Standard Chartered 'overweights' Asia ex-Japan; favours Taiwan, China on AI, earnings

By Yantoultra Ngui

SINGAPORE, June 22 (Reuters) - Standard Chartered said on Monday it favours Asia ex-Japan equities, particularly Taiwan and China, as strong earnings prospects, AI-driven investment and easing oil-supply concerns support the region.

Here are a few takeaways:

• At a briefing in Singapore, senior investment strategist Yap Fook Hien said Asia ex-Japan is expected to deliver the strongest earnings growth among major markets in 2026 and 2027, supported by AI spending and chipmakers.

• Standard Chartered's base case also sees shipping through the Strait of Hormuz resuming within weeks, which could ease pressure on the oil-import-dependent region.

• The bank upgraded Asia ex-Japan equities to "overweight."

• Within the region, it preferred Taiwan and China, followed by India, highlighting Taiwan's leadership in chip manufacturing, China's low valuations and innovation strength, and India's domestically driven growth.

• Global Chief Investment Officer Steve Brice said the bank remained "overweight" on global equities, with a preference for U.S. and Asia ex-Japan markets, while also favouring emerging market U.S. dollar bonds and gold.

• Standard Chartered projects the S&P 500 to touch 7,950 and gold to hit $5,100 an ounce by mid-2027.

(Reporting by Yantoultra Ngui; Editing by Sherry Jacob-Phillips)