asian equities
While selected markets and sectors may see near-term volatility as investors assess the implications for fiscal policy, trade, regulation and US Treasury yields, the overall impact on Asian equities may be limited. More importantly, domestic growth drivers, policy priorities and company fundamentals are likely to remain the key drivers of the region’s equity markets.
Manulife Global Multi-Asset Diversified Income (GMADI) Fund: Navigating the selloff
The strategy has not been immune to the recent equity sell-off, particularly given its selected exposure to semiconductor and AI-infrastructure themes. Looking ahead, the emphasis remains on diversification, income generation and disciplined security selection.
Asian Fixed Income: Navigating the selloff
We remain constructive on Asia fixed income despite recent market volatility. We see a few potential medium-term catalysts, including stronger foreign investment flows into select Asian economies and a more benign inflation backdrop.
©1999 - 2026 Manulife Investment Management (M) Berhad (Registration No. 200801033087 (834424-U))
