If there’s one spot that investors should look to amid all the fiscal risks in most major economies and the de-dollarisation narrative, it’s Asia ex-Japan (AxJ). The US has its own set of issues and so does Europe, and with Japan also facing a power struggle between the government and central bank, there are clear considerations for a shift of money to the other side of the globe.
That is what we saw happen in 2025, despite the first half of the year being littered by risks of Trump’s tariffs. And we’re seeing sentiment continue to build towards that again as we get into 2026.
The latest Asian currency positioning poll by Reuters here is one that underscores the prevailing narrative and once again, Asian currencies are the ones that might actually benefit the most this year amid all the havoc around the globe