Asia will continue to show resilience in the face of evolving global trade dynamics, given several tailwinds supporting the region’s growth prospects, according to Andrew Swan, portfolio manager at Man Group.

While the US tariffs remain a key concern, China’s economic shift, a weakening US dollar, growth of the tech sector and monetary policy changes are supporting this regions’ growth outlook, Swan said.

“China’s transition of its economic model from an investment-driven growth model to a more consumption-driven economy is a critical factor in its growth outlook.

“The Chinese government is focusing on improving social safety nets, which is expected to unlock significant household savings and stimulate domestic consumption. This is not just short-term stimulus measure by the Chinese government, rather a long-term shift in how China wants to grow,” Swan said.

Beyond China, other markets in Asia, such as Indonesia and the Philippines are also presenting promising opportunities, which Swan said is being supported by the rate cutting cycle by the Federal Reserve (Fed) and a weakening US dollar.

“A strong US dollar historically correlates with Asian market underperformance. But with a weaker US dollar emerging, the outlook for the region is improving.

“In addition, many Asian economies have aligned their monetary policies with the US to avoid currency depreciation and capital flight. With the expectation of further rate cuts by the Fed, this will allow Asian central banks to ease monetary policy, stimulating economic growth and corporate profitability.

“Although Indonesia is having a tough time due to political concerns, as the Fed cuts rates further, the economy should reflate, which makes this market look very attractive,” he said.

According to Swan, the next phase of Asia’s tech growth will be supported by AI innovation and implementation which will be another key growth driver for the region.

“AI will play an important role in the region’s next phase of growth, particularly in consumer devices. As AI continues to be integrated into products like smartphones, tablets, and PCs, there will be a significant upgrade cycle underway.

“I believe that this is the year where consumers will be motivated to upgrade their devices, as AI integration is executed into these devices and users with be provided with greater efficiencies and functionalities than ever before,” he said.

Swan said the investment landscape in Asia looks very favourable for investors.

“We are at a very important inflection point here, which the region hasn’t been in for some time.

“China’s economic pivot, Fed rate cuts, and growth in the tech sector are all tailwinds that are driving growth in Asia. In our view investors should be looking to this region for their next leg of growth and now is a better time than ever.” said Swan.