Technology has continued to be the most dynamic sector in Asia, as in most other markets, and our view is that this trend has further to run.
The recent earnings and the business outlooks from the region’s key technology companies combined with the aggressive capital expenditure plans of US technology companies drove double-digit percentage gains in the stock markets of Korea and Taiwan in April. Technology was the best‑performing sector in the region last month, as it has been over the last year.1
Technology now makes up over 41% of the MSCI Asia ex-Japan index by weight, and Taiwan is the largest market in the index (28%), overtaking China (26%)2. Samsung Electronics recently became the second Asian company to reach a market value of $1 trillion, following Taiwan Semiconductor.
AI and robots
We have written before about the dynamism of the region’s technology companies. We believe the Asian tech supply chain, including the companies in Taiwan and Korea, are the best way to invest in the growth in artificial intelligence. For these companies, including Taiwan Semiconductor (chip production) and SK Hynix and Samsung Electronics, (memory chips) it doesn’t matter which of the competing large language models that power AI emerge as the winner or winners, or which companies developing agentic AI or physical AI (such as humanoid robots) will win the race. Any winner will likely need the semiconductors, memory and server (and robotic) assembly capabilities of the companies based in Asia.
These supplier companies trade at attractive valuations, well-below those of the big US tech companies, and in some cases, the Asian companies are getting cheaper on a price-to-earnings basis because their earnings are growing faster than their share prices.
These companies also have strong balance sheets and are paying dividends that we believe will grow strongly in the years ahead.
Chip demand
Demand for semiconductors is exceeding supply. We meet regularly with the region’s most important tech companies, and they tell us that they expect business to remain robust next year and the year after. That gives us comfort that peak demand is further in the future.
The conflict in the Middle East adds an element of risk to the market outlook, particularly around energy supplies and inflation. We don’t claim to have any insight into how or when the war with Iran will end. The companies in Asia that we have spoken to are relatively relaxed so far, saying they have adequate supplies of energy and raw materials.
A balance of companies
One of our core beliefs as longtime active investors in the region is the importance of owning a diverse portfolio of stocks. We focus on building an all-season portfolio that can manage through periods of market volatility. This could mean owning a balance of companies exposed to US and global demand, particularly in the technology sector, as well as companies selling products and services to domestic consumers in India, Southeast Asia and Australia, where demand should be resilient even if we do see a period of slower economic growth globally. It could also mean owning energy companies, producers of commodities such as gold and copper miners and owning defense companies.
We think it makes sense to own liquid, large-cap businesses with real cash flows and proven management teams. We look for a combination of growth and value - companies that will grow their earnings and therefore to be able to deliver growing dividend streams, that are reasonably priced, with balance sheet strength and good governance.
Best of both
We think the most attractive countries for investors in the region are Taiwan, Australia, Singapore, South Korea and India. These five countries offer the best of both developed and emerging markets, in our view.
We don’t invest in Chinese companies because we don’t believe China is friendly to investors and because we think the economy has significant structural challenges. We also believe that over time geopolitical tensions between China and the US and other large democracies around the world will escalate.
Our view at the time of writing is that economic momentum is broadly positive around the globe and proving to be resilient so far. We remain cautiously optimistic about the outlook for Asia Pacific (ex China) equities in 2026. Markets are constantly evolving, but right now we believe we could be set for stronger returns in the first half of the year with more risk in the second half, particularly around the US mid-term elections.
Footnotes
1Past performance does not predict future returns.
2JPMorgan note, as at 4.5.2026, citing MSCI, Bloomberg data.
Important information
Marketing Communication.
This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. It is information only and is not investment advice. Holding examples are for illustrative purposes only and are not a recommendation to buy or sell. The views expressed are those of the authors at the time of preparation, are not necessarily those of Jupiter as a whole and may be subject to change. Past performance does not predict future returns. The value of investments and income may go down as well as up and investors may not get back amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. This document may include ESG-related content which reflects Jupiter’s current policies and frameworks and may evolve over time. No part of this document may be reproduced in any manner without the prior permission of Jupiter.
Argentina
This document and the information contained herein does not constitute and is not intended to constitute an offer of securities and accordingly should not be construed as such. The fund and any other products or services referenced in this document may not be licensed, authorized to distribution in all jurisdictions, and unless otherwise indicated, no regulator or government authority has reviewed this document or the merits of the products and services referenced herein. This document and the information contained herein has been made available at your exclusive own initiative in accordance with the restrictions and/or limitations implemented by any applicable laws and regulations. This document is provided on a confidential basis for informational purposes only and may not be reproduced in any form. Before acting on any information in this document, prospective investors should inform themselves of and observe all applicable laws, rules and regulations of any relevant jurisdictions and obtain independent advice if required. This document has been sent at the specific request of and is for the use of the named addressee only and should not be given, forwarded or shown to any other person (other than employees, agents or consultants in connection with the addressee’s consideration thereof). The fund is not under the public offer regime.
