Asia Sees $100 Billion Investment Boost as Global Funds Diversify
Asia, excluding China, has drawn around $100 billion in capital inflows over the past nine months as global investors shift away from a heavy reliance on the US, according to Kevin Sneader, president of Goldman Sachs Asia-Pacific ex-Japan.
Investors Diversify Beyond the US
Speaking at the Milken Institute Asia Summit 2025 in Singapore, Sneader stressed that the trend reflects diversification rather than an exit from US markets. He noted Japan has emerged as a major beneficiary, while China’s recent equity rally has been largely fuelled by domestic investors and interest in technology.
Foreign funds are cautiously reassessing China, he said, but their exposure remains below historical levels. Hedge funds have returned with moderate holdings, yet mutual funds remain hesitant. “They’re operating around the 60th to 65th percentile of their average holdings. That’s not 100%, so they’re not back to where they were,” Sneader explained.
Key Sectors Attracting Attention
Sneader pointed out that technology, consumer discretionary and industrials are attracting strong interest across Asia, while healthcare is gaining traction in private markets. These sectors, he said, represent areas where investors see both resilience and growth potential.
Globalisation and Supply Chain Shifts
At the same event, Temasek International CEO Dilhan Pillay said traditional globalisation was no longer shaping returns in the same way. He argued that supply chains are being reconfigured for resilience rather than efficiency, and this comes at a cost similar to an insurance premium.
Pillay also highlighted artificial intelligence as a transformative force, influencing politics, society and economics alike. Temasek, Singapore’s state investor, manages a S$434 billion ($340 billion) portfolio and reported a record 11.6% rise in value as of March 31. The US remains its largest investment destination, accounting for 24% of its portfolio, up from 22% the previous year.
with inputs from Reuters