Shifting Perspectives: Outlook for Asian Investors In A Rapidly Evolving Landscape

“Geopolitics, macroeconomics, and technology are deeply interconnected,” said Jerome Niddam, Chief Executive Officer for Asia Pacific at Societe Generale. “This convergence challenges us to think differently – about how we operate our business and how we invest.”

Europe’s Resilience and Strategic Autonomy

A key theme was the resurgence of European equities. Demand for European assets in Asia is rising — particularly in infrastructure, digital connectivity, and sustainable finance. 

Southern European economies are benefiting from restructuring, while Germany faces a pivotal moment of industrial and fiscal reinvention. Italian stocks have delivered double-digit returns this year, with the FTSE MIB up nearly 20%, outperforming broader European indices.¹

Count Herman Van Rompuy, former President of the European Council and Prime Minister of Belgium, emphasised Europe’s pursuit of strategic autonomy in “an age of unilateralism”, echoing the conference theme: Navigating a Deglobalising Future. 
Speaking on Europe’s willingness to unite in the face of existential threats, he highlighted that the continent’s renewed focus on self-sufficiency presents opportunities for long-term investors, particularly in clean energy infrastructure and technology. 

“We need European projects financed on a European capital market with the help of a European budget. We have to think much more European.” 

Portfolio Recalibration in a Shifting World 

While Europe offers diversification, the US remains central to global portfolios. Susan Chan, Head of Asia Pacific at BlackRock, noted that what the world is witnessing is not necessarily deglobalisation — but a recalibration. 
“What’s happening is more of a redistribution of flows than a decoupling,” she said. 

Investors are rethinking portfolio construction – blending public and private exposures to manage risk and capture liquidity premiums. Concentration risk in US equities and evolving dynamics in private markets are prompting a reassessment of diversification strategies. 

To manage downside risks, investors emphasised the importance of adapting to the market environment. 

“How do we look at risk? How do we look at liquidity? That’s becoming more front and centre today for investor in order to achieve risk-adjusted returns over their time horizon,” she added.  

AI and the Balance of Innovation 

Optimism around artificial intelligence (AI) was another recurring theme at the conference. While valuations may be stretched, the AI story is far from over. Panellists expect investment to expand beyond the “Magnificent Seven” US tech stocks as the benefits of AI extend across value chains.

However, the race for AI supremacy is reshaping global dynamics. Countries are building their own capabilities in chips, AI models and data infrastructure, potentially favouring companies aligned with national interests over those that are truly global. 

Dr. Parag Khanna, Founder and CEO of AlphaGeo, described this as a feature of today’s increasingly multipolar world. “It’s the balance of innovation that shapes the balance of power,” he said. “The balance of power between nations is the result of the innovation that is going on within the economy — and the financing of that innovation.”

Asia, he said, has already adjusted to the new balance of power through a policy of “multi-alignment”, with trade between China and Southeast Asia now exceeding USD950 billion annually. 

For investors looking to capitalise on the rapid diffusion of AI technology, compute power, private data, and sustainable energy to support digital infrastructure were all seen as key enablers of long-term competitiveness.

Bridging Global Opportunities

The conference underscored Asia’s role as a vital market for global investors at a time when diversification is coming into renewed focus. 

In closing, Hatem Mustapha, Co-Head of Global Markets and Head of Equities & Equity Derivatives at Societe Generale, reinforced the Bank’s commitment to connecting global investors with local opportunities. 

“Even in different markets, the main questions and challenges are very similar. This shows how much our world is connected,” he said. “At Societe Generale, our mission is to be by your side, offering solutions that are robust, relevant and adapted to your needs.”

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