“Policy support and interest rate cuts have given capital markets a strong start, but as we move into 2026, we remain cautious of fiscal challenges, shifting global trends, and concentrated bets in AI,” said Jason Kuan, Director, Investment Research and Advisory at Chief Investment Office, CIMB Singapore.
GLOBAL INVESTMENTS THIS year will be defined by the growing influence of artificial intelligence (AI) and Asia’s rising investment appeal, according to CIMB, one of Southeast Asia’s leading banking groups.
While technology giants pour billions into AI capacity, history cautions against exuberance, underscoring the need to focus on highquality largecap tech and AI supply chain leaders. At the same time, Asia’s expanding role in AI and ongoing market reforms are creating a supportive backdrop for earnings and valuations.
Against this dynamic landscape, CIMB highlights opportunities in resilient Asian equities, quality corporate bonds, and diversified portfolios enhanced with hedging strategies to navigate volatility and deliver sustainable returns.
“Policy support and interest rate cuts have given capital markets a strong start, but as we move into 2026, we remain cautious of fiscal challenges, shifting global trends, and concentrated bets in AI,” said Jason Kuan, Director, Investment Research and Advisory at Chief Investment Office, CIMB Singapore.
“Investors may want to be more selective than just focusing on the US market. US stock prices are currently quite high, and uncertainty around trade policies and government spending could create more volatility. Because of this, we expect more investors to look beyond US markets and explore opportunities in Asia. Singapore, in particular, stands out as a safe and stable investment destination, supported by reforms that have boosted confidence and driven strong returns,” he added.
At the same time, gold has surged to new highs as investors seek safety amid global tensions. While corrections may present opportunities to add positions, CIMB believes gold should be part of a diversified portfolio, but caution against chasing the rally simply on recent gains.
AI to shape market narrative
Leading technology companies are investing billions to meet the surging demand for AI compute capacity. While AI continues to stand out as a powerful long-term investment theme, current market dynamics call for measured caution. History shows that periods of exuberance often precede the adoption of truly transformative technologies.
In this environment, CIMB recommends focusing on high-quality large-cap technology companies and AI supply chain leaders, which are better positioned to withstand volatility and deliver sustainable growth.
Two key forces are shaping the next phase of Asian equities: the region’s expanding role in the global AI supply chain and market reforms across major economies that are enhancing governance, liquidity, and creating a more supportive backdrop for earnings and valuations.
Beyond the US, Asia is playing an increasingly important role in the global AI supply chain. The rise of DeepSeek in China, coupled with sustained demand for semiconductors and AIrelated hardware in Taiwan region, South Korea, and Japan, underscores the region’s growing technological capabilities.
At the same time, structural reforms are strengthening capital markets. Japan and South Korea are driving improved capital allocation and shareholder returns, China is channeling more institutional capital into domestic equities while supporting buybacks and tightening oversight of listed companies, and Singapore is implementing measures to revitalize the equity market, attract investment, and boost liquidity in small- and midcap stocks.
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