Morningstar’s Q2 2025 Asia Investment Outlook - Way of the Tai Chi: Channeling threats into opportunities in Asia

Having gotten off to a rocky start in 2025, China markets are now top-of-mind for investors as many are figuring out whether U.S. ‘exceptionalism’ is on the wane. The emergence of DeepSeek was a double-edged sword for global markets, where we witnessed a sell-off in AI stocks in the U.S, while Chinese tech stocks recovered significantly and presented themselves as a viable option to the Magnificent Seven. At the same time, ongoing geopolitical uncertainties and the unfolding effects of Trade War Two on Asian markets continues to be a developing narrative, with additional layers of volatility being introduced on a near daily basis. As we move into the second quarter, what is clear that the only certainty is more uncertainty – but how can investors mitigate risk and turn threats into opportunities? Join Morningstar’s Kai Wang, Asia Equity Market Strategist, Chelsey Tam, Senior Equity Analyst, Equity Research, Arvind Subramanian, Senior Analyst, Manager Research, and Sam Hui, Analyst, Manager Research, as they shed light on how one can overcome adversity and achieve returns in what is becoming an increasingly volatile market. They'll review the performance of Asian equities in Q1 2025, highlight undervalued sectors (with a special focus on the consumer sector) and introduce new additions to the Best Picks List. Additionally, the session will also share what are our high conviction fund ideas in a rate cut environment, along with what we think investors should include in a model portfolio.