Global markets stabilized following the easing of Middle East tensions, with investor focus shifting back toward corporate earnings and AI-related capital expenditure trends. U.S. equities rebounded strongly after a robust Q1 earnings season, while AI-related technology and hardware sectors continued to lead market performance globally.

Within Asia, Taiwan and Korea equities remained key outperformers, supported by strong AI-driven earnings momentum and their dominant positions in the global AI hardware supply chain, although elevated retail participation continued to contribute to higher volatility.

In contrast, Hong Kong and China equities remained relatively subdued, though China A-shares demonstrated greater resilience amid improving inflation trends, strong green-energy exports, and expectations of gradual RMB appreciation. India and ASEAN markets continued to face pressure from high oil prices, currency weakness, and macroeconomic challenges, while Latin America benefited from stronger oil and agricultural exports.

In fixed income, Asian credit spreads remained relatively tight despite uncertainty surrounding U.S. inflation and interest rate expectations. Meanwhile, gold continued to find support from ongoing central bank demand, particularly from China.

Source: J.P. Morgan, MSCI, Morningstar, Data as of 30 April 2026

China / Hong Kong Equities

• The US market rebounded very quickly since the end of March as the attention has shifted from the Iran war to the Q1 earnings season, with a focus on tech companies. S&P 500 companies achieved 84% beat in this earnings season, with all 11 sectors showing positive growth for the first time in over 4 years.
• The attention has particularly focused on CapEx and outlook of the AI sector, which is very encouraging, with CapEx raised across all hyperscalers and most tech hardware companies beating and raising.
• Hong Kong market, however, is dominated by internet companies, with very low exposure to tech hardware companies. Internet companies’ earnings are still being dragged down by competition in e-commerce and the slow monetization of AI investments.
• Until the tech hardware sector becomes too crowded and some rotation back to the Hong Kong China market, investors will probably continue to underweight Hong Kong China.

China A-Shares

• China A-Shares, on the other hand, is more broad-based and has higher exposure to tech hardware. The market is very diverged, with tech hardware-related sectors making all-time highs while old-economy sectors lag.
• However, with both PPI and CPI now turned positive and the trend gradually improving, sentiment will gradually improve. Also, as exports in April was very strong, with green energy related exports made up 40% of the growth (EV, battery, wind-power related, etc.), more countries are becoming more reliant on China in terms of energy supply.
• As a result, demand for RMB will increase, and we continue to expect a gradual appreciation of the RMB, which is supportive of the recovery in consumption.​

Asia ex-Japan Equities

• There is a huge divergence in Asia now, with the huge outperformance of Korea and Taiwan, while ASEAN plus India massively underperformed.
• Taiwan and Korea equities rebounded strongly since the end of March as the strong AI demand and development continue to translate into significant earnings growth. With the supply and demand imbalance in many of the AI components in which Taiwan and Korea dominate the supply chain, these two markets will continue to lead the region, especially now that these two markets are already ranked 6th and 7th in terms of market cap globally. However, with the increasing participation of retail investors and skyrocketing margin balances, volatility will remain high.
• India and ASEAN countries, on the other hand, which are heavy oil importers, have been hit by the continuously high oil prices. The current deficit in these countries is increasing, and their currencies continue to depreciate with inflation rising. Although valuation is cheap in these countries, the macro picture remains very challenging.​

Emerging Market ex-Asia Equities

• Latin American has benefited from the high oil price as most of them are oil-exporting countries. As the market increasingly expects the higher oil price to last for longer, the macro picture of these countries will continue to improve from both oil and agriculture exports.​

Japanese Equities

• BOJ has intervened in the market when USD/JPY broke above 160, then USD/JPY was brought down to 156-158. The probability of a June rate hike is increasing in Japan as inflation is rising.
• However, the volatility in the JPY and uncertainty in the interest rate movement will hinder the market. Also, the Japan market is very diverged, with the tech/ AI companies continue to rally while the old economies suffer from lower consumption.

Asia Investment Grade Bonds

• US Treasury yields have been volatile as the market is reassessing the near-term and longer-term inflation and interest rate outlook. Core CPI in April was higher than expected, but it was mostly due to higher rent and airfare, and hotel prices rather than higher core good prices.
• However, the market will continue to watch for the longer-term trend. The market has no hope on any rate cut this year and even priced in a mild probability of a rate hike for next year. Yet, with Kevin Warsh now going to be the new Fed chair, his stance on interest rates remains uncertain.
• Duration has been the biggest factor moving the Asia investment-grade bond prices recently. We expect long-end US Treasury yields to move in a range as the market will continue to debate between the inflation and interest rate outlook and the inevitably increase in fiscal deficit.

Asia High Yield Bonds

• Spreads of Asian high yield continue to remain at levels way below average amid new supply remains subdue. Sentiment has improved after the Iran war ceasefire, and demand for high-yield bonds remains strong.
• However, the impact on default and spread widening in the US high yield bonds due to the cracks in private credit and bank loans will remain a risk factor.

Emerging Market Debt

• Spreads remain tight, but investor demand remains very strong. Latin American has benefited from the high oil price as most of them are oil-exporting countries. As the market increasingly expects the higher oil price to last for longer, the macro picture of these countries will continue to improve from both oil and agriculture exports.

Gold

• In the near term, Gold prices remain in a range-bound due to the strong USD, as there is no interest rate cut now in the US. However, most central banks, including China, have continued to buy Gold to diversify away from US Treasuries.
• Especially in China, we saw that March and April Gold holdings were significantly increased. The acceleration of the “petro-yuan” trend will only increase demand for gold. Institutional investors’ gold positioning remains low and is likely to increase over time.

Multi-Asset

• A multi-asset strategy offers lower volatility compared to traditional single-asset or balanced portfolios. However, the correlation between risk assets, such as equities, credits, and commodities, has recently increased dramatically. In an uncertain environment, income becomes an essential source of return for investors.

Source: Bloomberg, Data as of 30 April 2026.

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^{The views expressed are the views of Value Partners Hong Kong Limited only and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All materials have been obtained from sources believed to be reliable as of the date of presentation, but their accuracy is not guaranteed. This material contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.}

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