In case you missed it, Asia’s Most Read Publications 23 Jun to 29 Jun 2026

Research evidence excerpt

In case you missed it, Asia’s Most Read Publications 23 Jun to 29 Jun 2026

center buildout are now large enough

to be meaningful at a macro level (Figure 28) - creating a wealth boost not just for corporates and households, but even for

the government - enabling long-term measures and planning. As such, we continue to recommend adding on any dips and

staying with maximum exposure in Korea. Korea remains our most preferred market in the region and we raise our 12m-

out base/bull/bear case KOSPI targets to 12,500/15,000/8,000.

China Equity Strategy (Erin Zhang, CFA)

Three-Channel Playbook: How a Hormuz Reopening Could Boost China Stocks

Many investors are looking for a playbook on a potential Strait of Hormuz reopening. In our view, this outcome would be a

constructive tailwind for selected China equity themes in 2H26. As Brent crude retreats toward the US$70-80 per barrel range

and the extreme tail risk of an oil-price spike fades, macro resilience should strengthen. The impact would likely cascade

through three distinct investment channels: (1) the macro and fundamental effects of lower oil prices, (2) incremental demand

from Middle East reconstruction, and (3) a recovery in global demand that benefits Chinese exporters (see Figure 18 and

Figure 19 for the list of top exporters). At the sector level, a durable reopening/normalization around Hormuz is seen as

supportive fortanker equities. Lower fuel/feedstock costs should lift margins for airlines, logistics, chemicals and soft

beverages, though equity upside may be tempered by still-soft discretionary demand and incomplete volume/price

normalization. A pickup in Middle East reconstruction across traditional infrastructure and renewables could support

engineering, machinery, steel construction and related exporters.