Asia Fund Manager Survey: Tech Hardware rises; Indonesia slips

Research evidence excerpt

Asia Fund Manager Survey: Tech Hardware rises; Indonesia slips

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Asia Fund Manager Survey

Tech Hardware rises; Indonesia slips

BofA June Asia Fund Manager Survey 16 June 2026

Spotlight: Energy security concerns have eased significantly, with respondents saying Equity Strategy

high/extreme concern falling to 18% in Jun (vs. 91% in Apr), while moderate concern has Asia Pacific

become the majority view (68%). Reflecting this shift, growth and earnings expectations

strengthened further in June. Notably, 41% of respondents remain unhedged against

downside risk in the AI trade.

Expected Returns: expected 12-month returns for APAC equities moderated following

last month’s improvement but remain broadly in line with historical norms. AI upside still

appears underappreciated, with only 9% of FMS investors believing the positive impact Kaspar Lam >>

of AI on equities is more than fully priced in. Research Analyst Merrill Lynch (Hong Kong)

kaspar.lam@bofa.com

Themes: Earnings are increasingly viewed as key driver for Japan equities, rising to 41% Masashi Akutsu >>

in Jun, while policy normalization has also gained traction (27%). Taiwan (41%) remains Strategist

the clear beneficiary of the AI cycle, while the US saw increased interest, rising from BofASmasashi.akutsu@bofa.comJapan

10% in May to 18% in Jun. Winnie Wu >>

Research Analyst

Positioning: Indonesia has overtaken India as investors’ least preferred market, while Merrill Lynch (Hong Kong)

North Asia remains the clear favorite. In APAC ex Japan, FMS investors are now more winnie.wu@bofa.com

overweight Tech Hardware than Semiconductors, with Financial Services emerging as a Amish Shah, CFA >> Research Analyst

new favored sector. June also saw rotation out of Materials and Consumer Discretionary BofAS India