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- Written by: HuddleWorld

Asia’s investment climate in mid‑2025 is bifurcated. The AI compute cycle is driving powerful capital spending and earnings momentum across semiconductors and test equipment, while autos/EVs navigate uneven demand, price wars, and regulatory cross‑currents. China‑related policy risk and tariffs continue to set the valuation ceiling for internet platforms and hardware supply chains, even as leaders adapt with targeted M&A and tighter compliance. Japan’s tech complex benefits from AI‑led orders but faces headline and governance scrutiny; Korea’s champions are positioned for a semis upturn. Investors should lean into high‑quality beneficiaries of AI infrastructure and disciplined auto incumbents, while underwriting elevated volatility and geopolitical risk premia.