Global investors shift from US equities drawn by Asia's AI boom, looser Fed policy: BofA

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0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',r=n._store.getNotifications(),a=n._generatePanelMarkup(o,r),i.innerHTML=a;break;case"error_panel":a=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=a}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(D))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),U=function(){function e(t,n,o){L(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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of the three-day BofA Securities Asia Pacific Conference starting on Monday, Candace Browning said that US equities had been exceptional from the first half of 2020 to the end of 2024, attracting US$1.2 trillion from global investors, compared with US$200 billion for the rest of the world during the same period. However, the investments have slowed down this year."We see clients are diversifying away from the US into Asia," Browing said in a written interview with the Post. "The stimulus potential is big, not to mention very real competition in the tech space. We see pockets of opportunity in Asia, and valuations offer a buffer compared to expensive US stocks."Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.This year, investors have allocated evenly between US equity funds and international markets, with US$50 of every US$100 of inflows going to US stocks and the remainder to other global markets, she added.The global AI market is expected to quadruple from US$300 billion in 2025 to nearly US$1.2 trillion by 2030, according to BofA Securities. Photo: Shutterstock alt=The global AI market is expected to quadruple from US$300 billion in 2025 to nearly US$1.2 trillion by 2030, according to BofA Securities. Photo: Shutterstock>"The falling US dollar and expectations of easier [Federal Reserve] policy in 2025-2026 have spurred sensible inflows to Asia equities, and more importantly [into] Asia debt funds," Browning said.With the AI boom in Asia, particularly in mainland China, the global AI market is expected to quadruple from US$300 billion in 2025 to nearly US$1.2 trillion by 2030, of which about US$1 trillion will potentially be deployed in Asia-Pacific, according to BofA."Asia is the backbone of the global AI supply chain," she said. "The region underpins nearly every layer of the AI stack and can drive both hardware production and software innovation."Mainland China, one of the world's largest consumer markets, brings energy resources and a complete AI ecosystem, according to BofA. 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