Brazil
The shares in the fund may not be offered or sold to the public in Brazil. Accordingly, the shares in the fund have not been nor will be registered with the Brazilian Securities Commission - CVM nor have they been submitted to the foregoing agency for approval. Documents relating to the shares in the fund, as well as the information contained therein, may not be supplied to the public in Brazil, as the offering of shares in the fund is not a public offering of securities in Brazil, nor used in connection with any offer for subscription or sale of securities to the public in Brazil.
Chile
Neither the issuer nor the shares have been registered with the comisión para el mercado financiero pursuant to law no. 18.045, the ley de mercado de valores and regulations thereunder. This document does not constitute an offer of, or an invitation to subscribe for or purchase, the shares in the republic of chile, other than to the specific person who individually requested this information on his own initiative. This may therefore be treated as a “private offering” within the meaning of article 4 of the ley de mercado de valores (an offer that is not addressed to the public at large or to a certain sector or specific group of the public.
Colombia
This document does not constitute a public offer in the Republic of Colombia. The offer of the fund is addressed to less than one hundred specifically identified investors. The fund may not be promoted or marketed in Colombia or to Colombian residents, unless such promotion and marketing is made in compliance with Decree 2555 of 2010 and other applicable rules and regulations related to the promotion of foreign funds in Colombia.
The distribution of this document and the offering of Shares may be restricted in certain jurisdictions. The information contained in this document is for general guidance only, and it is the responsibility of any person or persons in possession of this document and wishing to make application for Shares to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Prospective applicants for Shares should inform themselves of any applicable legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile.
Costa Rica
This is an individual and private offer which is made in Costa Rica upon reliance on an exemption from registration before the General Superintendency of Securities (“SUGEVAL”), pursuant to article 6 of the Regulations on the Public Offering of Securities (“Reglamento sobre Oferta Pública de Valores”). This information is confidential, and is not to be reproduced or distributed to third parties as this is NOT a public offering of securities in Costa Rica.
As this is NOT a public offering of securities under the definition set forth in the Securities Market Statute (“Ley Reguladora del Mercado de Valores”), the product being
offered is not intended for the Costa Rican public or market and neither is registered or will be registered before the SUGEVAL and, accordingly, it is not covered by the supervision, disciplinary regime and protections afforded to local investors by the Securities Market Statute with regards to the public offerings of securities, and it is not
registered in the National Registry of Securities and Intermediaries (“Registro Nacional de Valores e Intermediarios”).
As this is a private offering of securities, the investor will not have access to ongoing reporting required by the regulations set forth by the National Council for Supervision of the Financial System (“CONASSIF”) and the SUGEVAL.
As this is NOT a public offering of securities registered in the National Registry of Securities and Intermediaries, the investor will not be able to trade the product in the secondary market.
Mexico
The securities have not been and will not be registered with the National Registry of Securities, maintained by the Mexican National Banking and Securities Commission and, as a result, may not be offered or sold publicly in Mexico. The fund and any underwriter or purchaser may offer and sell the securities in Mexico on a private placement basis to Institutional and Accredited Investors pursuant to Article 8 of the Mexican Securities Market Law.
Paraguay
The Fund has not been registered with the Comisión Nacional de Valores of Paraguay (CNV), neither with the Stock Exchange of Asuncion (BVPASA) and is being placed by means of a private offer. CNV nor BVPASA has not reviewed the information provided to the investor. This document is only for the exclusive use of specific investors in Paraguay and is not for public distribution.
Peru
IMPORTANT NOTICE: The Superintendencia del Mercado de Valores (SMV) does not exercise any supervision over this Fund and therefore the management of it. The information the Fund provides to its investors and the other services it provides to them are the sole responsibility of the Administrator. This document is only for the exclusive use of institutional investors in Peru and is not for public distribution.
Uruguay
The sale of the shares qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The shares must not be offered or sold to the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The shares are not and will not be registered with the Financial Services Superintendency of the Central Bank of Uruguay. The shares correspond to investment funds that are not investment funds regulated by Uruguayan law 16,774 dated September 27, 1996, as amended.